The European Central Bank’s vision for green bond standards forgoes inclusivity

The European Central Bank has suggested that the proposed EU Green Bond Standard (EU GBS) become mandatory for all green bonds. Karim Henide disagrees. He writes that the EU GBS is so narrow that only a fraction of the current green bond market is eligible under this standard. Issuers on the margins may not have the capacity to adhere to the degree of ambition and scrutiny expected at the level of the EU GBS label.