Climate Bonds Standard
Version 3.0
International best practice for labellinggreen investments
Certification under the Climate Bonds Standard confirms that the bond, loan or other debt instrument is:

<2C

1

2

3

Fully aligned with theGreen Bond Principles and/or
the Green Loan Principles

Using best practice forinternal controls, tracking,reporting and verification

Financing assets consistent
with achieving the goals of theParis Climate Agreement

Climate Bonds Initiative, December 20191

Climate Bonds Standard Version 3.0

Table of Contents
Introducing the Climate Bonds Standard & Certification Scheme 3
Definitions 8
Climate Bonds Standard 12

Part APart B

Pre-Issuance Requirements 12

Post-Issuance Requirements 16

1. Use of Proceeds 12

5. Use of Proceeds 16

2. Process for Evaluation and Selection of
Projects & Assets 13

6. Process for Evaluation and Selection of
Projects & Assets 17

3. Management of Proceeds 14

7. Management of Proceeds 17

4. Reporting Prior to Issuance 14

8. Reporting 18

Part CPart D

Eligibility of Projects & Assets 22

Certification under the
Climate Bonds Standard 23

9. Climate Bonds Taxonomy 22
10. Sector Eligibility Criteria 22

Outline of the Certification Process 23
Pre-Issuance Certification 24
Post-Issuance Certification 26
Programmatic Certification 28
Maintaining Certification 28

Annex 1:

Annex 3:

Bonds, loans and other debt instruments
which can be Certified 30

Certification and the CBI Green Bond
Database Methodology 33

Annex 2:Compatibility between CBS V3.0 andproposed EU Green Bond Standard 32
Disclaimer: The information contained in this communication does not constitute investment advice in any form andthe Climate Bonds Initiative is not an investment adviser. Any reference to a financial organisation or debt instrument orinvestment product is for information purposes only. Links to external websites are for information purposes only. The
Climate Bonds Initiative accepts no responsibility for content on external websites.
The Climate Bonds Initiative is not endorsing, recommending or advising on the financial merits or otherwise of any debt
instrument or investment product and no information within this communication should be taken as such, nor should
any information in this communication be relied upon in making any investment decision.
Certification under the Climate Bond Standard only reflects the climate attributes of the use of proceeds of a designateddebt instrument. It does not reflect the creditworthiness of the designated debt instrument, nor its compliance withnational or international laws.
A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind, for any investment
an individual or organisation makes, nor for any investment made by third parties on behalf of an individual or organisation,
based in whole or in part on any information contained within this, or any other Climate Bonds Initiative public communication.

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Introducing the Climate Bonds Standard& Certification Scheme
The Climate Bonds Initiative is an international investor-focused not-for-profit
organisation. It was founded in 2010 to promote large-scale investments that will
deliver a low-carbon and climate-resilient global economy. Climate Bonds seeks tomobilise investors, industry and government to catalyse green investments at the speed
and scale required to avoid dangerous climate change and meet the goals of the Paris
Climate Agreement.
A key component of the Initiative is the Climate Bonds Standard & Certification Scheme“Certification Scheme”. The Certification Scheme allows investors, governments
and other stakeholders to identify and prioritise ‘low-carbon and climate resilient’
investments and avoid ‘greenwash’.
What does the Certification mark mean?
Certification under the Climate Bonds Standard confirms that the bond, loan or otherdebt instrument is:

<2C

1

2

3

Fully aligned with theGreen Bond Principles
and/or the Green Loan
Principles

Using best practice forinternal controls,
tracking, reporting andverification

Financing assets
consistent
with achieving thegoals of the Paris
Climate Agreement

The Climate Bonds Standard & Certification Scheme aims to provide the green bondmarket with the trust and assurance that it needs to achieve scale. Activating themainstream debt capital markets to finance and refinance climate-aligned projects andassets is critical to achieving international climate goals and robust labelling of green
bonds and green loans is a key requirement for that mainstream participation.
While the green finance market continues to grow at pace, future growth relies onmaintaining the value of the green label. The green label is underpinned by trust andconfidence that the use of funds will be directed to projects and assets that are in linewith the Paris Climate Agreement. Investor capacity to assess green credentials is,however, limited, especially in the fast-paced bond/loan market.

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A Scientific Framework underpins the definitions of which projects and assets are
consistent with achieving the goals of the Paris Climate Agreement and therefore
eligible for inclusion in a Certified Climate Bond, Certified Climate Loan or Certified
Climate Debt Instrument. The Certification Scheme includes robust approach formonitoring, reporting and assurance of conformance with the Climate Bonds Standard.
An international Climate Bonds Standard Board comprised of large institutional investors
and leading environmental NGOs provides ongoing oversight of the Climate Bonds Standard,
Approved Verifiers, the Certification Scheme as well as decisions on Certifications. Day-to-day
operations and decision making is delegated to the Climate Bonds Standard Secretariat.
Certification under the Climate Bond Standard relates exclusively to the climate
attributes of the bond, loan or other debt instrument, and does not address any otheraspect of investment decision-making such as compliance with national or internationallaws and/or regulations, broader Environment, Social and Governance (ESG) attributes,
or creditworthiness.
The Climate Bond Certified Mark “Certification Mark” is used to designate Certified
Climate Bonds, Certified Climate Loans and Certified Climate Debt Instruments.
The Climate Bonds Standard & Certification Scheme builds on the broad integrity
principles contained in the Green Bond Principles2 to create a robust, flexible andeffective certification system. Key features include:• Full alignment with the Green Bond Principles,Green Loan Principles,3 the proposed EU Green
Bond Standard, ASEAN Green Bond Standards,4Japan’s Green Bond Guidelines5 and India’s
Disclosure & Listing Requirements for Green Bonds6• Clear mandatory requirements for use ofproceeds, selection of projects & assets,management of proceeds and reporting• Sector criteria for determining the low-carbon andclimate resilient credentials of projects and assets• An assurance framework with independent
verifiers and consistent procedures• Certification awarded by the Climate Bonds Standard Board• Certification is confirmed after issuance of the bond or loan with mandatory

independent verification and annual reporting for the term of the investment

For investors, Certification is a screening tool that labels bonds or loans as Certified
Climate Bonds, Certified Climate Loans or Certified Climate Debt Instruments
respectively. It reduces the burden for investors having to make subjective judgements
during their due diligence on the green attributes of green-labelled investments.
For issuers, Certification is a voluntary initiative, which allows them to clearly demonstrate
to the market that their bond or loan meets science-based standards for climate integrity,and best practice standards for management of proceeds and transparency.

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Key Components
The Climate Bonds Standard & Certification Scheme comprises of the overarching
Climate Bonds Standard Version 3.0 (this document), the Climate Bonds Taxonomy,
Sector Eligibility Criteria, guidance material and certification documents.
The Climate Bonds Taxonomy7 is the high-level roadmap for the relevant sectors.
It forms the basis of the Climate Bonds green bond database methodology, usedby Climate Bonds to assess the climate alignment of all green bonds (certified or
uncertified) for inclusion in the database, which is then used by index providers, analysts
and other market players.
The Sector Eligibility Criteria are science-based and provide detailed definitions forthe eligibility of specific projects and assets. The criteria ensure that projects & assets
are consistent with achieving the goals of the Paris Climate Agreement and the rapidtransition to a low-carbon & climate resilient future.
Technical Working Groups and Industry Working Groups provide the expertise forthe development of the Sector Eligibility Criteria. The Climate Bonds Standard Board
provides governance and oversight of the Standard and the Certification process.
Approved Verifiers provide independent assurance that issuers and their certified
bonds or loans have met the requirements of the Standard.
Ongoing Reporting
All issuers are required to report annually to maintain the Certification of the bond, loan
or other debt instrument. The exact nature of the reporting is dependent on the range ofunderlying projects and assets, and on the issuer’s choices.
Reporting to maintain Certification is split into three types: Allocation reporting,
Eligibility reporting, and Impact reporting.
• Allocation reporting is confirming the allocation of bond proceeds to eligible projects
and assets, and is mandatory for all Certified debt instruments;• Eligibility reporting is confirming the characteristics or performance of projects
and assets to demonstrate their eligibility under the Taxonomy and relevant Sector
Eligibility Criteria and is mandatory for all Certified debt instruments.
• Impact reporting is disclosure of metrics or indicators which reflect the expected or
actual impact of eligible projects and assets, and is encouraged for all Certified debt
instruments, but is not mandatory.
• The three different types of reporting can be included in a single Update Report whichmust be provided annually while the bond, loan or other debt instrument remains
outstanding.
We note that alignment with Sector Eligibility Criteria already provides investors withconfidence that the investment is aligned with goals of the Paris Climate Agreement.
Given this feature of the standard, the need for detailed and quantitative impact
reporting is reduced and often is not necessary. Specific recommendations on impact
reporting are provided in a document developed by the Green Bond Principles (GBP)
working group on impact reporting, available from the GBP website.8

