Regulation (EU) 2023/2631 on European Green Bonds and optional disclosures for bonds marketed as environmentally sustainable and for sustainability-linked bonds

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Series Title
Series Details 2023/2631
Publication Date 30/11/2023
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Summary:

Regulation (EU) 2023/2631 - adopted by the co-legislators on 22 November 2023 - establishing a voluntary standard for bonds aimed at financing sustainable investment - the so-called European Green Bond Standard (EUGBS) - and optional disclosures for bonds marketed as environmentally sustainable and for sustainability-linked bonds. This is a text with EEA relevance.

Further information:

This Regulation lays down uniform requirements for issuers of bonds who wish to use the designation European Green Bond or EuGB for their bonds that are made available to investors in the European Union (EU). It establishes a system to register and supervise external reviewers of these bonds, and it also provides optional disclosure templates for bonds marketed as environmentally sustainable and for sustainability-linked bonds in the EU.

The Act seeks better exploit the potential of the Capital Markets Union (CMU) to contribute to meeting the European Union's climate and environmental goals (as set by the European Green Deal). It is aimed at facilitating further development of the market for high-quality green bonds, while minimising disruption to existing green bond markets and reducing the risk of greenwashing.

The draft law was adopted by the European Commission on 6 July 2021 alongside a Communication setting out a new strategy for financing transition to sustainable economy. The Council of the European Union adopted its general approach on 13 April 2022. The European Parliament's relevant committee adopted a negotiating position on 17 May. An informal agreement between the co-legislators on a compromise text for this file was reached on 28 February 2023. This was formally endorsed by Parliament on 5 October and by the Council on 24 October. The Act was signed by the co-legislators on 22 November 2023 and published in the Official Journal on 30 November 2023.

Source Link Link to Main Source http://data.europa.eu/eli/reg/2023/2631/oj
Related Links
Official
EUR-LEX: COM(2021)391: Proposal for a Regulation on European green bonds https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2021:391:FIN
EUR-LEX: SWD(2021)181: Staff Working Document accompanying the Proposal - Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:181:FIN
EUR-LEX: SWD(2021)182: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:182:FIN
European Parliament: Legislative Observatory: Procedure File for Proposal on European green bonds (2021/0191(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2021/0191(COD)
European Parliament: Legislative Train Schedule: Establishment of an EU Green Bond Standard https://www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-eu-green-bond-standard
European Commission: European green bond standard https://ec.europa.eu/info/business-economy-euro/banking-and-finance/sustainable-finance/european-green-bond-standard_en
General Secretariat of the Council: Policies: Financing the climate transition https://www.consilium.europa.eu/en/policies/climate-finance/
European Commission: Press Release, 06/07/2021: Commission puts forward new strategy to make the EU's financial system more sustainable and proposes new European Green Bond Standard https://ec.europa.eu/commission/presscorner/detail/en/ip_21_3405
European Commission: Questions and Answers: European Green Bonds Regulation (6 July 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_3406
European Commission: Remarks by Executive Vice-President Dombrovskis at the press conference on the New Sustainable Finance Strategy and a European Green Bond Standard (6 July 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_3506
European Commission: Remarks by Commissioner McGuinness at the press conference on the New Sustainable Finance Strategy and a European Green Bond Standard (6 July 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_3522
EUR-LEX: OJ C 27, 19/01/2022: Opinion of the European Central Bankon a proposal for a regulation on European green bonds (CON/2021/30) https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:52021AB0030
Council of the European Union: Press Release, 13/04/2022: Sustainable finance: Council agrees its position on European Green Bonds https://www.consilium.europa.eu/en/press/press-releases/2022/04/13/sustainable-finance-council-agrees-its-position-on-european-green-bonds/
European Parliament: Press Release, 17/05/2022: European Green Bond Standard: new measures to reduce green washing https://www.europarl.europa.eu/news/en/press-room/20220516IPR29640/
European Free Trade Association (EFTA): News, 25/05/2022: EEA EFTA Comment on European Green Bonds Proposal https://www.efta.int/EEA/news/EEA-EFTA-Comment-European-Green-Bonds-Proposal-529991
Council of the European Union: Press Release, 28/02/2023: Sustainable finance: Provisional agreement reached on European green bonds https://www.consilium.europa.eu/en/press/press-releases/2023/02/28/sustainable-finance-provisional-agreement-reached-on-european-green-bonds/
European Parliament: Press Release, 28/02/2023: Legislators strike deal on a new standard to fight greenwashing in the bond markets https://www.europarl.europa.eu/news/en/press-room/20230227IPR76596/
Renew Europe EP Group: News, 28/02/2023: European Green Bonds Standard: an ambitious European instrument to enable the green transition in financial markets and to ensure transparency for investors https://www.reneweuropegroup.eu/news/2023-02-28/european-green-bonds-standard-an-ambitious-european-instrument-to-enable-the-green-transition-in-financial-markets-and-to-ensure-transparency-for-investors
European Parliament: Press Release, 05/10/2023: Greening the bond markets: MEPs approve new standard to fight greenwashing https://www.europarl.europa.eu/news/en/press-room/20230929IPR06139/
Renew Europe EP Group: Newsroom, 05/10/2023: European Green Bonds standard: an ambitious tool to favour green financial markets and ensure transparency for investors https://www.reneweuropegroup.eu/news/2023-10-05/european-green-bonds-standard-an-ambitious-tool-to-favour-green-financial-markets-and-ensure-transparency-for-investors
Council of the European Union: Press Release, 24/10/2023: European Green Bonds: Council adopts new regulation to promote sustainable finance https://www.consilium.europa.eu/en/press/press-releases/2023/10/24/european-green-bonds-council-adopts-new-regulation-to-promote-sustainable-finance/

