The European Securities and Markets Authority (ESMA) is enhancing the integrity of the EU Green Bond market through its recent consultation on Draft Regulatory Technical Standards (RTS) for the registration and supervision of external reviewers. Aimed at ensuring the reliable assessment of EU Green Bonds, ESMA’s proposals set forth detailed criteria for evaluating the qualifications of entities seeking to become external reviewers. This initiative is set to standardize the registration process, promoting fairness in the market by reducing entry costs and establishing clear guidelines on management practices, conflict of interest avoidance, and the analytical capabilities of reviewers. The consultation is poised to gather insights from a broad spectrum of stakeholders, including potential reviewers, investors, and issuers, ensuring that the final standards reflect the collective expertise and needs of the sustainable finance community. With the EU Green Bond Regulation coming into effect, this step marks a crucial move towards a transparent and robust framework for green financing in Europe, further solidifying the role of green bonds in financing a sustainable future.
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