EU Green Bond Standard
The European Green Bond Standard Regulation introduces a voluntary EU label for the issuance of EU Taxonomy-aligned green bonds.
Issuers that wish to label their green bonds as European Green Bonds (EuGBs) must meet a set of specific criteria, including using at least 85% of the proceeds for economic activities aligned with the EU Taxonomy. With the aim of creating an international gold standard, the Regulation also introduces voluntary disclosure requirements for non-EU bonds with environmental objectives.
In addition, issuers of European Green Bonds must disclose information on how the proceeds are used and, where they publish transition plans, explain how the proceeds support the implementation and financing of those plans.
The Regulation also establishes a registration and supervision framework for external reviewers of EuGBs.
The Regulation introducing the label has applied since 21 December 2024.
The standard is expected to encourage further issuance of green bonds in the EU while strengthening their credibility and reliability for investors. Its launch in 2025 demonstrated strong appetite from both investors and issuers, with corporates issuing EUR 11 billion and Denmark becoming the first sovereign issuer with a EUR 900 million issuance.