News
Euronews, 06/07/2021: EU unveils 'gold standard' sustainable finance strategy to cut greenhouse gas emissions https://www.euronews.com/green/2021/07/06/brussels-unveils-gold-standard-bond-to-boost-private-investment-in-green-transition
Reuters, 06/07/2021: EU launches green bond framework to help it meet climate goals https://www.reuters.com/business/sustainable-business/eu-launches-green-bond-framework-help-it-meet-climate-goals-2021-07-06/
The Irish Times, 06/07/2021: McGuinness says opportunities for Ireland in new EU green bonds standard https://www.irishtimes.com/business/innovation/mcguinness-says-opportunities-for-ireland-in-new-eu-green-bonds-standard-1.4613240
Delano, 07/07/2021: Brussels unveils EU green bond framework https://delano.lu/article/brussels-unveils-eu-green-bond
EurActiv, 01/03/2023: EU negotiators agree on rules defining European green bonds https://www.euractiv.com/section/economy-jobs/news/eu-negotiators-agree-on-rules-defining-european-green-bonds/
Reuters, 05/10/2023: EU gives nod to "world's first" green bond standards https://www.reuters.com/sustainability/eu-gives-nod-worlds-first-green-bond-standards-2023-10-05/

Commentary and Analysis
Politico, 05/07/2021: EU green bonds won’t meet the bloc’s own high standards https://www.politico.eu/article/eu-green-bonds-wont-meet-the-blocs-own-high-standards/
Reuters: Explainer, 06/07/2021: EU throws weight behind new standard for green bonds https://www.reuters.com/business/sustainable-business/eu-throws-weight-behind-new-standard-green-bonds-2021-07-06/
European Trade Union Institute (ETUI): News, 08/07/2021: The European green bond standard: a good initiative hanging in the balance https://www.etui.org/news/european-green-bond-standard-good-initiative-hanging-balance
Freshfields Bruckhaus Deringer, 12/07/2021: The proposed EU Green Bond Standard - will this transform the market for green bonds? https://sustainability.freshfields.com/post/102h2na/the-proposed-eu-green-bond-standard-will-this-transform-the-market-for-green-bo
Bruegel: Blog, 13/07/2021: The EU green bond standard: sensible implementation could define a new asset class https://www.bruegel.org/2021/07/the-eu-green-bond-standard-sensible-implementation-could-define-a-new-asset-class/
Ashurst: News & Insights, 20/07/2021: European Commission Proposes EU Green Bond Standard Regulation https://www.ashurst.com/en/news-and-insights/legal-updates/european-commission-proposes-eu-green-bond-standard-regulation
White & Case: Alert, 23/07/2021: The new EU Green Bond Regulation – Fortune Green or Fortress Green? https://www.whitecase.com/publications/alert/new-eu-green-bond-regulation-fortune-green-or-fortress-green
S&P Global: Insights, 29/07/2021: Proposed EU standard seeks to bring clarity to ballooning green bond market https://www.spglobal.com/esg/insights/proposed-eu-standard-seeks-to-bring-clarity-to-ballooning-green-bond-market
Federation of European Securities Exchanges (FESE): Blog, 13/09/2021: FESE Position Paper on the Proposal for a European Green Bond Standard https://www.fese.eu/blog/position-on-the-european-green-bond-standard/
European Parliamentary Research Service (EPRS): Briefing, 21/10/2021: European green bond standard - Initial Appraisal of a European Commission Impact Assessment https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2021)694239
