The European Parliament has adopted a new voluntary standard for the use of a “European Green Bond” label, the first of its kind in the world.

 

The regulation lays down uniform standards for issuers who wish to use the designation ‘European green bond’ or ‘EuGB’ for the marketing of their bond, said a Wam news agency report.

 

The standards will enable investors to direct their money more confidently towards more sustainable technologies and businesses. It will also give the company issuing the bond more certainty that its bond will be suitable for investors who want to add green bonds to their portfolio. This will increase interest in this kind of financial product and support the EU’s transition to climate neutrality, it said.

 

The standards align with the EU’s taxonomy framework that defines which economic activities the EU considers environmentally sustainable.