The European green bond market is growing quickly though industry-wide standards are still lacking.  But plans to bolster investor protection need to ensure that they do not act as a deterrent to issuers in a similar way to the US.

Last year nearly half of the world’s green bond issuances came from Europe, and five of the top 10 issuing countries were European. Analysis by Standard & Poor’s predicts the global green bond market will increase by 30% in value this year with Europe continuing to be at the forefront.

Earlier this month, the EU said it needs to raise an additional €180 billion ($221 billion) of investment in green infrastructure every year to meet its 2030 climate targets and plans to implement a new EU standard for green bonds to help achieve its target later in the year. The EU High-Level Group on Sustainable Finance has proposed ensuring that funds...