The green bonds market in the light of European Commission’s proposal: implications for greenwashing liability

Elia Garcia Cerrato, F. Agostini*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapterAcademicpeer-review

Abstract

The chapter discusses the strengths and weaknesses of the European Green Bond Regulation (EUGBR) as a tool to mitigate “greenwashing” risks. It first examines the policy objectives and the core aspects of the initial Proposal for a Regulation and of the European Parliament’s and EU Council’s negotiating positions. The chapter later focusses on the “greenwashing effects” (i.e., the potential adverse impacts of the EUGBR based on environmental and science-based evidence) and on the legal consequences for false and misleading statements on environmental matters (“greenwashing liability”). It concludes that, despite the strong emphasis on “greenwashing” in the preparatory documents and text of the EUGBR, it fails to adequately address this risk. Drawing from the shortcomings, we propose some changes to the review process as well as to external supervision and enforcement mechanisms, which could more effectively assuage “greenwashing” concerns.
Original languageEnglish
Title of host publicationGreening the Bond Market
Subtitle of host publicationEBI Studies in Banking and Capital Markets Law
EditorsDavid Ramos Muñoz, Agnieszka Smoleńska
PublisherPalgrave Macmillan
Pages127-174
ISBN (Electronic)978-3-031-38692-3
ISBN (Print)978-3-031-38691-6
DOIs
Publication statusPublished - 20 Oct 2023
Externally publishedYes

Publication series

NameEBI Studies in Banking and Capital Markets Law
ISSN (Print)2730-9088
ISSN (Electronic)2730-9096

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