Updated analysis of the proposals for the EuGB Regulation
Trilogue discussions are beginning between the co-legislators to determine a final text for the Regulation on European green bonds. We strongly support the progress towards a consensus on a voluntary standard, as well as potentially on grandfathering of Technical Screening Criteria of the Taxonomy for the EuGB label.
However, we have real concerns for the success of the EuGB label if proposals for fundamental changes to its legal requirements are taken forward, as they will likely prove impractical and will significantly increase legal liability for issuers. We reiterate our view that the absence of a comprehensive solution to Taxonomy usability issues will considerably limit the potential alignment of green projects. This will also narrow the scope of the future EU GBS. Additionally, we identify unintended barriers for CapEx plan financing.