And as a result of improved regulatory frameworks and standards that increase transparency and accountability, further development of green bonds was strengthened. In the European Union, since 2018, the Green Bond Standard was introduced, making tight criteria that the use of proceeds of a green bond with an issuer must disclose their exact purposes being implemented in such funds. Other governments and regulators followed such moves to have green bond issuances aligned with legitimate environmental goals and prevent "green washing.".
Companies should support environmental effects disclosure through legal support, which has enabled greater transparency. This contributes to the enhancement of investor's confidence on green bonds.
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