Shearman & Sterling LLP | FinReg | European Commission Consults on Proposed EU Green Bond Standard
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  • European Commission Consults on Proposed EU Green Bond Standard

    The European Commission has published a consultation on the establishment of an EU Green Bond Standard. The EU's GBS initiative forms part of the European Green Deal, which aims to increase the EU's climate action and environmental policy ambitions. The proposed GBS will establish standards and labels for green financial products and instruments. In June 2019, the EU Technical Expert Group on Sustainable Finance published a report on the proposed GBS, setting out ten recommendations for the substance of the GBS and for how market participants and regulators could support and monitor it. In March 2020, the TEG also published a Usability Guide to the GBS, setting out the TEG's views on its application, including confirming its view that the GBS should be voluntary. The TEG's March 2020 report also included a series of recommendations for the secondary legislation to be published in connection with the EU's proposed Taxonomy Regulation. The Commission and TEG recently published joint FAQs on the EU taxonomy and GBS.

    The Commission's consultation seeks feedback from all relevant stakeholders in the green bond market, particularly issuers, investors and related service providers. It poses a series of questions on different topics relevant to the GBS, including the need for an official or formalized GBS, the proposed content of the GBS, the use of proceeds and links between the GBS and the EU's proposed Taxonomy Regulation. The Commission hopes that the feedback it receives will help it to build on the TEG's reports.  Responses to the consultation should be submitted by October 2, 2020.

    View the Commissions consultation.

    View details of the Commission's FAQs on sustainable finance initiatives.

    View details of the TEG's March 2020 taxonomy recommendations and Usability Guide to the GBS.

    View the TEG's June 2019 Green Bond Standard report.

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