European legislation in draft form

֍   European Green Bond Regulation - (EuGBR) (Annexes to EuGBR)

The European Commission has put forward a proposal for a Regulation laying down a common framework of rules on the use of the designation "European Green Bond" or "EuGB" for bonds that pursue environmentally sustainable objectives within the meaning of Regulation (EU) 2020/852 (Taxonomy Regulation). The "European Green Bond" designation is available to all issuers, inside or outside the EU, that meet the requirements of the Regulation. The 4 key requirements for EuGBs are: the funds raised must be fully allocated to projects aligned with the EU taxonomy; full transparency on the allocation of proceeds must be ensured through detailed reporting requirements; all EU green bonds must be verified by an external assessor to ensure compliance with the provisions of the Regulation and that the projects funded are aligned with the taxonomy; external assessors must be registered and supervised by ESMA.

The Regulation will apply to bond issuers wishing to use the designation "European Green Bond" or "EuGB" for bonds issued that pursue environmentally sustainable objectives within the meaning of the Taxonomy Regulation.