Members' Research Service By / January 13, 2022

European green bonds: A standard for Europe, open to the world [EU Legislation in Progress][Policy Podcast]

The EU’s commitment to the objectives of the Paris Agreement, and the ambitious European Green Deal, requires significant investment.

© vincenzo addomino/EyeEm / Adobe Stock

Written by Stefano Spinaci (1st edition).

Green bonds are committed to financing or re-financing investments, projects, expenditure or assets helping to address climate and environmental issues. Both governments and companies use them to finance the transition to a more sustainable and low-carbon economy.

Since the EIB inaugurated the green bond market in 2007 with its Climate Awareness Bond, the market has grown very fast, but it still represents only about 3 to 3.5 % of overall bond issuance. The green bond market needs to grow more quickly to achieve the targets in the Paris Agreement.

The Commission’s proposal aims to establish an official EU standard for green bonds aligned with the EU taxonomy for sustainable activities, based on a registration system and supervisory framework for external reviewers of European green bonds.

The proposal is currently being examined by the co-legislators. Within the European Parliament, the file has been assigned to the ECON committee. In the Council, the working party on financial services is meeting to discuss the dossier.


Proposal for a Regulation of the European Parliament and of the Council on European green bonds
Committee responsible:Economic and Monetary Affairs (ECON)COM(2021) 391
Rapporteur:Paul Tang (S&D, The Netherlands)2021/0191(COD)
Shadow rapporteurs:Christophe Hansen (EPP, Luxembourg)
Gilles Boyer (Renew, France)
Bas Eickhout (Greens/EFA, The Netherlands)
Gunnar Beck (ID, Germany)
Andżelika Anna Możdżanowska (ECR, Poland)
José Gusmão (The Left, Portugal)
Ordinary legislative procedure (COD)
(Parliament and Council on equal footing – formerly ‘co-decision’)
Next steps expected: Consideration of draft report in committee
EU Legislation in progress timeline

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