The European Association of Corporate Treasurers (EACT) has published its response to the European Commission’s (EC) consultation on the creation of an EU Green Bond Standard (EU GBS). We fully support the creation of a voluntary EU GBS that brings further standardisation and possible cost reductions to the green bond market. We are also supportive of putting in place incentive structures that can render green bond issuance less cumbersome and costly.
Upcoming changes to non-financial reporting rules as well as the introduction of corporate disclosure requirements under the Taxonomy Regulation will result in an increasing availability of company specific ESG information. In order to support further growth of the green bond market this information could be leveraged to allow for general corporate purpose issuance under the umbrella of the EU GBS to turn green bonds into a genuine alternative to conventional bonds.