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14 - Integrating Sustainable Finance into the Prospectus Regulation

from Part III - Integrating Sustainability in Financial Markets Regulation

Published online by Cambridge University Press:  30 January 2025

By
Iris Chiu  and
Pierre Schammo
Edited by
Kern Alexander ,
Matteo Gargantini  and
Michele Siri
Kern Alexander
Affiliation:
University of Zurich
Matteo Gargantini
Affiliation:
University of Genoa
Michele Siri
Affiliation:
University of Genoa
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Summary

The question of whether ‘specialist’ securities such as use-of-proceeds green bonds should be subject to a greater level of regulation has attracted considerable attention among policymakers and market actors. Much is at stake, especially because the green bond market has seen significant growth over the years. In this chapter we consider the role that EU prospectus disclosure regulation should play in relation to instruments such as green bonds. We examine the rationale for mandatory prospectus regulation and consider the role played by different market initiatives that have hitherto filled the regulatory gap. We are critical of current practices and argue in favour of mandatory ‘green bond’ prospectus requirements.

Keywords

green bondsprospectus disclosure regulationspecialist securitiesstandardisation of disclosure requirementsgreenwashingprospectus regulationEU regulatory initiative on green bonds
Type
Chapter
Information
The Cambridge Handbook of EU Sustainable Finance
Regulation, Supervision and Governance
 , pp. 381 - 406
Publisher: Cambridge University Press
Print publication year: 2025

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