3. Developing Investment Standards in the EU

The chapter discusses the EU's involvement in investment standards development, driven by its commitment to sustainability, market integrity, and mobilizing private capital. It highlights the EU Green Bond Standard as a key example, detailing its technical criteria and the role of the European Taxonomy. The chapter also explores the regulatory framework and disclosure requirements under the Sustainable Finance Disclosure Regulation (SFDR) and the role of the European Securities and Markets Authority (ESMA) in ensuring compliance and transparency. By comparing the EU Green Bond Standard with other frameworks like the ICMA scheme, the chapter offers a nuanced view of the EU's approach to sustainable finance. It concludes by emphasizing the importance of disclosure and transparency in building a resilient financial system.