Short-term costs and usability issues loom over EU’s green bond standard

A voluntary label to encourage growth in Europe’s green bond market is welcome, but it could increase costs for issuers, argues the Institute for Energy Economics and Financial Analysis

Finalised in November 2023 and due to enter into force 12 months later, the European Green Bond Standard is a voluntary label available to green bond issuers inside and outside the EU aimed at improving the instrument’s credibility. To secure the label, bonds will need to meet certain requirements, such as ensuring all of their proceeds are invested in line with the EU taxonomy.