The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, initiated a consultation on Draft Regulatory Technical Standards (RTS) regarding the registration and oversight of external reviewers under the EU Green Bond Regulation (EuGB).
ESMA’s suggestions are concerning the registration and monitoring of organizations wishing to become external reviewers of EU Green Bonds and aim to clarify the criteria used to evaluate an application for registration by an external reviewer. In its proposals, ESMA aims to standardize registration requirements and contribute to creating a fair competition through reduced entry costs for applicants.
These pertain to:
- senior management and analytical resources;
- appropriate and careful 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, as well as sustainability assurance providers. ESMA would also like to hear from relevant investors, issuers, and trade associations.
Next steps
The EuGB was enacted on 21 December 2023 and will be effective from 21 December this year.
ESMA will review the feedback received for this consultation and will present the draft RTS and ITSs to the European Commission by 21 December 2024.
