European green bonds: the gold standard of sustainable bonds

The Regulation (EU) 2023/2631 (EU GBR) of the European Parliament and the Council dated 22 November 2023 is applicable in all members states from 21 December 2024. The EU GBR establishes a mandatory framework for bonds issued under the label of “European Green Bonds” (EuGBs) that are made available to investors in the EU. It also sets out optional disclosure requirements for other bonds marketed as environmentally sustainable or sustainability-linked bonds within the European Union (EU). This regulation aims to enhance transparency standardisation and credibility in the green bond market thereby fostering investor confidence mitigating the risks of greenwashing and supporting the EU’s sustainability goals.