Landmark EU deal to combat bond greenwashing

If a bond doesn’t manage to fulfill its commitments under the standard, its issuer will be liable for any damages suffered by investors through the EU’s prospectus regulation, a source said. — Bloomberg

BELGIUM: European Union (EU) negotiators reached a deal to establish a green bond standard, giving investors long-awaited clarity that their money is aligned with the region’s climate ambitions.

Companies that use the standard will have to prove that the proceeds from their green bonds are in line with the bloc’s list of environmentally friendly activities, known as the taxonomy.