Creative Commons

This dissertation was written as part of the MSc in Energy Law, Business, Regulation & Policy at the International Hellenic University. The present dissertation deals with the research topic of green bonds and legal framework of issuance according to European standards. A key focus lies on EU Taxonomy Regulation and the new EU Green Bond Framework. This dissertation uses a literature research approach. The great climate change observed in recent years has troubled all social and political actors. Ιn recent years the political debate has shifted to the field of environment and renewable energy. In this context, most countries have taken coordinated action to address the problem through transnational agreements and policies (Council on Foreign Relations, 2021). In this environment, the growth of green bonds began gradually, and their demand is growing exponentially every year, as investors internationally concerned about climate change and prefer to invest in activities and products that contribute to tackling climate change and in the transition to a carbon-neutral economy. However, green bond issuance in the EU currently accounts for only 2.6% of total EU bond issuance. The further development of this market requires the extensive use of an internationally accepted standard in order to have a common language for evaluating and taxonomy activities into green and non-green. The European Union started with the creation of a mechanism - a regulation for the taxonomy of green activities and investments. The creation of this common language was necessary not only to develop the market for green financial products but also to focus available funding on projects and activities with a positive mark in the climate and the environment. The target for zero carbon emissions by 2050 will give the necessary impetus for lending on more favorable terms for green investments. The regulation targets two main areas: Reducing the fragmentation of the use of National or local standards and practices that increase investor skepticism and, secondarily, reducing the phenomenon greenwashing while projects presented as green without covering basic environmental standards. The publication of the classification regulation is an essential tool for the development of the green bond market, which with the development of an acceptable standard can evolve as one of the most efficient and innovative financing tools that will strengthen policies and efforts to address environmental degradation.