What is the CSRD and who is subject to the reporting duty?

The CSRD obliges companies in stages to sustainability reporting under the ESRS: large capital-market-oriented companies have been reporting since FY 2024, further large companies from FY 2025. Listed SMEs follow from FY 2026 (report 2027) with an optional opt-out until 2028. The Omnibus package (2026) brings further relief and postponed deadlines for smaller companies.

What is a green bond and how large is the market?

A green bond is a bond whose proceeds are used exclusively for climate-friendly projects. The outstanding stock of sustainable bonds in the euro area grows double-digit each year. Issuers benefit from a greenium (interest advantage) of on average 5 to 10 basis points. The dashboard shows the current market volume.

How does an ESG rating affect financing costs?

Companies with an ESG rating of AAA-AA pay 15 to 25 basis points less than the reference rate. BB-rated companies, by contrast, pay 5 to 20 basis points more. On a loan volume of €5m this can be up to €125,000 in interest difference per year.

Dashboard/ESG capital markets

ESG capital markets: green bonds, CSRD & financing

Green capital is growing - and is more affordably accessible for sustainable projects than ever. Regulation and market development at a glance.

Current indicators

Sustainable bonds, euro area

1,740€bn (2025)

+10.1 %vs. previous year

Source: EZB

ESG fund AuM

3.340€bn Europe

+26.0 %vs. previous year

Source: Morningstar Q4 2024

Average greenium

8basis points

+2.0 %2024, vs. previous year

Source: BIS / ECB 2024

EU ETS CO₂ price

75.26EUR/EUA

+13.2 %vs. previous week

Source: Yahoo Finance CO2.L

EU ETS CO₂ price - monthly trend

EUR/EUA (SparkChange Carbon ETC, CO2.L). Source: Yahoo Finance

The CO₂ price is central for assessing fossil-fuel exposure. Rising EUA prices directly raise the cost of Scope 1 emissions and make green investment relatively more attractive.

Sustainable bonds, euro area (outstanding)

Outstanding sustainable debt securities (green, social, sustainability) in €bn. Source: ECB

SFDR Art.8 vs. Art.9 - quarterly flows

Net inflows in €bn. Source: Morningstar

Article 9 (Deep Green) shows persistent net outflows - greenwashing scepticism and a stricter interpretation are weighing on the category. Article 8 (Light Green) is benefiting.

ESG regulation: status & requirements

In force

CSRD

Corporate Sustainability Reporting Directive

Timeline

Staggered from FY 2024; listed SMEs from FY 2026 (report 2027, opt-out to 2028). Omnibus 2026: relief measures

Requirement

Reporting obligation under ESRS, double materiality, external audit. Simplified ESRS for SMEs

Active

EU-Taxonomie

EU Sustainable Finance Taxonomy Regulation

Timeline

Fully applicable since 2024

Requirement

Disclosure of the share of taxonomy-aligned revenues, CapEx and OpEx

Complete

SFDR

Sustainable Finance Disclosure Regulation

Timeline

Since 2021 / Level 2 since 2023

Requirement

Classification of financial products as Art. 6, 8, 9; PAI disclosure

In force

CSDDD

Corporate Sustainability Due Diligence Directive

Timeline

From 2027 (5,000+ FTE / €1.5bn), 2028 (3,000+ / €900m), 2029 (1,000+ / €450m)

Requirement

Due diligence for human rights and environment in the supply chain, climate transition plan, civil liability

In force

EU Green Bond Standard

European Green Bond Standard (EuGB)

Timeline

Regulation since Dec 2023, applicable since 21 Dec 2024

Requirement

Voluntary standard with 100 % taxonomy alignment for proceeds

CSRD market data: European benchmark

Analysed from 1401 public CSRD reports (FY2024) · Source: CSRD report database

Live data

Reports

1,401

CSRD FY2024

Ø renewable share

53.3 %

from 1010 reports

Ø female share

37.7 %

Management/supervisory bodies

CO₂ reporting rate

90 %

1264 of 1401

Sector distribution (top 6)

Financials232

Resource Transformation189

Technology & Communications174

Infrastructure163

Consumer Goods101

Transportation99

Country distribution (top 8)

Germany217France194Italy110Finland106Norway99Netherlands93Sweden76Spain64

Green financing conditions (as of June 2026)

Standard investment loan (house bank)Bundesbank MFI

5.0 to 6.0 %

KfW 270 Renewable Energy StandardKfW

from 3.63 %

KfW 297 Climate-friendly new buildKfW

0.6 to 1.0 %

Green bond (IG, EUR)IG EUR

~4.0 to 4.5 %

NRW.BANK Invest ZukunftNRW.BANK

Market -1.5 %

* Effective APR, depending on credit rating, tenor and collateral. KfW terms as of 29 Jun 2026 (programme 297 improved on 2 Mar 2026).

ESG quality and financing costs

High ESG quality

Green/social bonds, high ESG scores

Tendency towards slightly lower financing costs (typically a few to ~10 to 20 bp advantage in studies)

Medium ESG quality

Average ESG profiles

Little to no deviation from the reference spread

Low ESG quality

ESG downgrades, high emissions, brown sectors

Temporarily ~10 % higher loan spreads; for bonds in energy-intensive sectors additional bp premiums

Sources: ECB Working Paper "Do debt investors care about ESG ratings?" (2023), BIS Quarterly Review "Achievements and challenges in ESG markets" (2021), various empirical studies on ESG and credit costs.

CO₂ intensity of the German power mix

275gCO₂/kWh

13.2 % vs. previous year(previous year: 243 gCO₂/kWh)

2026 · Source: Ember Energy

The CO₂ intensity of electricity is central for Scope 2 emissions. A lower value means: every kWh of on-site power from PV or a heat pump saves more CO₂.

EU benchmark 2030: < 100 gCO₂/kWh.

What does this mean for your financing strategy?

A structured sustainability report delivers a triple return - from the same work.

Companies with a credible ESG profile save measurable interest today - market reality, not a forecast.
Banks and customers ask for sustainability data regardless - for SMEs usually via the voluntary VSME standard, not CSRD.
The triple return: better terms, happier investors and less regulatory risk.

Sources: ECB Occasional Paper 367 "Investing in Europe's green future" (2025); ECB "Climate performance matters for bank credit" (2025).

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