European Parliament approves world's first green bond standards to avoid greenwashing
International
The approval of unprecedented EU green bond standards by the European Parliament on 5 October is a milestone in the world of sustainable finance. These standards are the first of their kind globally and have far-reaching implications for both Europe and the international community. Basically, these standards are designed to create a unified framework for green bond issuance within the European Union (EU), a framework that prioritizes sustainability, transparency and accountability. The EU green bond standards represent a huge leap forward in green finance. They require that at least 85% of the proceeds from green bonds must be dedicated to financing activities aligned with the EU taxonomy for sustainable activities. This classification serves as a comprehensive classification system that identifies economic activities that make a significant contribution to climate change mitigation or adaptation.
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