AFME welcomes provisional agreement reached on European Green Bonds Standard

The Association for Financial Markets in Europe (AFME) has welcomed the provisional agreement on the establishment of an European Green Bonds standard.
The agreement aims to establish a voluntary, science-based „gold standard“ for bonds funding activities aligned with the EU Taxonomy.
AFME believes that the establishment of an EU standard for green bonds based on the Taxonomy Regulation should complement existing market standards, further developing the market for environmentally sustainable bonds.
However, AFME also emphasized that the usability of the standard will largely depend on the degree of flexibility with the Taxonomy-alignment of proceeds, the treatment of green securitization, and the grandfathering provisions.