The new EU Green Bond Regulation – Fortune Green or Fortress Green?

While the green bond market has developed exponentially in the last five years with a growth rate of over 60%,1 liquidity is not nearly where the market needs it to be to function as an effective tool to meet the numerous demands from different quarters to channel sufficient funding towards the ambitious environmental and other goals such as those espoused by the EU Sustainable Finance Strategy2 and the UNSDG3.

The EU may be the first-past-the-post to deliver a regulatory framework to help increase green bond issuance to the required level with the twin regulations promoting the necessary standardisation, transparency and comparability within this asset class.

The Proposed EuGB Regulation has the potential to become an effective tool to enable the EU green bond market help the EU meet its goals under the EU Sustainable Finance Strategy and the UNSDGs.

17 However, the new Sustainable Finance Strategy will introduce “targeted prospectus disclosures for green, social and sustainable securities to enhance the comparability, transparency and harmonisation of information provided for such instruments and to help fight greenwashing”.

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks.

…Read the full story