Recital 16

(16) Certain undertakings that have one or more European Green Bonds on the liability side of their balance sheet may not be able to identify, for each European Green Bond issue, the distinct assets on their balance sheet to which the proceeds of that bond have been allocated. In such cases, undertakings should be allowed to disclose the allocation of the aggregate proceeds of their portfolio of European Green Bonds to a portfolio of environmentally sustainable assets on their balance sheet. Those undertakings should then demonstrate in annual allocation reports that the related environmentally sustainable assets meet the applicable technical screening criteria. In order to ensure that all proceeds of European Green Bonds are allocated to environmentally sustainable economic activities, the undertakings should also demonstrate that the value of those environmentally sustainable assets exceeds or equals the value of European Green Bonds that have not yet matured. When issuers use the portfolio approach, the requirement that bond proceeds are to be allocated only to financial assets that are created earlier than five years after the bond issuance should not apply. To ensure that the information provided remains complete and up to date, an external reviewer should review the annual allocation reports each year, except in cases where no change in allocation is made in the portfolio of assets. That external reviewer should in particular focus on assets that were not included in the previous annual allocation report.

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Source: EUR-Lex (Cellar) · retrieved 2026-11-03 · Text as adopted (Official Journal); later amendments are not incorporated in this text.