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How Certification works
The requirements of the Climate Bonds Standard are separated into the two distinct
phases of issuing a bond or closing a loan or other debt instrument:
1. Pre-Issuance Requirements which need to be met for issuers seeking certificationahead of issuance,
2. Post-Issuance Requirements which need to be met by issuers seeking ongoingcertification following the issuance.
Certification is also available for bonds, loans or other debt instruments which havealready been issued or closed. In these cases, issuers only need to meet the PostIssuance Requirements of the Standard. Issuers can apply for Certification at any time
while the debt instrument is outstanding.
Programmatic Certification is available for frequent issuers of Certified deals. This
option increases the flexibility and reduces the verification burden for issuers with large
scale or longer term green bond or sustainable finance programs.
Verification by an Approved Verifier is mandatory in the Certification process. Ongoing
Certification includes requirements for annual reporting with public disclosure.
The Climate Bonds Standard is a climate change standard. It is an authoritative standard
that eases decision-making and focuses attention on credible climate change solutionsin the debt capital markets.
Resources for the user of the Standard
All relevant resource documents for the use of the Standard are available on the website
link: https://www.climatebonds.net/certification/resources
Climate Bonds Initiative website: https://www.climatebonds.net
Contact Certification team at: certification@climatebonds.net

1. The Paris Climate Agreement is an international agreement within the United Nations Framework Convention on Climate Change which entered into effect in November 2016
and will commence in 2020. The goals of the agreement include: “(a) Holding the increase in the global average temperature to well below 2 °C above pre-industrial levels; (b)Increasing the ability to adapt to the adverse impacts of climate change; (c) Making finance flows consistent with a pathway towards low greenhouse gas emissions and climateresilient development.”
2. Green Bond Principles (GBP) are voluntary process guidelines intended for broad use by the market that recommend transparency and disclosure, and promote integrity in thedevelopment of the Green Bond market. The latest edition of the GBP is available from the International Capital Markets Association website (www.icmagroup.org/greenbonds).
3. Published by the Loan Market Association (www.lma.eu.com)
4. Developed by the ASEAN Capital Markets Forum (www.theacmf.org)
5. Published by The Ministry of the Environment, Japan and can be retrieved at: http://www.env.go.jp/en/policy/economy/gb/guidelines.html
6. Published by the Securities & Exchange Board of India (www.sebi.gov.in) and can be retrieved at: https://www.sebi.gov.in/sebi_data/meetingfiles/1453349548574-a.pdf
7. https://www.climatebonds.net/standard/taxonomy
8. https://www.icmagroup.org/green-social-and-sustainability-bonds/impact-reporting/6

Climate Bonds Standard Version 3.0

Green Bonds

A Bridge to the SDGs

Climate
Adaptation

Climate mitigation andadaptation underpin
meeting the UN Sustainable
Development Goals
All the goals areunderpinned by a series oftargets, some financial andsome outcome based aspart of the 2030 Agenda.

ClimateMitigation

Green
Investment
Our analysis of green bondinvestment has led Climate
Bonds to identify six out of
the seventeen SDGs where
increased green investment
and growth in green bondmarkets provides direct
benefits, particularly inemerging economies.

GREEN
BONDS
Growth inGreen Bond
MarketsSix SDGs that receive thelargest boost from green
bonds: 6, 7, 9, 11, 13 & 15.

SDGs that receive the largest boost from green bonds

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Definitions
D1. Bonds, loans and other debt instruments
D1.1 Green Bond, Green Loan or Green Debt Instrument: A bond, loan or other debt
instrument where the proceeds will be exclusively applied to finance or re-finance, inpart or in full, new and/or existing eligible green projects, and which is aligned withthe four core components of the Green Bond Principles or the Green Loan Principles.
A Green Bond, Green Loan or Green Debt Instrument should not be considered
fungible or interchangeable with bonds, loans or other debt instruments which are notaligned with those four core components.
D1.2 Certified Climate Bond or Certified Climate Loan or Certified Climate Debt
Instrument: A green bond, green loan or other green debt instrument that is Certified
by the Climate Bonds Standard Board as meeting the requirements of this Climate
Bonds Standard.
The term “Bond” is used in this Standard to describe the debt instrument being considered
for Certification whether that be structured as a bond or a loan or some other form of debt
instrument. Further detail on the types of bonds, loans and other debt instruments which
can be Certified under the Climate Bonds Standard is provided in Annex 1.
D2. Standard, certification and structures
D2.1 Climate Bonds Standard: The requirements and eligibility criteria for Climate
Bond Certification, based on the current version as published on the Climate Bonds
Initiative resources webpage.
D2.2 Climate Bonds Standard Board: A board of independent members thatapproves the Standard, Sector Eligibility Criteria and Verifiers, and considers
applications for Certification under the Climate Bonds Standard.
Note: The Climate Bonds Standard Board is constituted, appointed and supported in linewith the governance arrangements and processes as published on the Climate Bonds
Initiative website.
D2.3 Climate Bonds Standard Secretariat: Manages the day-to-day interaction withissuers, verifiers and other stakeholders.
Note: Contact details for the Climate Bonds Standard Secretariat are available on the
Climate Bonds Initiative website. Enquiries can be sent via email to certification@
climatebonds.net.
D2.4 Certification under the Climate Bonds Standard: Allows the Issuer to use theCertification Mark in relation to that bond, loan or other debt instrument. Certification
is provided once the Climate Bonds Standard Board is satisfied the bond, loan orother debt instrument conforms to the relevant requirements of the Climate Bonds
Standard.
D2.5 Certification Mark: The certification logo designating a Certified Climate
Bond or Certified Climate Loan or Certified Climate Debt Instrument that Issuers
may use once they have obtained Certification from the Climate Bonds Standard
Board. Use of the logo by an Issuer is specified within the terms and conditions of
the Certification Agreement.

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D3. Issuer, projects & assets
D3.1 Issuer: The organisation issuing the bond or other debt instrument; or the
borrower and other obligors taking out the loan or other debt instrument, or thefinancial institution receiving designated deposits. In some circumstances, particularly
for portfolios of smaller loans, the lender may take on the role of Issuer in terms ofmeeting requirements of creating the Green Bond Framework, defining selection
criteria, pre-issuance documentation and update reporting.
D3.2 Issuance: The date of issuance for a bond or closing of a loan or other debt instrument.
D3.3 Eligible Projects & Assets: Parts or collections of:D3.3.1 Physical assets or projects owned by the Issuer, and/or
D3.3.2 Debt or other financing arrangements provided by the Issuer to financeprojects or physical assets, and/or
D3.3.3 Related and supporting expenditures for projects or physical assets, where
the projects or physical assets meet the relevant Sector Eligibility Criteria provided
in Part C of the Climate Bonds Standard.
D3.3.4 Physical assets or projects include:D3.3.4.1 Physical assets: existing and operational equipment, machinery,
infrastructure, buildings or land;
D3.3.4.2 Projects: equipment, machinery, infrastructure and/or buildings inconstruction, redevelopment, (upgrades, expansion) and similar asset value
creation or enhancement activity;
D3.3.5 Debt or other financing arrangements provided to finance projects orphysical assets include:D3.3.5.1 Capital expenditure undertaken to increase the value and/or lifetime of thephysical assets or projects
D3.3.5.2 Acquisition costs/purchase price for an entity (company, divisionor similar) which holds physical assets or projects or share thereof whichapproximately corresponds to the Market Value of the physical asset or projects
holdings; andD3.3.5.3 Leasing structures resulting in Right of Use assets and liabilities9 andlong leaseholds on land, buildings and infrastructure
D3.3.5.4 Loans and mortgages;
D3.3.5.5 Subsidies, tax and other incentives, credit schemes and grants, andother similar arrangements provided by public entities or agencies, including
local and national governments.
D3.3.6 Related and supporting expenditure include:D3.3.6.1 Relevant installation and routine maintenance expenditure andupgrades undertaken to maintain the value and/or lifetime of the asset;

