The Green Bond Standard is the flagship financial instrument incorporating the EU Taxonomy. After the Council and the European Parliament adopted their positions, its status is entering a new phase, the inter-institutional negotiations. It is a good moment to take stock of the different policy aspects related to green bonds: relation with the Taxonomy, the skyrocketing demand for “sustainable” bonds and their role in financing the transition of businesses.   

The linkage of the EU green bonds standards with the Taxonomy caused political turbulences reflecting its controversial nature and difficult discussion over the inclusion of gas and nuclear energy into the Taxonomy. This was the reason behind the opposition of some Member States and MEPs to the new green bonds standard. Another source of controversy is the degree of alignment with the Taxonomy and the overall level of requirements. The Council allowed a 20% pocket for non-Taxonomy-related investments. The European Parliament wants much stricter rules applicable to the EU green bond standard, including restrictions for doing business in tax havens. These negotiations reflect the need to find a balance between the desire to create the golden standard of the highest purity and the instrument of business reality.

This event aimed at taking stock of the EU Green Bonds initiative and identifying the challenges and opportunities related to this instrument in the context of financing the transition.

Agenda    ERCST Slides    ERCST Publication