
Green bonds
What are Green Bonds?
Green bonds are bond issues that finance investments that meet strict sustainability requirements while protecting investors. In Europe, such bonds must meet several criteria:
- Alignment with the EU taxonomy, which defines a CO2 emission threshold below which a company can be considered "green", i.e., contributing to positive climate change or mitigating global warming;
- Full transparency about the allocation of the proceeds of the bond issue to ensure that it goes toward legitimate "green" projects.
- All European green bonds must be verified by an external body to ensure compliance with the regulation and alignment with the taxonomy of the projects funded.
- Supervision by the European Securities and Markets Authority (ESMA).