European Union
New voluntary label for bonds offered or listed in the EU to be marketed as EU Green Bonds
On 5 October 2023, the European Parliament and the Council have adopted the text for the Regulation on European Green Bonds and optional disclosures for bonds marketed as environmentally sustainable and sustainability-linked bonds, which will become directly applicable 12 months after publication. The Regulation lays down the foundation for a common framework that bond issuers, whether within or outside the EU, need to follow if they want to make bonds available to investors in the EU using the "European Green Bond" designation.
The key aspects of this new standard are:
- the link between the use of proceeds and the EU Taxonomy,
- the prescriptive disclosure regime for the EU Green Bond label,
- a voluntary lighter disclosure regime applicable to bonds marketed as environmentally sustainable and sustainability-linked bonds, and
- the introduction of supervisory and sanctioning powers to National Competent Authorities.