9. https://www.ifrs.org/issued-standards/list-of-standards/ifrs-16-leases/

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D3.3.6.2 Relevant performance monitoring costs with respect to tracking climate
credentials (e.g. GHG emissions) and climate information services (e.g. satellite
monitoring and emissions testing)D3.3.6.3 Relevant research and development. training and program implementation
costs and expenditures, where there is a definable future asset, product and/or
process that can be linked to climate benefits under the relevant Sector Criteria.
D3.4 Nominated Projects & Assets: Eligible Projects & Assets that are associatedwith the bond, loan or other debt instrument. These projects or physical assets may
be existing, under construction or yet to be deployed.
D3.5 Net Proceeds: The amount equal to the gross proceeds of the bonds, loans orother debt instruments minus issuance costs.
D3.6 Market Value: The price at which an asset would change hands between awilling buyer and a willing seller, neither being under any compulsion to buy or to selland both having reasonable knowledge of relevant facts. This term is usually definedby convention within the relevant jurisdiction. It is sometimes called Fair Market
Value, Market Value, or Fair Value, depending on the context.
D4. Issuer documentation
D4.1 Green Bond Framework: Information provided by the issuer which describes
how the requirements in the Climate Bonds Standard will be met by the issuer forthe relevant bond, loan or other debt instrument, or program of bonds, loans or otherdebt instruments. This information is often presented using the five core componentsof the Green Bond Principles (use of proceeds, selection of projects & assets,management of proceeds, reporting, and external review). The contents of the Green
Bond Framework are further defined in clause 4.1.
Note 1: The Green Bond Framework is an important part of the Certification Process. It is
the primary reference for the verifier when undertaking the verification process and must be
provided to the Climate Bonds Standard Board as one of the certification documents. See
Part D of the Climate Bonds Standard for further detail on how the Green Bond Framework
document is used in the Certification Process.
Note 2: Issuers are required to disclose their Green Bond Frameworks or relevant summaries to themarket. This is in line with market best practice and also enables Certified Bonds to be eligible for key
market indices, green bond funds and regional standards such as the proposed EU Green Bond Standard.
Note 3: Examples of Green Bond Framework documents are available on the Climate Bonds
Initiative website.
D4.2 Disclosure Documentation: Documentation associated with the issuance of abond, loan or other debt instrument; that is prepared before a bond, loan or other debt
instrument is issued or entered into; and is made available to potential investors.
For bond issuance this includes legal documentation such as the Prospectus or the Final Terms.
Note: This documentation is usually required by the relevant financial regulatory body in thejurisdiction where the bond, loan or other debt instrument is being offered and may include
items such as a prospectus, term sheet, offering, indenture contract, official bond statement, or
legal documentation. In some jurisdictions this also includes marketing materials for the deal.

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D4.3 Update Report: A document prepared by the issuer that confirms the ongoing
conformance of the issuer and the relevant bond, loan or other debt instrument, or
program of bonds, loans or other debt instruments with the Post-Issuance Requirementsof the Climate Bonds Standard. Update Reports contain three different types of reporting:D4.3.1 Allocation Reporting – confirming the allocation of Net Proceeds to
Nominated Projects & Assets;
D4.3.2 Eligibility Reporting – confirming, where required by relevant Sector
Eligibility Criteria, the characteristics or performance of Nominated Projects &Assets required to conform to the relevant eligibility requirements under Part C of
the Climate Bonds Standard.
D4.3.3 Impact Reporting – disclosure of metrics or indicators which reflect the
expected or actual impact of Nominated Projects & Assets.
Note 1: The format and frequency of the Update Report will depend on the specificcircumstances of the issuer and the relevant bond, loan or other debt instrument, or program.
Further detail on the Update Report is provided in clause 8 of the Climate Bonds Standard. A
suggested template for Update Reports is available on the Climate Bonds Initiative website.
Note 2: The proposed EU Green Bond Standard identifies two types of reporting;
Allocation Reporting and Impact Reporting. The EU GBS definition of Impact Reporting
includes the Climate Bonds Standard definitions of Eligibility and Impact Reporting.
D4.4 Climate Bond Information Form: A template document to be completed by
the Issuer and submitted to the Climate Bonds Standard Secretariat as part of theCertification Process.
Note: The Climate Bond Information Form is available from the Climate Bonds Initiative
website. The form is used and updated throughout the Certification Process
D4.5 Certification Agreement: A legal agreement which must be executed by the Issuer
and submitted to the Climate Bonds Standard Board as part of the Certification Process.
Note: The Certification Agreement is available from the Climate Bonds Initiative website andincludes terms and conditions for use of the Certification Mark. Adjustments to the templateagreement can be negotiated directly with the Climate Bonds Standard Secretariat.
D5. Approved Verifiers
D5.1 Verifier: An independent third-party assurance provider or auditor, which has
been approved by the Climate Bonds Standard Board and is listed on the Climate
Bonds Initiative website as an Approved Verifier.
D5.2 Verifier’s Report: A report prepared by the Verifier and provided by the Verifierto the Issuer. The Verifier’s Report is then provided to the Climate Bonds Standard
Secretariat as part of the Certification Process. The Verifier’s Report must be preparedin line with the Guidance for Verifiers which is available from the Climate Bonds
Initiative website.

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Climate Bonds Standard
The Climate Bonds Standard sets out the requirements to be met for Issuers seeking
Certification of a bond, loan or other debt instrument. The requirements are separated into
Pre-Issuance Requirements and Post-Issuance Requirements.
The Pre-Issuance Requirements need to be met by Issuers seeking Certification priorto Issuance. Post-Issuance Requirements need to be met by Issuers seeking continued
Certification following Issuance of the bond, loan or other debt instrument.
In this document, there are some words with very specific meanings, which follows theconventions associated with development of international standards. The word “shall”
indicates that a requirement must be met for Certification to be awarded. The word “should”
indicates a recommendation; “may” indicates a permission; “can” indicates a possibility or acapability. “Note” is for guidance in understanding or clarifying the associated requirement.
The word “Bond” is used in the requirements to represent a bond, loan or other debt
instrument.

Part A: Pre-Issuance Requirements
This section of the Climate Bonds Standard sets out the requirements that apply
to all Certified Climate Bonds, Certified Climate Loans and Certified Climate
Debt Instruments prior to the issuance or closing of the bond, loan or other debt
instrument. These requirements are designed to ensure that:• the Issuer has established appropriate internal processes and controls prior toissuance or closing of the bond, loan or other debt instrument; and• these internal processes and controls are sufficient to enable conformance with the

Climate Bonds Standard after the bond, loan or other debt instrument has been issued
or has closed, and allocation of the proceeds is underway; and• the Issuer has provided a Green Bond Framework document which confirms its

conformance with the Pre-Issuance Requirements of the Climate Bonds Standard.

For Issuers seeking Pre-Issuance Certification of their bond, loan or other debt
instrument, all requirements set out in this section shall be met.
1. Use of Proceeds
1.1. The Issuer shall document the Nominated Projects & Assets which are proposed
to be associated with the Bond and which have been assessed as likely to be Eligible
Projects & Assets. The Issuer shall establish a list of Nominated Projects & Assets
which can be kept up-to-date during the term of the Bond.
1.2. The expected Net Proceeds of the Bond shall be no greater than the Issuer’s total
investment exposure to the proposed Nominated Projects & Assets, or the relevant
proportion of the total Market Value of the proposed Nominated Projects & Assets
which are owned or funded by the Issuer.
Note: The Issuer may choose whether to use its investment exposure or debt obligation to
the Nominated Projects & Assets or their Market Value when satisfying Clause 1.2.

