The Green Bond Principles (GBP), updated as of June 2018 are voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the Green Bond market by clarifying the approach for issuance of a Green Bond. The GBP are intended for broad use by the market: they provide issuers guidance on the key components involved in launching a credible Green Bond; they aid investors by ensuring availability of information necessary to evaluate the environmental impact of their Green Bond investments; and they assist underwriters by moving the market towards standard disclosures which will facilitate transactions.
The Climate Bonds Standard is a science-based labelling scheme for green bonds, with rigorous scientific Criteria consistent with the 2 degrees Celsius warming limit in the Paris Agreement. The Climate Bonds Standard is an easy-to-use tool that allows investors and intermediaries to assess the environmental integrity of bonds. It is used globally by bond issuers, governments, investors and the financial markets to prioritise investments which genuinely contribute to addressing climate change.
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The EU Technical Expert Group on Sustainable Finance (TEG) has published three new reports in June 2019 with its recommendations how to implement the European Commission’s action plan on financing sustainable growth from March 2018. They provide a valuable resource to both issuers and investors looking at developments in green and sustainable finance.
The reports comprised:
· a Final report on the EU taxonomy, accompanied by a short user guide;
· a Final report on the EU Green Bond Standard;
· and an interim report on Climate benchmarks.
Please note that the European Commission also published its new non-binding guidelines for companies on how to report climate-related information, which are based on the TEG report from January 2019.