EU carbon rules / Regulations / EU Green Bond Standard
Voluntary standard for uniform ‘green bond’ naming and disclosure (applies from 2024-12; amended by the ESAP Regulation 2023/2869)
This regulation applies to:
This Regulation applies from 21 December 2024 (some provisions apply from 20 December 2023 and some from 21 June 2026).
The following provisions define its scope:
Article 1 — Subject matter
This Regulation: (a) lays down uniform requirements for issuers of bonds who wish to use the designation ‘European Green Bond’ or ‘EuGB’ for their bonds that are made available to investors in the Union; (b) establishes a system to register and supervise external reviewers of European Green Bonds; and (c) provides optional disclosure templates for bonds marketed as environmentally sustainable and for sustainability-linked bonds in the Union.
Article 3 — Designation ‘European Green Bond’ or ‘EuGB’
The designation ‘European Green Bond’ or ‘EuGB’ shall be used only for bonds that comply with the requirements set out in this Title.
| Duty | Trigger | Evidence | Timing |
|---|---|---|---|
| Use of the European Green Bond label must meet the standard Issuance must meet taxonomy alignment, allocation of proceeds and external review requirements. | Issuing and marketing a bond as an EU green bond | Allocation report, external review, impact report | After 2023/2631 enters into force |
Article 3 — the ‘European Green Bond’ designation
The designation ‘European Green Bond’ or ‘EuGB’ shall be used only for bonds that comply with the requirements set out in this Title.
Article 4(1) — use of proceeds (gradual approach)
Before the maturity of a European Green Bond, the proceeds of such a bond shall be allocated in full, in accordance with the taxonomy requirements, to one or more of the following categories (the ‘gradual approach’): (a) fixed assets that are not financial assets; (b) capital expenditure that falls under point 1.1.2.2. of Annex I to Delegated Regulation (EU) 2021/2178; (c) operating expenditure that falls under point 1.1.3.2. ... and was incurred no more than three years before the issuance ...; (d) financial assets that were created no more than five years after the issuance ...; (e) assets and expenditure of households.
Article 4(2) — portfolio approach
By way of derogation from paragraph 1, issuers may allocate proceeds from one or more outstanding European Green Bonds to a portfolio of fixed assets or financial assets in accordance with the taxonomy requirements (the ‘portfolio approach’).