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1.3. Nominated Projects & Assets shall not be nominated to other Certified Climate
Bonds, Certified Climate Loans, Certified Climate Debt Instruments, green bonds, green
loans or other labelled instruments (such as social bonds or SDG bonds) unless it isdemonstrated by the Issuer that:
1.3.1 distinct portions of the Nominated Projects & Assets are being funded bydifferent Certified Climate Bonds, Certified Climate Loans, Certified Climate Debt
Instruments, green bonds , green loans or other labelled instruments; or,
1.3.2 the existing Certified Climate Bond, Certified Climate Loan or Certified
Climate Debt Instrument is being refinanced via another Certified Climate Bond,
Certified Climate Loan or Certified Climate Debt Instrument.

2. Process for Evaluation and Selection of Projects & Assets
2.1. The Issuer shall establish, document and maintain a decision-making process
which it uses to determine the eligibility of the Nominated Projects & Assets. The
decision-making process shall include, without limitation:
2.1.1. A statement on the climate-related objectives of the Bond;
2.1.2. How the climate-related objectives of the Bond are positioned within thecontext of the Issuer’s overarching objectives, strategy, policy and/or processes
relating to environmental sustainability;
2.1.3. The Issuer’s rationale for issuing the Bond;
2.1.4. A process to determine whether the Nominated Projects & Assets meet theeligibility requirements specified in Part C of the Climate Bonds Standard.
Note to 2.1: A wide variety of climate-related objectives are possible. These can vary fromincreasing the installed capacity of low carbon assets, such as solar power facilities, tohaving a specific objective focused on the operations or indirect effects of the projects &assets, such as emissions reductions.
The climate-related objectives of the Bond, as stated by the Issuer, have implications forthe reporting requirements under the Climate Bonds Standard. See Clauses 2.3, 5.2, 5.8,
6.1.1 and 8.4.
2.2. The Issuer should include under Clause 2.1 further aspects of the decision-making
process, including:
2.2.1. related eligibility criteria, including, if applicable, exclusion criteria or any
other process, applied to identify and manage potentially material environmental,social or governance risks associated with the Nominated Projects & Assets.
2.2.2. any green standards or certifications referenced in the selection ofNominated Projects & Assets.
2.3. The Issuer shall assess that all proposed Nominated Projects & Assets to be
associated with the Bond meet the documented objectives as stated under Clause
2.1.1 and are likely to conform to the relevant eligibility requirements under Part C of
the Climate Bonds Standard.

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3. Management of Proceeds
3.1. The systems, policies and processes to be used for management of the Net
Proceeds shall be documented by the Issuer and disclosed to the Verifier, and shall
include arrangements for the following activities:
3.1.1. Tracking of proceeds: The Net Proceeds of the Bond can be credited to a
sub-account, moved to a sub-portfolio, or otherwise tracked by the Issuer in an
appropriate manner and documented.
3.1.2. Managing unallocated proceeds: The balance of unallocated Net Proceeds
can be managed as per the requirements in Clause 7.3.
3.1.3. Earmarking funds to Nominated Projects & Assets: An earmarking process
can be used to manage and account for funding to the Nominated Projects &Assets and enables estimation of the share of the Net Proceeds being used forfinancing and refinancing.
4. Reporting Prior to Issuance4.1. The Issuer shall prepare a Green Bond Framework and make it publicly available
prior to Issuance or at the time of Issuance. The Green Bond Framework shall include,
without limitation:
4.1.1. Confirmation that the Bonds issued under the Green Bond Framework arealigned with the Climate Bonds Standard. This may include statements of alignment
with other applicable standards, such as the EU Green Bond Standard, the ASEAN
Green Bond Standard, Chinese domestic regulations, Japanese Green Bond
Guidelines, etc.;
4.1.2. A summary of the expected use of proceeds, as defined under Clause 1.1,
and the expected contribution of the relevant sectors or sub-sectors to the rapidtransition required to achieve the goals of the Paris Climate Agreement;
4.1.3. A description of the decision-making process, as defined under Clause 2.1,
with particular reference to the requirements in Clause 2.1.2;
4.1.4. Information on the methodology and assumptions to be used for: confirming,
where required by relevant Sector Eligibility Criteria, the characteristics or
performance of Nominated Projects & Assets required to conform to the relevant
eligibility requirements under Part C of the Climate Bonds Standard; and any otheradditional impact metrics that the issuer will define.
4.1.5. A summary of the approach to the management of unallocated Net Proceeds inaccordance with Clause 3.1;
4.1.6. The intended approach to providing Update Reports to reaffirm conformancewith the Climate Bonds Standard while the Bond remains outstanding;
4.1.7. The list of proposed Nominated Projects & Assets associated with the Bondand the investment areas, as provided in Clause 9.1, into which the NominatedProjects & Assets fall. Where there are limits on the amount of detail that can bemade available about specific Nominated Projects & Assets, information shall bepresented on the investment areas which the Nominated Projects & Assets fall into,
as provided in Clause 9.1, and the Issuer shall provide an explanation of why detailon Nominated Projects & Assets is limited;

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4.1.8. Where a proportion of the Net Proceeds are used for refinancing, anestimate of the share of the Net Proceeds used for financing and refinancing, andthe relevant Nominated Projects & Assets or investment areas which may be
refinanced. This may also include the expected look-back period for refinanced
Nominated Projects & Assets.
Note: Issuers are encouraged to disclose as much information as possible with respect toNominated Projects & Assets. However, in many cases it is not possible for the Issuer todisclose detailed information about specific projects & assets prior to the issuance of theBond. This limitation may be due to confidentiality arrangements with owners of projects& assets, the dynamic nature of the project portfolio, competitive considerations, or otherlegal provisions which limit the disclosure of detailed information.
4.2. The Issuer shall include in the Disclosure Documentation:
4.2.1. The investment areas, as provided in Clause 9.1, into which the NominatedProjects & Assets fall;
4.2.2. The intended types of temporary investment instruments for the
management of unallocated Net Proceeds in accordance with Clause 7.3;
4.2.3. The Verifier engaged by the Issuer for the mandatory verification
engagements;
4.2.4. The intended approach to providing Update Reports to reaffirm conformancewith the Climate Bonds Standard while the Bond remains outstanding, including thelocation of the published documents;
4.2.5. The Climate Bonds Initiative Disclaimer provided in the Certification
Agreement.
Note to 4.2.4: Issuers are encouraged to provide their Update Reports through existing
reporting channels for the bond markets, such as the Electronic Municipal Market Access(EMMA) website for the US Municipality sector.

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Part B: Post-Issuance Requirements
This Section of the Climate Bonds Standard sets out the requirements that apply to all
Certified Climate Bonds, Certified Climate Loans and Certified Climate Debt Instruments
after the issuance of the bond or closing of the loan or other debt instrument. For Issuers
seeking Post-Issuance Certification, all requirements set out in this section shall be met.
Issuers seeking Certification of bonds, loans or other debt instruments which havealready been issued or closed, and were not Certified at the pre-issuance stage, needto prepare a Green Bond Framework (see Clause 4.1) and meet all of the Post-Issuance
Requirements to receive Certification under the Climate Bonds Standard.
5. Use of Proceeds
5.1. The Net Proceeds of the Bond shall be allocated to the Nominated Projects &Assets.
5.2. All Nominated Projects & Assets shall meet the documented objectives of theBond as stated under Clause 6.1.1 and shall be in conformance with the requirementsof Part C of the Climate Bonds Standard.
5.3. The Issuer shall allocate the Net Proceeds to Nominated Projects & Assets within
24 months of issuance of the Bond, or the Issuer shall disclose in post-issuancereporting as per clause 8.3 the estimated timeline for allocation of net proceeds to
Nominated Projects & Assets. Net proceeds may be reallocated to other NominatedProjects & Assets at any time while the Bond remains outstanding.
5.4. Nominated Projects & Assets shall not be nominated to other Certified Climate
Bonds, Certified Climate Loans, Certified Climate Debt Instruments, green bonds,
green loans or other labelled instruments (such as social bonds or SDG bonds) unless
it is demonstrated by the Issuer that:
5.4.1. distinct portions of the Nominated Projects & Assets are being funded bydifferent Certified Climate Bonds, Certified Climate Loans, Certified Climate Debt
Instruments, green bonds, green loans or other labelled instruments or,
5.4.2. the existing Certified Climate Bond, Certified Climate Loan or Certified
Climate Debt Instrument is being refinanced via another Certified Climate Bond,
Certified Climate Loan or Certified Climate Debt Instrument.
5.5. Where a proportion of the Net Proceeds of the Bond are used for refinancing, theIssuer shall track the share of the Net Proceeds used for financing and refinancing andidentify which Nominated Projects & Assets may be refinanced. This may also include
the expected look-back period for refinanced Nominated Projects & Assets.
5.6. The Net Proceeds of the Bond shall be tracked by the Issuer following a formalinternal process which is documented in accordance with Clause 3.1.
5.7. The Net Proceeds of the Bond shall be no greater than the Issuer’s total
investment exposure or debt obligation to the Nominated Projects & Assets, or the
relevant proportion of the total Market Value of the Nominated Projects & Assets
which are owned or financed by the Issuer.
Note: The Issuer may choose whether to use the investment exposure or debt obligation to
the Nominated Projects & Assets or their Market Value when satisfying Clause 5.7.

