Which standards do issuers of Green bonds often adhere to?

Which standards do issuers of Green bonds often adhere to?

• A. Basel III and IFRS
• B. ISO 14001 and LEED
• C. Green Bond Principles and Climate Bond Standard
• D. MiFID II and EMIR

Answer: (C)

Green bonds rely on recognized guidelines that define how the proceeds are allocated and how impact is verified. The Green Bond Principles lay out the framework for use of proceeds, project evaluation and selection, management of proceeds, and reporting to investors. The Climate Bond Standard provides detailed criteria for what counts as climate-aligned projects and a way to verify their eligibility. Issuers often follow these two standards to ensure credibility and comparability across green bonds. Other options refer to general regulation or environmental management/building standards that don’t govern the specific issuance and verification of green bonds.

Green bonds rely on recognized guidelines that define how the proceeds are allocated and how impact is verified. The Green Bond Principles lay out the framework for use of proceeds, project evaluation and selection, management of proceeds, and reporting to investors. The Climate Bond Standard provides detailed criteria for what counts as climate-aligned projects and a way to verify their eligibility. Issuers often follow these two standards to ensure credibility and comparability across green bonds. Other options refer to general regulation or environmental management/building standards that don’t govern the specific issuance and verification of green bonds.