The European Green Bond Standard seeks to be the “gold standard” for green bonds and reinforce the EU’s position as the leading market for sustainable finance.

With the adoption of the EU green bond standard (the EU GBS), the European Commission (the Commission) takes another important step towards implementing its Sustainable Finance Action Plan to support the growth of sustainable finance and direct capital towards sustainable growth. The EU GBS has been much anticipated, having been announced in concept by the Commission on January 14, 2020 as part of the “European Green Deal Investment Plan”, and then first proposed3 in substance on July 6, 2021, setting out requirements for environmentally sustainable bonds marketed in the European Union as “European green bonds” (EuGB). The EU GBS establishes a new voluntary regime for green bonds that seeks to cement the EU’s position as the leading market for sustainable finance, combat greenwashing risks associated with sustainable finance products, and provide greater investor protections through regulating the use of the EuGB label.