ESMA consults on rules for External Reviewers of EU Green Bonds

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today launched a consultation on Draft Regulatory Technical Standards (RTS) related to the registration and supervision of external reviewers under the EU Green Bond Regulation (EuGB).

ESMA’s proposals relate to the registration and supervision of entities interested in becoming external reviewers of EU Green Bonds and aim to clarify the criteria used for assessing an application for registration by an external reviewer. In its proposals, ESMA aims to standardise registration requirements and contribute to developing a level playing field through lower entry costs for applicants.

These relate to:

senior management and analytical resources;
sound and prudent management, including avoidance of conflicts of interest;
knowledge and experience of analysts, and
the outsourcing of assessment activities, forms, templates, and procedures for the provision of registration information.
The Consultation Paper will be of interest to future external reviewers of green bonds and sustainable debt and sustainability assurance providers. ESMA would also like to hear from relevant investors, issuers, and trade associations.

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