The European Securities and Markets Authority (ESMA) has launched a consultation on the remaining draft Regulatory Technical Standards (RTS) for external reviewers under the European Green Bonds Regulation.
The consultation paper sets out proposed requirements for external reviewers assessing the environmental credentials of European Green Bonds. These standards cover key aspects such as the adequacy of internal systems, the effectiveness of compliance functions, the reliability of information sources, and the structure and content of recognition applications.
Specifically, the RTS address:
- The appropriateness and effectiveness of systems, resources, and procedures;
- The authority and expertise of compliance functions;
- Administrative and accounting procedures, as well as internal controls and IT safeguards;
- The quality and reliability of data sources used for reviews;
- Application formats and required content for recognition as an external reviewer;
- Procedures for notifying ESMA of significant changes to previously submitted information.
ESMA stated that the technical standards are designed to improve the integrity and transparency of external reviews, ultimately strengthening investor confidence in the European Green Bond market.
“These measures are intended to ensure that capital directed through green bonds is credibly contributing to the green transition,” the regulator said.
This follows ESMA’s initial consultation on RTS for green bond reviewers in early 2024. Feedback on the current consultation is invited until 30 May 2025. ESMA plans to publish a final report and submit the draft RTS to the European Commission by 21 December 2025. The standards will also require the European Parliament and Council’s approval through a non-objection process.
ESMA particularly urges external reviewers currently operating under the transitional regime—or those intending to apply for formal registration—to engage with the consultation process.
