EU sets out green finance package

(BRUSSELS) - The EU Commission adopted measures Tuesday to improve the funding of sustainable projects, with an EU Green Bond Standard to facilitate capital flows to green investments and transition projects.

"To achieve our climate targets, we need sustained efforts to ensure more money flows towards a sustainable economy," said Financial Services Commissioner Mairead McGuinness: "Significant investment is needed to green the economy and create a more inclusive society, so that everyone can play their part."

The Renewed Sustainable Finance Strategy contains steps towards advancing the objectives of the European Green Deal and improving the funding of sustainable projects.

The strategy sets out several initiatives to tackle climate change, and other environmental challenges, while increasing investment - and the inclusiveness of small and medium-sized enterprises (SMEs) - in the EU's transition towards a sustainable economy.

The Regulation on a voluntary European Green Bond Standard (EUGBS) should create a high-quality voluntary standard available to all issuers (private and sovereigns) to help financing sustainable investments.

Green bonds are already used to raise financing in sectors such as energy production and distribution, resource-efficient housing, and low-carbon transport infrastructure. The Commission believes there is potential to scale-up and increase the environmental ambition of the green bond market. The EUGBS will set a 'gold standard' for how companies and public authorities can use green bonds to raise funds on capital markets to finance ambitious investments, while meeting tough sustainability requirements and protecting investors from greenwashing.

The Delegated Act supplementing Article 8 of the Taxonomy Regulation, which requires financial and non-financial companies to provide information to investors about the environmental performance of their assets and economic activities.

To prevent 'greenwashing', the Delegated Act specifies the content, methodology and presentation of information to be disclosed by large financial and non-financial companies on the share of their business, investments or lending activities that are aligned with the EU Taxonomy.

Strategy for financing the transition to a sustainable economy

Proposal for a Regulation on a European Green Bond

European Green Bonds Regulation - background guide