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ARTICLE · 06 JUNE 2023

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Green Bonds: Update On EU Green Bond Standard Regulation

The provisionally agreed text of the EU Green Bond Standard (EU GBS) Regulation is now available. Next steps are formal ratification by both the EU Council and the European Parliament...

European UnionEnvironment

The provisionally agreed text of the EU Green Bond Standard (EU GBS) Regulation is now available. Next steps are formal ratification by both the EU Council and the European Parliament, following its recent approval by the relevant committees (COREPER and ECON respectively) after trilogue negotiations concluded successfully in February 2023.

We will publish a more detailed update when the final text is available. In the meantime, key points to note from the provisional text are as follows:

Voluntary designation

In line with the Commission's original proposal (and notwithstanding a push from the Parliament to make it mandatory), the EU GBS framework will remain voluntary i.e. issuers can opt to use the 'European green bond' or 'EuGB' designation for bonds where an EU Prospectus Regulation prospectus is required, or where the issuer is an EU or third country sovereign issuer.

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This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.

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