On Monday, MEPs in the Economic and Monetary Affairs Committee adopted their negotiation position on the Regulation on European green bonds. The text, prepared by Paul Tang (S&D, NL), introduces numerous changes to the Commission’s proposal and was approved by 44 votes in favour, 12 against and 3 abstentions.
Wider scope
The amended proposal seeks to better regulate the entire green bond market, rather than only establishing the European Green Bond label (EuGB), and reduce so-called “green washing”.
For all bonds that are marketed as green, transparency requirements are introduced, including being aligned with the taxonomy legislation on the use of proceeds derived from the bond issuance. This would allow investors to compare EUGBs with other existing green bonds. In addition, all those issuing green bonds must have safeguards in place to ensure they do not harm people or planet.