EU standard comes at a good time: green bonds are an opportunity

• Europe has just released a draft for the climate emissions framework
• A basket of green debt offers 4.24%, more than the traditional one
• This asset starred in the last monthly meeting of ‘elEconomista ESG’

At midnight from Tuesday to Wednesday, the EU achieved a historic milestone: the negotiators of the Council and the European Parliament reached an “provisional” understanding for the creation of a European green bond standard. Despite this adjective – provisional – the achievement is very relevant, since both parties have finally managed to reach an understanding. Once approved, what is likely to happen in the second half of the year, this will be the first law to set a standard for green debt issuance. From its approval, it will enter into force 12 months later, so that, predictably, the first bonds that apply this framework would be issued in 2024.

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