Recital 17

(17) Regulation (EU) 2020/852 requires the Union and the Member States to apply the taxonomy requirements to determine whether an economic activity qualifies as environmentally sustainable for the purposes of any measure setting out requirements for financial market participants or issuers in respect of financial products or corporate bonds that are made available as environmentally sustainable. It is therefore logical that the technical screening criteria established by delegated acts adopted pursuant to Regulation (EU) 2020/852 should determine which fixed assets, expenditure and financial assets may be financed with the proceeds of European Green Bonds. In view of the expected technological progress in the field of environmental sustainability, those technical screening criteria are likely to be reviewed and amended over time. Regardless of such changes, in order to provide legal certainty to issuers and investors and prevent amendments to the technical screening criteria from having a negative impact on the price of European Green Bonds that have already been issued, issuers should be able to apply those technical screening criteria that are applicable at the moment of issuance of the relevant European Green Bond when allocating the proceeds of that bond to eligible fixed assets or expenditure. Where the applicable technical screening criteria are amended, the issuer should ensure that unallocated proceeds and proceeds covered by a CapEx plan that have not yet met the taxonomy requirements meet the amended technical screening criteria within seven years. If the issuer considers that an economic activity funded by bond proceeds is at risk of not meeting the amended technical screening criteria within seven years, the issuer should be allowed to publish a plan on how to align the economic activity to the amended technical screening criteria and to mitigate the negative consequences, to the extent possible. That plan should be published before the end of the seven-year period that starts from the amendment of the technical screening criteria and be reviewed by an external reviewer. Under the portfolio approach, issuers should include in their portfolio of fixed assets or financial assets only assets that are aligned with any technical screening criteria applicable at any point during the seven years prior to the publication of the relevant allocation report. Thus, if any asset financed by a European Green Bond is not aligned with the amended technical screening criteria, it should be able to continue to be part of the pool of financed assets for up to seven years.

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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.