- ALSO READ
What is holding India back from joining global bond indices?
TMS Ep260: India Inc investments, global bond indices, markets, EWS quota
Bludgeoned bond markets hope peak inflation to bring revival: Analysis
Bond yields fall on short-covering; market still hopes for index inclusion
Average cut-off yield spikes by 12 bps to 7.84% at state bond action
-
European Union negotiators reached a deal to establish a green bond standard, giving investors long-awaited clarity that their money is aligned with the region’s climate ambitions.
Companies that use the standard will have to prove that the proceeds from their green bonds are in line with the bloc’s list of environmentally friendly activities, known as the taxonomy. They will, however, get a 15 per cent “flexibility pocket” for activities that aren’t yet covered by the rulebook, according to the terms of the agreement reached by EU lawmakers and member states.
“This regulation creates a gold standard that green bonds can aspire to,” said Paul Tang, parliament’s chief negotiator. “Any green bonds not using this system will likely be looked at with increasing suspicion.”
The long-awaited deal has been plagued by disagreements over how strict the rulebook needs to be, and whether all issuers marketing green bonds in Europe should be required to comply. Negotiators failed to reach a deal in December, as parliament and member states debated how much flexibility issuers should get when investing the proceeds.
Subscribe to Business Standard Premium
Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!
Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.
Download the Business Standard App for latest Business News and Market News .
First Published: Thu, March 02 2023. 00:11 IST
RECOMMENDED FOR YOU