Eurosif – position on the EU Green Bond Standard (EU GBS)

Eurosif position is based on the ideal design of the EU GBS; a design that would ensure the right balance between voluntary market uptake and an ambitious and credible bond standard. The position also addresses various ideas that have been discussed to date in Council and in Parliament.

Our key messages are:

1. The EU GBS should be voluntary for all issuers, both public (including EU institutions) & private;
2. The so-called flexibility pocket should be limited (no more than 20% of proceeds to be allocated to non-Taxonomy-aligned activities), available to both sovereign & corporate issuers, and flexible use of bond proceeds should be subject to clear transparency requirements;
3. Potential issuers active in natural gas and/or nuclear power sectors should be required to disclose net-zero decarbonisation plans in order to be eligible for the EU GBS;
4. Specific transparency requirements are needed in the case of projects funded by the EU GBS that will meet Taxonomy criteria within five years of the issuance of the bond;
5. Grandfathering rights should be introduced to ensure that issuers benefit from the EU GBS label from the issuance of the bond until full maturity so as to prevent changes to Taxonomy criteria creating uncertainty in the green bond market

 

Contact details

Aleksandra Palinska, Executive Director – aleksandra.palinska@eurosif.org

Calum Thomson, Communications Officer – communication@eurosif.org