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EC expert group proposals step forward towards credible EU green bond market

Insurance Europe supports the development of a voluntary EU Green Bond Standard (GBS). In its response to a consultation by the European Commission’s Technical Expert Group (TEG) on its recommendations for the development of a GBS, Insurance Europe welcomed the TEG’s aim of enhancing the comparability of green bonds across issuers.

Insurance Europe said it appreciates the TEG’s acknowledgment that a credible EU GBS should be based on the European sustainability taxonomy. Alignment of the EU GBS with the EU taxonomy will allow the development of a more credible green bond market, while mitigating reputational and greenwashing risks for issuers and investors.

Insurance Europe also welcomed the TEG’s efforts to address the currently limited supply of suitable green projects to be financed by green bonds. As Europe’s largest institutional investor, insurers support the proposals for incentives to improve the pipelines of suitable green projects and their attractiveness. These should not crowd out private investors. Given that the green bond market is at an early stage of development, Insurance Europe also warned that a mandatory disclosure regime related to EU GBS compliant green bonds appears premature and should be further investigated at a later stage.

Published 8 April 2019