European Green Bonds (EuGB): The New Standard is Here

ESMA, the European Securities and Markets Authority, has authorised Anthesis as an external reviewer for the new European Green Bonds (EuGB).

Jonathan Friedman

Partner

Find out more about Anthesis’ role as an Official ESMA and ICMA Reviewer

What are green bonds?
Green bond principles
What the EUGB entails
How Anthesis can help

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In a global context where the fight against climate change and the transition to a low-carbon economy are urgent priorities, sustainable finance has become a key tool. The European Union, aware of its role in this transformation, has taken a decisive step by launching Regulation (EU) 2023/2631, which establishes the framework for the new European Green Bonds (EuGB).

European Green Bonds represent a new benchmark in sustainable finance. They offer issuers and investors greater confidence and clarity regarding the use of funds and associated environmental impacts.

In this article, we analyse what green bonds are, how the new European regulation works, its implications for market participants, and the role of external reviewers like Anthesis in this new framework.

What are Green Bonds?

A green bond is a fixed-income financial instrument whose funds are exclusively used to finance or refinance projects with environmental benefits. These projects can be new or existing, but they must meet specific criteria to be considered “green.”

For a bond to be recognised as green, it must align with the Green Bond Principles (GBP), a set of guidelines promoted by the International Capital Market Association (ICMA). These guidelines aim to ensure transparency, traceability, and integrity in the green bond market through reporting and adequate information disclosure.

Types of Green Bonds

The Green Bond Principles identify an indicative list of categories that can be financed through green bonds. These include:

Renewable energy
Energy efficiency
Pollution prevention and control
Sustainable management of natural resources and land use
Conservation of terrestrial and aquatic biodiversity
Clean transport
Sustainable water and waste water management
Climate change adaptation
Circular economy and clean technologies
Green buildings

This classification is not exhaustive and can be expanded with new activities aligned with environmental objectives.

ICMA Green Bond Principles

Before the introduction of European green bonds, the main reference framework for green bonds was ICMA’s GBP. These principles, which are still relevant, are entirely voluntary but widely adopted in international markets.

With the aim of promoting transparency and accountability, the GBP establish best practices for issuers and helps investors make informed decisions about the environmental impacts of their investments.

What do European Green Bonds imply?

With the entry into force of Regulation (EU) 2023/2631, the European Union has taken a key step towards standardising green bonds by creating the European Green Bonds (EuGB). This new regulation establishes a regulatory framework aligned with the EU taxonomy.

Unlike ICMA’s voluntary principles, the European standard has a legal regulatory framework and is under the direct supervision of the European Securities and Markets Authority (ESMA), an independent EU body tasked with enhancing investor protection and promoting stable and orderly financial markets.

Under this standard, European green bonds must meet the following requirements:

At least 85% of the funds must be allocated to activities that meet the Substantial Contribution and “Do No Significant Harm” (DNSH) criteria defined by the EU Taxonomy.
The remaining 15% may not comply with the Technical Screening Criteria (TSC) (Substantial Contribution + DNSH), provided that these activities do not yet have applicable TSC at the time of issuance.
Issuers must undergo a mandatory external review, both pre- and post-issuance, to verify the bond’s alignment with the regulation’s requirements.

Anthesis: official ESMA and ICMA reviewer

Since June, Anthesis has been included in ESMA’s official list of approved reviewers, allowing it to offer assessments under Regulation (EU) 2023/2631 with the highest standards of independence, transparency, and technical rigour.

In addition, Anthesis is listed as an external reviewer by ICMA, reinforcing its credibility and experience in verifying bonds aligned with the Green Bond Principles, Social Bond Principles , and Sustainability Bond Guidelines .

Advantages of partnering with Anthesis

Competitive advantage in sustainability: Companies that issue bonds under the EuGB framework with Anthesis’s review strengthen their ESG positioning, attracting institutional investors and green funds.
Greater market credibility and trust: Issuing bonds with an external review approved by ESMA or according to ICMA principles increases investor confidence by demonstrating compliance with the highest European and international standards.
Access to a new european standard (EuGB): European Green Bonds represent the new gold standard in sustainable finance. Anthesis enables its clients to access this market with technical and regulatory backing.
Reduced regulatory risks: By working with an approved reviewer, issuers minimise the risk of non-compliance and avoid penalties or regulatory challenges.
Expert support throughout the process: Anthesis offers a comprehensive service that includes technical advice, document review, and strategic support, facilitating the issuance process from design to post-issuance.

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