Analysis of the European Green Bond Standards : Focusing on the Impact on Domestic Companies

[Purpose] With the establishment of the European Green Bond Standard (EU GBS), Korean companies that have entered or plan to enter the EU market and intend to issue green bonds in the European financial market must consider the implications of EU GBS. This study aims to analyze the potential impacts of EU GBS on Korean companies. [Methodology] This study analyzes the development process and main contents of the EU GBS through a qualitative analysis based on a comprehensive review of EU legislation, international standards on green bonds, and relevant academic literature. [Findings] Under the EU GBS, issuers must allocate at least 85% of the bond proceeds to economic activities aligned with the EU Taxonomy. Issuers are also required to prepare and disclose a Green Bond Factsheet, Allocation Report, and Impact Report. Notably, the Factsheet and Allocation Report must undergo external review by independent reviewers registered with the European Securities and Markets Authority (ESMA). The EU GBS imposes more stringent requirements compared to the widely used ICMA GBP. Therefore, it is crucial for Korean companies to understand the differences between the two standards and select the one that best fits their objectives and circumstances. [Implications] First, Korean firms should deepen their understanding of the EU GBS and EU Taxonomy to strengthen the alignment of their business activities with these frameworks. Second, securing qualified professionals and enhancing internal capabilities is essential to comply with EU GBS requirements. Third, policy and institutional support from the government—such as budget assistance, expert consulting, and practical training—will be necessary for companies issuing green bonds under the EU GBS. Finally, efforts should be made to enhance the alignment between the EU Taxonomy and Korea’s green taxonomy framework.