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).