EU green standard could stop transition bonds

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EU green standard could stop transition bonds

Toyota Prius hybrid transition car from PA 13Mar20
December 8 2017, Toyota, Japan - Japanese automobile giant Toyota Motor's hybrid vehicle Prius is displayed at the company's Tsutsumi Plant in Toyota city, near Nagoya, central Japan on Friday, December 8, 2017. The plant assembled a total of 1,400 vehicles, mainly Prius and Prius PHV in a day. (Photo by Yoshio Tsunoda/AFLO) LWX -ytd- | Yoshio Tsunoda/AFLO/PA Images

Since the invention of green bonds 13 years ago, market participants have circled round the problem of what is green. There are many answers, such as the Climate Bonds Initiative's standards, but none have any official authority. That is about to change. The EU's Green Bond Standard is likely to become law before the year is out, and it could alter the market in several ways.

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