Although the amount of Green Bonds is growing, they occupy a small share of the whole bond market. One of the EU GBS’s desired achievements is to allocate more capital into this sector by making the green bonds transparent and evaluable for investors.
Also, on the opposite side, it would allow companies to issue green bonds, not considering their main activity but meeting the requirements of the EU Taxonomy.
A Usability Guide was released in March 2020 but has not been put into practice yet. After further consultation on the establishment of EU GBS and the renewed sustainable finance strategy, the future decision will be released by the European Committee in Q4 2020.
On the Green Bond Market, transparency is a crucial factor for investors in decision making. The EU Green Bond Standard assists issuers in providing important and necessary information, which increases the reliability of green bonds, supports the green market’s growth and reduces the risk of greenwashing.