Climate Bonds Standard

Climate Bonds Standard

Description

The Climate Bonds Standard is a set of guidelines and environmental standards, adopted by investors and governments, that has been developed to provide the market with the trust and assurance required to achieve scale. It is designed as an easy-to-use tool to assist in the prioritization of investments that truly contributes to addressing climate change. The Climate Bonds Standard is primarily intended to ease decision-making and focus attention on credible climate change solutions in the debt capital markets.

How It Works

The Climate Bonds Standard is made up of two parts; (i) the parent standard detailing management and reporting processes (Climate Bonds Standard V2.1) and (ii) a suite of sector Criteria detailing the requirements assets must meet to be eligible for certification.

Tool Outcome

The Certification Scheme requires issuers to obtain independent verification, pre- and post-issuance, to ensure the bond meets the requirements of the Climate Bonds Standard

Sustainability Criteria

  • Pre-Issuance Requirements:
    • Selection of Nominated Projects & Assets
    • Internal Processes & Controls
    • Reporting Prior to Issuance
  • Post-Issuance Requirements:
    • Nominated Projects & Assets
    • Use of Proceeds
    • Non-Contamination of Proceeds
    • Confidentiality
    • Reporting
    • Climate Bonds Taxonomy
    • Technical Criteria
    • Project Holding
    • Settlement Period
    • Earmarking

Additional Information

  • Users of the tool- Investors, Public Authorities
  • Phase when the tool applies- Finance, Prioritization
  • Geographic application- Projects Worldwide – Not specified