FRANKFURT, June 18 (Reuters) – A German government auditor
has criticised the standards used by the European Union for its
“green bonds” that aim to help governments and companies finance
efforts to combat climate change.
An internal report seen by Reuters said the current rating
system used by the German government and EU Commission for
sustainable securities “demands more commitment to climate
protection from private parties than from themselves.”
It said the criteria set for the bonds are “less ambitious
and less transparent” than the benchmarks demanded from private
issuers.
The lax standards could invite accusations of so-called
greenwashing and could “permanently damage the confidence of
investors who want to invest capital in a green way,” the German
Supreme Audit Institution said in the June 9 report.
Germany’s Finance Ministry and the EU Commission had no
immediate comment when contacted by Reuters.
The EU is expected to become one of the biggest issuers of
green bonds globally, ramping up sales as part of a
multi-billion euro coronavirus recovery fund.
A German parliamentary budget committee will discuss the
report on Wednesday and submit recommendations to parliament.
(Reporting by Marta Orosz; writing by Tom Sims; Editing by Ros
Russell)
Read More: German auditor queries standards for EU green bonds