Wednesday, 01 March 2023 13:24

EU strikes deal to fight greenwashing in bond markets

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EU negotiators have struck a landmark deal to create the world's first "green" bond standard, aimed at becoming a global benchmark for investors in the green transition. The European Council and the European Parliament, which represent the 27 EU member states, announced the "world's first green bond standard" late on Tuesday. The European Commission first proposed the idea in July 2021. The standard complies with the Green Label, known in EU parlance as the "taxonomy", or EU legislation that defines which economic activities can be considered sustainable. The European Union aims to be carbon neutral by 2050.

Annual transactions in the European bond market are estimated to be worth 100 trillion euros ($107 trillion). The agreement must now be formally ratified by the council and parliament.

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