Connect with us

World

German auditor queries standards for EU green bonds & More Trending News Today

Published

on

XZRFTYK6PRJLNAOPP7P5BLTLFU

The European Union flags flutter ahead of the gas talks between the EU, Russia and Ukraine at the EU Commission headquarters in Brussels, Belgium September 19, 2019. REUTERS/Yves Herman/File Photo

Register now for FREE unlimited access to Reuters.com

Register

FRANKFURT, June 18 (Reuters) – A German government auditor has criticised the standards used by the European Union for its “green bonds” that aim to help governments and companies finance efforts to combat climate change.

An internal report seen by Reuters said the current rating system used by the German government and EU Commission for sustainable securities “demands more commitment to climate protection from private parties than from themselves.”

It said the criteria set for the bonds are “less ambitious and less transparent” than the benchmarks demanded from private issuers.

Register now for FREE unlimited access to Reuters.com

Register

The lax standards could invite accusations of so-called greenwashing and could “permanently damage the confidence of investors who want to invest capital in a green way,” the German Supreme Audit Institution said in the June 9 report.

Germany’s Finance Ministry and the EU Commission had no immediate comment when contacted by Reuters.

The EU is expected to become one of the biggest issuers of green bonds globally, ramping up sales as part of a multi-billion euro coronavirus recovery fund.

A German parliamentary budget committee will discuss the report on Wednesday and submit recommendations to parliament.

Register now for FREE unlimited access to Reuters.com

Register

Reporting by Marta Orosz; writing by Tom Sims; Editing by Ros Russell

Our Standards: The Thomson Reuters Trust Principles.

Credit Goes To News Website – This Original Content Owner News Website . This Is Not My Content So If You Want To Read Original Content You Can Follow Below Links

Get Original Links Here🡽