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5.8. Additional Nominated Project & Assets may be added to, or used to substituteor replenish, the portfolio of Nominated Project & Assets as long as the additional
Nominated Project & Assets are eligible under Part C of the Climate Bonds Standard
and are consistent with the Bond’s objective as set out in Clause 6.1.1.
5.8.1. Where additional Nominated Projects & Assets are covered by Sector
Eligibility Criteria which were not included in the scope of either the Pre-Issuance
Verification or the Post-Issuance Verification engagements, the Issuer shall engage
a Verifier to provide a Verifier’s Report covering at least the conformance of theadditional Nominated Projects & Assets with the relevant Sector Eligibility Criteria
under Part C of the Climate Bonds Standard.
Note: For example, if the objectives of a Certified Climate Bond are to finance a portfolioof solar power facilities in a region and it receives Certification on that basis, then theIssuer may have only used the Solar Eligibility Criteria as the basis for the selection
process in their Green Bond Framework. If the Issuer later wishes to adjust the objectives
and allocate Net Proceeds to an expanded range of Nominated Projects & Assets, suchas hydro power facilities, water infrastructure or forestry assets, then it will need to use
the relevant Sector Eligibility Criteria in its selection processes. These Sector Eligibility
Criteria may contain more complex eligibility criteria or technical requirements whencompared to those considered during the initial Certification.
6. Process for Evaluation and Selection of Projects & Assets
6.1. The Issuer shall document and maintain a decision-making process which ituses to determine the continuing eligibility of the Nominated Projects & Assets. This
includes, without limitation:
6.1.1. A statement on the climate-related objectives of the Bond;
6.1.2. How the climate-related objectives of the Bond are positioned within thecontext of the Issuer’s overarching objectives, strategy, policy and/or processes
relating to environmental sustainability;
6.1.3. The Issuer’s rationale for issuing the Bond;
6.1.4. A process to determine whether the Nominated Projects & Assets meet theeligibility requirements specified in Part C of the Climate Bonds Standard;
6.1.5. Other information provided by the Issuer as described in Clause 2.2.
7. Management of Proceeds
7.1. The Net Proceeds of the Bond shall be credited to a sub account, moved to a
sub- portfolio or otherwise identified by the Issuer in an appropriate manner, anddocumented.
7.2. The Issuer of the Bond shall maintain the earmarking process to manage andaccount for allocation of Net Proceeds to the Nominated Projects & Assets as
described in Clause 3.1.3.
7.3. While the Bond remains outstanding, the balance of the tracked Net Proceeds
shall be reduced by amounts allocated to Nominated Projects & Assets. Pending suchallocations to Nominated Projects & Assets, the balance of unallocated Net Proceeds
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7.3.1. Held in temporary investment instruments that are cash, or cash equivalent
instruments, within a Treasury function; or7.3.2. Held in temporary investment instruments that do not include greenhousegas intensive projects which are inconsistent with the delivery of a low carbon andclimate resilient economy; or
7.3.3. Applied to temporarily reduce indebtedness of a revolving nature before
being redrawn for investments or disbursements to Nominated Projects & Assets.
8. Reporting
8.1. The Issuer shall prepare an Update Report at least annually while the Bond
remains outstanding.
8.1.1. The Update Report shall be made available to holders of the Bond and to the
Climate Bonds Standard Board.
8.1.2. The Update Report shall be made available to the public.
8.1.3. The Issuer should provide an Update Report to holders of the Bond on atimely basis in case of material developments.
Note 1: If the Update Report cannot be made available to the public, then the Certified
Climate Bond can not be included in the green bond database compiled by Climate Bonds
Initiative. This database is used by index providers and other market players and has
minimum requirements for public disclosure (https://www.climatebonds.net/cbi/pub/data/bonds).
Note 2: If the Update Report can not be made available to the public, then the Bond
would not be aligned with the preposed EU Green Bond Standard and would not be able
to claim such conformance.
Note 3: The timing of reporting under this clause can be aligned with the Issuer’s scheduleof regular reporting and does not need to follow the anniversary of the Certification orIssuance of the Bond.
Note 4: Issuers are encouraged to make the Update Reports available through existing
reporting channels for the capital markets, such as the EMMA system for the US
Municipality sector.
Note 5: Material developments could include, but not limited to, early repayment, changeof control or acquisition, change of name, changes to the eligibility of assets and projects
as well as any material amendments, supplements, and other updates to deal documents
including during the life of the debt instrument (including any winding up process orenforcement).
8.2. The Update Report:
8.2.1. shall include Allocation Reporting;
8.2.2. shall include Eligibility Reporting, where Eligibility Reporting is relevant for
the Nominated Projects & Assets;
8.2.3. should include Impact Reporting.

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8.3. The Allocation Reporting shall include, without limitation:
8.3.1. Confirmation that the Bonds issued under the Green Bond Framework
are aligned with the Climate Bonds Standard. This may include statements ofalignment with other applicable standards, such as the proposed EU Green Bond
Standard, the ASEAN Green Bond Standard, Chinese domestic regulations,Japanese Green Bond Guidelines, etc;
8.3.2. A statement on the climate-related objectives of the Bond;
8.3.3. The list of Nominated Projects & Assets to which Net Proceeds have been
allocated (or re-allocated);
8.3.4. The amounts allocated to the Nominated Projects & Assets;
8.3.5. An estimate of the share of the Net Proceeds used for financing andrefinancing, and which Nominated Projects & Assets have been refinanced. This
may also include the expected look-back period for refinancing Nominated Projects& Assets;
8.3.6. The geographical distribution of the Nominated Projects & Assets.
8.4. The Eligibility Reporting shall include, without limitation:
8.4.1. Confirmation that the Nominated Projects & Assets continue to meet therelevant eligibility requirements specified in Part C of the Climate Bonds Standard;
8.4.2. Information on the environmental characteristics or performance ofNominated Projects & Assets which is prescribed by the relevant Sector Eligibility
Criteria.
Note 1: Some Bonds have very stable allocation of proceeds and do not need to track
any performance indicators to maintain the eligibility of the projects & assets (suchas financing for a single large-scale solar facility). This means that the Update Reportprovided by the Issuer each year can be very concise and simply restate the informationfrom previous reports.
8.5. Where there are limits to the amount of detail that can be made available in
the Update Report about specific Nominated Projects & Assets (as per Clause 8.3),
information shall be presented on the investment areas which the Nominated Projects& Assets fall into, as provided in Clause 9.1. Issuers shall include in the Update Reportan explanation of why detail on Nominated Projects & Assets is limited.
8.6. The Impact Reporting shall, without limitation,
8.6.1. Provide the expected or actual outcomes or impacts of the NominatedProjects & Assets with respect to the climate-related objectives of the Bond;
8.6.2. Use qualitative performance indicators and, where feasible, quantitative
performance measures of the outcomes or impacts of the Nominated Projects &Assets with respect to the climate-related objectives of the Bond;
8.6.3. Provide the methods and the key underlying assumptions used in preparationof the performance indicators and metrics.

