Since the invention of green bonds 13 years ago, market participants have circled around the problem of what is green. There are many answers, such as the Climate Bonds Initiative’s standards, but none have any official authority. That is about to change. The EU’s Green Bond Standard is likely to become law before the year is out, and it could alter the market in several ways.
“The big change is that we have definitions for use of proceeds which say what is green or not,” said Eila Kreivi, head of the capital markets department at the European Investment Bank in Luxembourg. “This is a big question in the green bond market since the beginning.”
Source: Global Capital