Because, compared to the aggregate bond market, the green bond market has a lower home bias. It shows a higher degree of integration. And euro area green bonds are held cross-border twice as likely as other bonds. Green investment funds also have a more stable and committed investor base.
And so, if green capital markets were to deepen further, sustainable finance could help advance financial integration in the European Union. And remove the legal impediments for developing a CMU. Of course, we need to ensure that the fragmentation in underlying capital market structures and the lack of green bond standards does not change these positive developments.