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Note 1: Examples of quantitative performance measures of the outcomes of NominatedProjects & Assets can include, but are not limited to: energy capacity installed, electricity
generated, greenhouse gas emissions performance of buildings, number of passengers
carried by public transport, number of electric vehicles manufactured, volume ofwaste water treated. Impact metrics and indicators can include but are not limited to:greenhouse gas emissions reduced/avoided, number of households provided with accessto clean power, decrease in water use, reduction in number of cars required.
Note 2: Methods include but are not limited to the framework used and the calculation
methodology, including if metrics are annual, annualised, and/or lifetime calculations.
Both proprietary and institutional frameworks (e.g. the Harmonized Framework for
Impact Reporting or the Nordic Public Sector Issuers Position Paper on Green Bond
Impact Reporting) may be used, where by institutional frameworks may be referenced,
whereas proprietary and new frameworks should be described in sufficient detail to allow
assessment.
8.7. The Issuer shall make available to the public any Verifier Reports or other relevantmaterial which supports the Update Report.
8.8. Information about the Nominated Projects & Assets and the Management ofProceeds shall be provided to the Verifier and to the Climate Bonds Standard Board to
support the assessment of conformance with the Climate Bonds Standard.
Note: The information provided to the Verifier and the Climate Bonds Standard Board may
be subject to confidentiality arrangements as required by the Issuer.

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Figure 1. Certification Process for a bond, loan or other debt instrument

1

2

Issuer begins by preparing the bondEngage a verifier• Identify assets that meet the• Engage an Approved Verifier for Pre-

relevant sector criteria and compile
supporting information

and Post-Issuance Certification• Provide them with relevant• Create Green Bond Framework

information

setting out how proceeds of the bondwill be used the Issuer’s internal
controls• Receive a Verifier’s Report giving
assurance that Climate Bonds
Standard requirements are met

3
Get Certified & issue a
Certified Climate Bond

• Submit the Verifier’s Report andInformation Form to the Climate
Bonds Initiative• Receive a decision on Pre-Issuance
Certification• Issue the bond, using the Certified
Climate Bond mark

4

5

Confirm the Certification
Post-Issuance

Report annually• Within 24 months of issuance,

term of the bondsubmit the Verifiers Post-Issuancereport• Provide it to bond holders and• Receive notification of Post-Issuance• Provide updates through publicCertification

21• Prepare a simple report each year for

Climate Bonds Standard Version 3.0

Climate Bonds Initiative
disclosure

Part C: Eligibility of Projects & Assets
This Part of the Climate Bonds Standard serves to determine the eligibility of specificprojects and assets that, for the purposes of this Climate Bonds Standard, can be regarded ascontributing to the rapid transition to a low carbon and climate resilient economy in line withthe goals of the Paris Climate Agreement.
Clause 9 refers to the Climate Bonds Taxonomy. The taxonomy provides an overview of the
mitigation and adaptation investment opportunities across the major sectors of the global
economy. It serves as an initial screen for inclusions and exclusions for climate-aligned
sectors and is used by the Climate Bonds Initiative when reviewing labelled bonds or loans
for inclusion in its green bond list. The Taxonomy is available on the Climate Bonds Initiative
resources webpage.
Clause 10 refers to detailed criteria, contained in the Sector Eligibility Criteria
documents. The criteria contained in these documents must be met for projects andassets to be considered eligible. Sector Eligibility Criteria for a wide variety of projects
and assets are available on the Climate Bonds Initiative resources website.
Some of the Sector Eligibility Criteria include requirements for the ongoing
demonstration of eligibility via metrics or performance indicators over time, while other
Sector Eligibility Criteria simply refer to the inherent characteristic of the assets.
At the time of publication of Version 3.0 of the Climate Bonds Standard (thisdocument), Sector Eligibility Criteria are available for projects & assets in wind energy,
solar energy, geothermal energy, marine renewable energy, bioenergy, low carbon
buildings, low carbon transport, water infrastructure, forests, land conservation andwaste management.
Further Eligibility Criteria are being prepared covering shipping, hydro power, power
grids, agriculture, energy efficient devices and industrial assets.
9. Climate Bonds Taxonomy
9.1. Nominated Projects & Assets, as identified by the Issuer under Clauses 1.1 and
5.1, shall fall into one or more of the investment areas listed as included in the Climate
Bonds Taxonomy.
10. Sector Eligibility Criteria
10.1. Nominated Projects & Assets shall meet the specific eligibility requirements
provided in the relevant Sector Eligibility Criteria documents. If there are different
versions of the relevant Sector Eligibility Criteria documents, then the version which
was current at issuance of the bond may be used for demonstration of the eligibility ofNominated Projects & Assets for the duration of the bond.
Note: All Sector Eligibility Criteria are approved by the Climate Bonds Standard Board following acriteria development process involving Technical Working Groups, Industry Working Groups
and stakeholder consultation. Further details on the development process and the sector-bysector criteria are available from the Climate Bonds Initiative resources webpage.

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Part D: Certification under the Climate Bonds Standard
This section of the Climate Bonds Standard sets out the rules and procedures for
Certification of bonds, loans or other debt instruments by the Climate Bonds Standard
Board. Further detail on the process steps and administrative workflow for Certification
is provided in Guidance documents available from the Climate Bonds Initiative website.
Outline of the Certification Process
The Certification Process has three distinct phases that are aligned with the normal
process for issuing and maintaining a bond, loan or other debt instrument. This allows
the Certification Mark to be used during the pricing and marketing of the bond or thenegotiation of the loan or other debt instrument. It also ensures that the integrity of theCertification Mark is maintained after issuance or closing of the bond, loan or other debt
instrument and the allocation of net proceeds.
1. Pre-Issuance Certification: Assessment and Certification of the Issuer’s internal
processes, including its selection process for projects & assets, internal tracking ofproceeds, and the allocation system for net proceeds.
This phase includes the Issuer preparing a Green Bond Framework and a list of eligible
projects & assets; verification of the framework and the list by an Approved Verifier;production of a Verifier’s Report; and provision of certification documents to the
Climate Bonds Standard Secretariat.
Pre-Issuance Certification of bonds, loans or other debt instruments is awarded via
a formal letter and a Certificate from the Climate Bonds Standard Board. The PreIssuance Certification covers the period prior to issuance or closing of the bond andcan assist with marketing of the deal. Pre-Issuance Certification is valid until PostIssuance Certification is awarded.
2. Post-Issuance Certification: Assessment and Certification of the bond, loan orother debt instrument after it has been issued or has closed. If the bond, loan or otherdebt instrument has been awarded Pre-Issuance Certification, then the Post-Issuance
Certification must be undertaken within 24 months of the date of financial close forthe bond, loan or other debt instrument.
This phase includes preparation of post-issuance updates; verification of theinformation by an Approved Verifier; production of a Verifier’s Report; and provision ofcertification documents to the Climate Bonds Standard Secretariat.
Post-Issuance Certification of individual bonds, loans or other debt instruments is
confirmed via a formal letter from the Climate Bonds Standard Board. Post-Issuance
Certification is awarded as at a particular date after the bond, loan or other debt
instrument has been issued or has closed.
3. Ongoing Certification: Maintenance of the Certification based on ongoing
conformance with the Post-Issuance Requirements of the Climate Bonds Standard,
including meeting annual reporting requirements which are specified in Clause 8.
Maintenance requirements and Non-conformance provisions are detailed in Clauses
P10 and P11.
Programmatic Certification is also available for Issuers with large portfolios of Eligible
Projects & Assets and programs for issuance of multiple Certified deals over a numberof years. The Programmatic Certification approach enables frequent issuers to havegreater flexibility with respect to the timing and scale of issuing Certified Climate
Bonds, Certified Climate Loans, or Certified Climate Debt Instruments.

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Issuers using Programmatic Certification have a reduced verification burden during
the certification and issuance process within their program. Annual verification by
an Approved Verifier is mandatory under Programmatic Certification. This option is
described in detail in Clause P9.
If a bond, loan or other debt instrument has already been issued or has alreadyclosed, the Issuer can still seek Certification from the Climate Bonds Standard Board.
Certification of existing bonds, loans or other debt instruments follows the PostIssuance Certification Process and is encouraged for existing Issuers which are alignedwith the Climate Bonds Taxonomy.
The rules and the requirements for the Certification Process are provided in thisdocument under the next section.
Certification documents can be submitted to the Climate Bonds Standard Board via the
Climate Bonds Standard Secretariat at the email address: certification@climatebonds.net.
Further support is available via phone, email and the Climate Bonds Initiative website toassist Issuers, Verifiers and advisors with successfully navigating the requirements of
the Climate Bonds Standard and the Certification Process.

