Former Bank of England governor Mark Carney has reiterated that the EU Taxonomy for Sustainable Activities remains "quite proscriptive" despite recent revisions, while he is optimistic it will become richer through the addition of transition activities in the future.
Partial alignment with the EU Taxonomy by some international peers may be the most investors can expect in the future, although the European Commission will promote international convergence on 'green' standards.
Countries are announcing a string of multi-billion dollar stimulus packages to support their economies amid the disruption caused by the coronavirus pandemic, but pressure is building on them to demonstrate a commitment to the green economy.
The International Capital Market Association (ICMA) believes the EU Taxonomy for Sustainable Activities will become a key reference as the green bond market moves beyond its current use of proceeds focus.
After a torrid 2018 green, social and sustainability bond funds experienced a stronger performance in 2019, off the back of a rallying fixed income market. But performances were highly variable, reports Ahren Lester.