Clifford Chance

European Green Bond Regulation

15 June 2022

Since the European Commission published its proposal for a Regulation on European green bonds ("EU GBS") in July 2021 as part of its agenda on sustainable finance to meet the goals of the Paris Agreement and the European Green Deal, the draft EU GBS has been widely discussed and commented on. The EU GBS is focused on the alignment of the use of proceeds of European green bonds with the EU Taxonomy, additional reporting requirements for issuers of European green bonds (pre- and post-issuance) as well as regulating the external review process.

At the end of May 2022, the Committee on Economic and Monetary Affairs (ECON) published its long-awaited report which inter alia includes proposals to increase disclosure requirements and to extend the scope of the EU GBS to all issuers of "bonds marketed as environmentally sustainable" in the EU. It further touches on aspects of securitisation and calls for increased liability and sanctions in case of non-compliance with the EU GBS.

We discuss these developments in the second edition of our monthly European capital markets briefing series.

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