91 CAPITAL MARKETS LAW The GBP does not set clear boundaries as to which projects are green projects, but rating agencies which provide independent analysis, advice, and guidance, may determine which projects are included within the scope of green projects. • Process for project evaluation and selection: According to the GBP, the bond issuer shall inform the investors about the purpose and objectives of the green project, and the category of the green project, which can be environmental, social, or climate change projects. • Management of proceeds: The proceeds of the Green Bond to be issued shall be credited to a special sub-account or sub-portfolio in a transparent manner that can be disclosed to independent advisors, or shall be properly monitored and reported by the issuer. The guide recommends appointing an external reviewer to ensure transparency. • Reporting: The GBP requires that the information flow shall be ensured through annual reports. The annual report should explain how much of the proceeds is allocated to which projects and its impact. Reference is made to the ICMA templates (Impact Reporting Metrics and Databases), which are also used in other guidelines on GBP reporting. Although external review is not obligatory in the guide, it is among the recommended elements. The guidelines recommend carrying out an external review before and after the issuance and publishing these reviews on the relevant web pages. If organizations that are mainly or entirely involved in climate and environmental activities issue bonds that do not align with the four core components of the GBP, investors will need to be informed accordingly and care should be taken to not imply GBP features. Current Developments in European Union Legislation on Green Bonds Currently, the Green Bond market is based on standards and practices defined by market actors’own initiatives, and assurance is provided
RkJQdWJsaXNoZXIy MjUzNjE=