Pre-Issuance Climate Bond Certification
P1. Preparing for the certification process
P1.1. Issuers seeking Certification and the use of the Certification Mark for a Bondprior to Issuance shall:P1.1.1. Prepare a Green Bond Framework (or equivalent document) which describes
how each of the requirements in the Climate Bonds Standard will be met by the Issuer
for the relevant Bond or program of Bonds.
P1.1.2. Complete the Climate Bonds Information Form (as appropriate) and submit
the completed form to the Climate Bonds Standard Secretariat.
Note 1: The Climate Bonds Information Form is available from the Climate Bonds
Initiative resources webpage.
P1.2. The Issuer shall identify within the Climate Bonds Information Form what
components of the information provided are confidential and what components canbe publicly disclosed on the Climate Bonds Initiative website once Certification has
been confirmed and Issuance of the Bond has been completed.
Note 2: The Issuer may submit a draft or incomplete Climate Bonds Information Form to the
Climate Bonds Standard Secretariat in order to seek feedback and guidance on the requirementsof the Climate Bonds Standard, the Sector Eligibility Criteria and the Certification Process.
Note 3: While acknowledging that some information is sensitive and not able to be disclosed
publicly, the Climate Bonds Initiative will always encourage Issuers to provide as much
public information as is possible. This is in line with market best practice and will also enable
Bonds to be eligible for key market indices and green bond funds. For example, some major
green bond index providers undertake a review of the Issuer’s Green Bond Framework as partof their analysis and inclusion screening, while an increasing number of stock exchanges
provide enhanced visibility though green bond segments but require adherence to green
bond guidelines /requirements, which typically include disclosure of the Issuer’s Green Bond
Framework and external reviews (including Certification under the Climate Bonds Standard).

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P2. Use of a Verifier Prior to IssuanceP2.1. Issuers seeking Certification and the use of the Certification Mark for a Bondprior to its Issuance shall engage a Verifier to undertake either:P2.1.1. An assurance engagement of the Issuer’s and the proposed Bond’s
conformance with the Pre-Issuance Requirements of the Climate Bonds Standard.
The Verifier shall issue an assurance report expressing a conclusion or an opinion
as to whether the Issuer and the proposed Bond have conformed to the PreIssuance requirements of the Climate Bonds Standard; orP2.1.2. An agreed-upon procedures engagement to assess the Issuer’s and the
proposed Bond’s conformance with the Pre-Issuance Requirements of the Climate
Bonds Standard. The Verifier shall consider the Readiness Assessment Protocol
provided on the Climate Bonds Initiative website and shall issue a report offactual findings providing the assessment of the Issuer’s and the proposed Bond’s
conformance with the Pre-Issuance Requirements of the Climate Bonds Standard.
P2.2. The subject matter considered by the Verifier shall include those requirements
set out in the Pre-Issuance Requirements section of the Climate Bonds Standard,
including the relevant Sector Eligibility Criteria.
P2.3. The Verifier shall undertake the engagement and prepare the Verifier’s Report inline with the Guidance for Verifiers provided on the Climate Bonds Initiative website.
P2.4. The Verifier’s Report shall include a summary of how the Issuer and the
proposed Bond have conformed with each of the four components of the Pre-Issuance
Requirements of the Climate Bonds Standard, including the relevant Sector Eligibility
Criteria.
P3. Applying for Pre-Issuance Certification
P3.1. An Issuer that has completed a Pre-Issuance Assurance Engagement or AgreedUpon Procedures Engagement may apply to the Climate Bonds Standard Board toreceive Certification of the Bond under the Climate Bonds Standard.
P3.2. The Issuer shall supply the Climate Bonds Standard Board with:
P3.2.1. a completed (as appropriate) Climate Bond Information Form,
P3.2.2. the Green Bond Framework (or equivalent summary),P3.2.3. the Verifier’s Report, andP3.2.4. an executed Certification Agreement.
These documents shall be submitted to the Climate Bonds Standard Secretariat via
email (certification@climatebonds.net).
P4. Pre-Issuance Certification
P4.1. If the Climate Bonds Standard Board is satisfied that the Issuer and proposed
Bond are in conformance with the Pre-Issuance Requirements, then it shall provide
a statement which confirms the Certification of the Bond under the Climate Bonds
Standard. The Issuer then has the right (subject to the Certification Agreement)
to use the Certification Mark in association with the relevant Bond until the PostIssuance Certification is confirmed.

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P4.2. An Issuer shall stop using the Certification Mark:
P4.2.1. Within two years of Issuance, unless the Issuer has received confirmationof Post-Issuance Certification from the Climate Bonds Standard Board; or is using
Programmatic Certification as per Clause P9.
Note: The Certification at the pre-issuance stage is only valid for two years from theIssuance of the Certified Climate Bond, Certified Climate Loan or Certified Climate
Debt Instrument. Post-issuance Certification must be confirmed within that timeframe
for the continuing use of the Certification Mark.
P4.2.2. Where the Issuer no longer wishes to take the proposed Bond to Issuanceand provides a written statement to that effect to the Climate Bonds Standard Board.
P4.2.3. Where the Issuer becomes aware that the Bond no longer conforms with the
Climate Bonds Standard; andP4.2.4. Where an Assurance Engagement commissioned by the Issuer or the Climate Bonds
Standard Board finds that the Bond no longer conforms with the Climate Bonds Standard.

Post-Issuance Certification
P5. Preparation for Post-Issuance Certification
P5.1. Issuers seeking Certification and the use of the Certification Mark after Issuanceof the Bond shall:
P5.1.1. If Pre-Issuance Certification has previously been confirmed for the Bond,update the Green Bond Framework and Climate Bond Information Form to reflect
relevant changes or clarifications to this information after Issuance of the Bond.
P5.1.2. If Pre-Issuance Certification has not previously been confirmed, prepare a
Green Bond Framework and other documents as described in Clauses P3.2 and P5.1.3.
P5.1.3. Prepare information and evidence to support the Bond’s ongoing
conformance with the Post-Issuance Requirements of the Climate Bonds Standard,
including any ongoing requirements in the relevant Sector Eligibility Criteria.
P6. Use of a Verifier for Post-Issuance Assurance
P6.1. The Issuer shall engage a Verifier to undertake an Assurance Engagement afterIssuance of the Bond.
P6.1.1. If Pre-Issuance Certification has previously been confirmed, then this Assurance
Engagement must be completed within two years of the Issuance of the Bond.
P6.1.2. The subject matter considered by the Verifier shall include thoserequirements set out in the Post-Issuance Requirements section of the Climate
Bonds Standard, including the relevant Sector Eligibility Criteria.

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P6.1.3. The Verifier shall undertake the engagement and prepare the report in linewith the Guidance for Verifiers provided on the Climate Bonds Initiative website.
Note: The Issuer or other supporting entity should engage the same Verifier toundertake both the pre-issuance and post-issuance activities under the one commercial
arrangement. However, this may not be possible in all circumstances.
P6.2. Verifier’s Reports submitted to the Climate Bonds Standard Board shall beconsidered to be confidential unless the Issuer voluntarily discloses the Verifier’s
Report, or the Climate Bonds Standard Board is required by law or national regulators todisclose the Verifier’s Report. The Climate Bonds Standard Board shall consult with theIssuer and Verifier on the presentation of the information prior to any public release of
the Verifier’s Report.
P6.3. The Verifier’s Report shall include a summary of how the Issuer and the Bond
have conformed with each of the four components of the Post-Issuance Requirementsof the Climate Bonds Standard and the relevant Sector Eligibility Criteria.
P7. Applying for Post-Issuance Certification
P7.1. If Pre-Issuance Certification has previously been confirmed, the Issuer shall
supply the Climate Bonds Standard Board with:
P7.1.1. an updated Climate Bond Information Form,
P7.1.2. the Green Bond Framework (or equivalent summary) as updated,
P7.1.3. the Verifier’s Report from the Post-Issuance Assurance Engagement.
P7.2. If Pre-Issuance Certification has not previously been confirmed, the Issuer shall
supply the Climate Bonds Standard Board with the documents listed in Clause P3.2.
These documents shall be submitted to the Climate Bonds Standard Secretariat via
email (certification@climatebonds.net).
P8. Post-Issuance Certification
P8.1. If the Climate Bonds Standard Board is satisfied that the Issuer and the Bond arein conformance with the Post-Issuance Requirements of the Climate Bonds Standard,then it shall provide a statement that confirms the Certification of the Bond. The
Issuer then has the right to continue using the Certification Mark in association withthe relevant Bond (but no others) while the Bond remains outstanding.
P8.2. An Issuer shall stop using the Certification Mark if:
P8.2.1. Where the Issuer no longer wishes to continue with the Certification of theBond and provides a written statement to that effect to the Climate Bonds Standard
Board.
P8.2.2. It becomes aware that the Issuer and/or the Bond no longer conform with
the Climate Bonds Standard; orP8.2.3. An Assurance Engagement commissioned by the Issuer or the Climate
Bonds Standard Board finds that the Issuer and/or the Bond no longer conform with
the Climate Bonds Standard.

