EIB Makes Climate Finance Mainstream as Taxonomy Unlocks Standards

The EIB has launched a Climate Awareness Bond in project areas that substantially contribute to climate change mitigation, in response to market demand and to recognize progress with the EU Taxonomy. Sustainability Awareness Bonds issued by the EIB are directly linked to evolving EU legislation on sustainable finance as it anticipates the adoption of the EU Green Bond Standard. Climate finance has become central to the EIB as it has strengthened green finance capacities for the front office and operationalized its climate policy framework throughout the organization. Nancy Saich, EIB’s Chief Climate Change Expert, notes “The EU Taxonomy is the first substantial attempt to define green finance and to lay down some really quite clear criteria that the market can use. It doesn’t dictate that every green product has to use the taxonomy; what the EU is saying is for every green product being sold you have to say how much aligns with the taxonomy.”