Status: 01/03/2023 08:56 AM
European Union countries have approved a new seal for green bonds. It should be easier for investors to invest in environmentally friendly and climate friendly projects in the future.
The new EU designation for “European Green Bonds” aims to assist investors in their future investment decisions. Negotiators from EU countries and the European Parliament approved the new seal late Tuesday evening, the Council of Member States announced.
The new law establishes uniform requirements for publishers to use the new label. This makes it easier for them to prove that they are investing in projects that are truly sustainable and climate friendly.
Official confirmation is pending
According to the information, the new criteria relate to the EU classification, which already lists the areas in which citizens and companies can invest money to combat climate change. In addition, a supervisory framework for external auditors of green bonds will be established. For areas not yet regulated in the classification, a certain degree of flexibility was initially planned.
The agreement must now be officially ratified by the European Parliament and EU countries. It enters into force one year after its entry into force. So it will likely be some time before investors actually benefit from the new seal.
