This thesis presents a detailed analysis of the European Green Bond Standard (EU GBS) establishment between March 2019 and June 2019. Within the literature on policy failures, regulatory capture is...Show moreThis thesis presents a detailed analysis of the European Green Bond Standard (EU GBS) establishment between March 2019 and June 2019. Within the literature on policy failures, regulatory capture is seen as one of the leading causes of policymaking failure. For decades, scholars have discussed the influence of private actors on policymaking. However, the private sector's tools, especially the finance sector, exerts influence on global financial regulation are not empirically analyzed in this context. This research contributes to the literature by examining the impact of public lobbying on sustainability policy's finance sector. It does so by investigating the public lobbying success of the following mechanisms: 1) structural power, 2) technical information, 3) salience, and 4) revolving doors. The researcher examines these mechanisms by analyzing reports and consultations related to the EU GBS. This research finds that indirect regulatory capture occurred. Financial sector interests were primarily defended because of institutional arrangements and the pivotal position of finance to realize the EU GBS. The analysis shows that financial regulation, especially if it concerns sustainability, is a complicated process in which bridging the gap between the public interest and the willingness of the financial sector to cooperate is challenging. The author concludes that although the background conditions for regulatory capture were present, these are not sufficient to showcase regulatory capture in this case. Accordingly, based on a content analysis and public lobby analysis, one cannot attribute capture to the finance industry. Altogether, the conclusion will provide an answer to the question if and how the finance sector conducted regulatory capture and if this affected the policy outcome of the EU GBS in terms of sustainabilityShow less