Nordea: News & Insights, 01/12/2021: ECB calls for mandatory EU Green Bond standard https://www.nordea.com/en/news/ecb-calls-for-mandatory-eu-green-bond-standard
European Banking Federation (EBF): Position Paper, 08/12/2021: Proposal for a regulation on European Green Bonds: EBF position https://www.ebf.eu/ebf-media-centre/proposal-for-a-regulation-on-european-green-bonds-ebf-position/
European Parliamentary Research Service (EPRS): Briefing, 12/01/2022: European green bonds: A standard for Europe, open to the world https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2022)698870
London School of Economics (LSE): Business Review Blog, 17/01/2022: The European Central Bank’s vision for green bond standards forgoes inclusivity https://blogs.lse.ac.uk/businessreview/2022/01/17/the-european-central-banks-vision-for-green-bond-standards-forgoes-inclusivity/#:~:text=The%20ECB%27s%20opinion%2C%20however%2C%20proposes,with%20the%20green%20bond%20market.
Moody's Analytics: Regulatory News, 19/01/2022: ECB Issues Opinions on Green Bonds Standard and CRR Proposals https://www.moodysanalytics.com/regulatory-news/jan-19-22-ecb-issues-opinions-on-green-bonds-standard-and-crr-proposals
Linklaters: Sustainable Futures, 26/01/2022: ESMA letter to co-legislators on proposed EU Green Bond Standard https://sustainablefutures.linklaters.com/post/102hh83/esma-letter-to-co-legislators-on-proposed-eu-green-bond-standard
Hertie School: Jacques Delors Centre: Policy Brief, 15/02/2022: Turning green into gold - How to make the European green bond standard fit for purpose https://www.delorscentre.eu/en/publications/detail/publication/green-bond-standard
Oxford University: Business Law Blog, 20/04/2022: Towards a European Green Bond Standard: What Is Needed to Be Fit for Purpose https://www.law.ox.ac.uk/business-law-blog/blog/2022/04/towards-european-green-bond-standard-what-needed-be-fit-purpose
Nordea: News, 07/06/2022: European Green Bonds: Proposed regulatory tightening aims to curb greenwashing https://www.nordea.com/en/news/european-green-bonds-proposed-regulatory-tightening-aims-to-curb-greenwashing
Clifford Chance: Briefings, 22/05/2023: The EU's Gold Standard – the final EU Green Bond Standard has landed but what does it mean for the green bond market? https://www.cliffordchance.com/briefings/2023/05/the-eu-s-gold-standard---the-final-eu-green-bond-standard-has-la.html
Hogan Lovells: Engage: News, 08/06/2023: European Green Bonds: what you need to know https://www.engage.hoganlovells.com/knowledgeservices/news/european-green-bonds-what-you-need-to-know
Allen & Overy: News & Insights, 29/06/2023: The EU goes for gold with its Green Bond Regulation https://www.allenovery.com/en-gb/global/news-and-insights/publications/the-eu-goes-for-gold-with-its-green-bond-regulation
European Parliamentary Research Service (EPRS): At a Glance, 27/09/2023: European green bonds https://www.europarl.europa.eu/thinktank/en/document/EPRS_ATA(2023)753940
Nordea: News & Insights, 10/10/2023: EU Green Bond Standard – Slowly getting there https://www.nordea.com/en/news/eu-green-bond-standard-slowly-getting-there

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