The European Green Bond Standard (EUGBS) is a voluntary standard that helps to expand and enhance the green bond market environment. The creation of this standard was included in the European Commission's 2018 action plan on financing sustainable economic growth, and it is part of the European Green Deal. The standard is based on the recommendations of the Technical Expert Group on Sustainable Finance.

Once the legislature has approved the Standard, the proposed regulation will set a 'gold' standard for how companies and public authorities can use green bonds to raise funds in capital markets to finance ambitious, large-scale investment projects, while meeting stringent sustainability requirements and protecting investors.

This will be useful for both green bond issuers and investors. For example, for issuers, the Standard will be a powerful tool to demonstrate that they are funding legitimate green projects that are aligned with the EU Taxonomy. And investors purchasing the bonds will be able to more easily evaluate, compare, and trust that their investments are sustainable, thereby reducing the risks posed by 'greenwashing'.
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