Recital 7

(7)The lack of harmonised rules for the procedures used by external reviewers for reviewing environmentally sustainable bonds and diverging definitions of environmentally sustainable activities make it increasingly difficult for investors to effectively compare bonds across the Union with respect to their environmental objectives. The market for environmentally sustainable bonds is inherently international, with market participants trading bonds and making use of external review services from third-party service providers across borders. Action at Union level could reduce the risk of fragmentation of the internal market for environmentally sustainable bonds and bond-related external review services, and aid in the application of Regulation (EU) 2020/852 of the European Parliament and of the Council ⁶ in the market for such bonds.