Alignment with EU Taxonomy Regulation & EU Green Bond Standard
In November 2020, the EIB Board of Directors approved the Climate Bank Roadmap 2021-2025 (CBR), which sets out in detail how the EIB Group aims to support the objectives of the European Green Deal. Among other things, the EIB Group plans to gradually increase the share of green financing, which means financing dedicated to climate action and environmental sustainability, to exceed 50% of new annual operations by 2025.
The CBR further states that the EIB intends to:
- align its tracking methodology for green finance with the EU Taxonomy. Such migration will include the application of the Taxonomy’s logic and structure related to related to determining a substantial contribution to the six environmental objectives, doing no significant harm to any of the six objectives and meeting minimum social safeguards,
- reflect such alignment to capital markets via extension of CAB and SAB-eligibilities,
- gradually align CABs and SABs with the proposed EU Green Bond Standard as retained and over time amended by the European Commission.
In anticipation of these plans, EIB already adopted in 2018 new CAB & SAB documentation that is tuned to evolving EU legislation on sustainable finance, including the EU Taxonomy Regulation. Social objectives under the SAB are defined by the EIB until extension of the Taxonomy Regulation to social sustainability objectives. Proceeds will be allocated to EIB’s lending activities in alignment with the logic* of the EU Taxonomy.
More details are available in the 2020 SAB Framework.
* Our CAB/SAB project eligibility criteria are structured to include criteria or processes for the assessment of “substantial contribution”, “no significant harm”, and “minimum social safeguards”.