- ESMA proposes new Regulatory Technical Standards to strengthen the credibility of European Green Bond external reviews.
- Rules aim to improve systems, compliance functions, and reliability of information used in green bond assessments.
- Final standards will be submitted to the European Commission by 21 December 2025, following stakeholder feedback due by 30 May 2025.
The European Securities and Markets Authority (ESMA) is pushing forward with critical reforms that will shape the future integrity of the European Green Bond market. The new Consultation Paper details the remaining Regulatory Technical Standards (RTS) under the European Green Bonds Regulation, focused on the role and rigor of external reviewers.
“These technical standards will enhance the robustness and transparency of external reviews of European Green Bonds and in turn boost investors’ confidence that their capital is genuinely driving the green transition,” said ESMA.
Key areas covered in the RTS include:
- Appropriateness, adequacy and effectiveness of systems, resources, and procedures
- Compliance authority and expertise, including access to relevant information
- Administrative and internal control mechanisms, including IT system safeguards
- Quality and reliability of data sources used for assessments
- Application processes for recognition
- Ongoing disclosure of material changes post-registration
RELATED ARTICLE: ESMA Introduces Measures to Enhance Corporate Sustainability Reporting
ESMA is seeking industry input by 30 May 2025, with a Final Report and draft submission to the European Commission due by 21 December 2025. These technical standards will then be subject to a non-objection process by the European Parliament and Council.
“ESMA particularly encourages external reviewers operating during the transitional regime or intending to apply to become an ESMA-registered external reviewer of European Green Bonds to participate in the consultation.”
ESMA is setting the tone for a more credible and transparent European Green Bond market—aiming to reassure investors that ESG capital is aligned with real climate outcomes.
Follow ESG News on LinkedIn
The post ESMA Launches Consultation on Final Technical Standards for European Green Bond External Reviewers appeared first on ESG News.