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Programmatic Certification
P9. Programmatic Certification
P9.1. An Issuer may use the option of Programmatic Certification if the Issuer:P9.1.1. Can identify a large portfolio of Eligible Projects & Assets which could coverissuance of multiple Certified Climate Bonds, Certified Climate Loans or Certified
Climate Debt Instruments, andP9.1.2. Has initiated a Program to issue multiple Certified deals over multiple years.
P9.2. For the first Bond under the Program, the Issuer shall follow the normal process
for Climate Bond Certification as per clauses P1 to P8.
P9.3. For subsequent Bonds under the Program, the Issuer shall apply to the Climate
Bonds Standard Board to receive Certification of each Bond’s conformance with the
Climate Bonds Standard by:
P9.3.1. Prior to Issuance, supplying the Climate Bonds Standard Board with a completed(as appropriate) Climate Bonds Information Form for the specific Bond to be considered
for Certification. This document shall be submitted to the Climate Bonds Standard
Secretariat who shall promptly provide the Issuer with Certification documents for the
specific Bond.
P9.3.2. Following Issuance, supplying the Climate Bonds Standard Board with an updated
Climate Bonds Information Form through the Climate Bonds Standard Secretariat.
P9.4. Every year after the first Issuance under the Program, the Issuer must engage a
Verifier to undertake an Assurance Engagement
P9.4.1. The subject matter considered by the Verifier shall include those requirements set
out in the Post-Issuance Requirements section of the Climate Bonds Standard, including
the reporting requirements in Clause 8, and shall cover all Bonds under the Program.
P9.4.2. The Issuer shall supply the Climate Bonds Standard Board with an updated
Climate Bonds Information Form, the Green Bond Framework (if updated) and the
Verifier’s Report through the Climate Bonds Standard Secretariat.

Maintaining Certification
P10. Maintaining Certification
P10.1. To maintain the Certification status of the Bond the Issuer shall prepare andmake available Update Reports at least annually while the Bond remains outstanding, asprescribed in the post-issuance reporting requirements in Clause 8 of the Climate Bonds
Standard. The Update Report shall be signed by an authorised officer of the Issuer.
P10.2. The Issuer shall supply the Climate Bonds Standard Board with Update
Reports through the Climate Bonds Standard Secretariat or share their location ona public website. Links to Update Reports will be published on the Climate Bonds
Initiative website.

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P10.3. The Issuer may engage a Verifier to undertake further Assurance Engagements on aperiodic basis (such as annually) to confirm that the Issuer and the Bond have maintained
conformance with the Post-Issuance Requirements of the Climate Bonds Standard.
P10.4. Where Nominated Projects & Assets are covered by Sector Eligibility Criteria which
require ongoing demonstration of eligibility, the Issuer shall include in Update Reports
confirmation that Nominated Projects & Assets continue to meet the relevant criteria.
P11. Non-ConformanceP11.1. An Issuer using the Certification Mark shall provide further information if
requested by the Climate Bonds Standard Board.
P11.2. In cases of claimed breach of conformance with the Climate Bonds Standard,
the Climate Bonds Standard Board may request a new Verifier’s Report be prepared bya different Verifier as a condition of maintaining Certification under the Climate Bonds
Standard.
P11.2.1. This Verifier’s Report shall be submitted to the Climate Bonds Standard Board
for review within three months of the initial request.
P11.2.2. No more than one Verifier’s Report in any six-month period shall be required
to be provided by the Issuer following Post-Issuance Certification.
P11.3. Where a Certified Climate Bond, Certified Climate Loan or Certified Climate
Debt Instrument is no longer in conformance with the Climate Bonds Standard, then theIssuer shall disclose that fact to the Climate Bonds Standard Board within one month of
becoming aware of the non-conformance.
P11.3.1. The Climate Bonds Standard Board may suggest corrective actions forconformance to be restored.
P11.3.2. If conformance is not restored within an agreed time frame, the Climate
Bonds Standard Board shall revoke its Certification of that Bond.
P11.4. Once Certification of a Bond has been revoked by the Climate Bonds Standard
Board, the Issuer shall:
P11.4.1. Not use the Certification Mark in association with the Bond loan or imply that
the Certification is still in place;
P11.4.2. Take all necessary steps to remove that Bond from relevant lists or indiceswhich require Certification; andP11.4.3. Inform the holders of the Bond, relevant exchanges, and other transaction
parties of the change in Certification status of the Bond.
P11.5. An Issuer of a Bond which has had its Certification revoked by the Climate
Bonds Standard Board may appeal the decision through the Climate Bonds Standard
Appeals Mechanism, which is available from the Climate Bonds Initiative website.

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Annex 1: Bonds, loans and other debt instruments which
are eligible for Certification
There is a wide variety of different financial structures of green bonds, green loans andother debt instruments which are eligible for Certification under the Climate Bonds
Standard.
The term “Bond” is used in this Standard to describe the debt instrument being
considered for Certification whether that be structured as a bond, a loan or some otherform of debt instrument.
A green loan or green bond may take the form of one or more tranches of a bond or loan
facility. In such cases, the green tranche(s) must be clearly designated.
The following types of debt instruments are eligible for Certification under the Climate
Bonds Standard version 3.0:
Standard Use of Proceeds Bond: a standard recourse-to-the-issuer debt obligation
which is either listed or unlisted.
Revenue Bond: a non-recourse-to-the-issuer debt obligation, either listed or unlisted,in which the credit exposure in the bond is to the pledged cash flows of the revenue
streams, fees, taxes etc., and whose use of proceeds go to related or unrelated projects.
Project Bond: a project bond, either listed or unlisted, for a single or multiple projects
for which the investor has direct exposure to the risk of the projects with or without
potential recourse to the issuer.
Securitised Bond: a bond, either listed or unlisted, collateralised by one or more
specific projects or assets, including lease, loan and other revenue receivables Asset
Backed Securities (“ABS”), Mortgage Backed Securities (“MBS”) including Agency MBS,
Residential MBS, Commercial MBS, Commercial Mortgage Backed Securities (CMBS)
Collateralised Loan Obligations (“CLO”), Collateralised Debt Obligations (“CDO”),
Whole Business Securitisation (“WBS”) and other securitisation structures.
Convertible Bonds or Notes: Bonds or notes, either listed or unlisted, which have theright but not the obligation to convert into a specified number of ordinary shares (orother securities) under specified terms and conditions. If the bond or note was Certified
when it was issued and then later converted to equity, then its status as a Certified
Climate Bond would end at the point of conversion.
Sukuk: refers to various types of quasi-debt securities that have been developed to meetthe strictures of Islamic finance. One of the core principals underlying Islamic financeis avoiding the payment or collecting of interest. A variety of financial instruments havebeen created that serve the same purpose as bonds and other debt securities, but on
which interest is not paid and investors share in profit distributions.
Schuldschein: a traditional German floating or fixed debt instrument. Some features of a
Schuldschein are similar to those of loans, while other features are more similar to bonds.
Loan Facility: a credit line made available to borrowers to finance projects and assets
which meet the relevant Sector Eligibility Criteria of the Climate Bonds Standard. Loanscan be unsecured (with general recourse to the obligors) or secured (non-recourse orlimited recourse to obligors). This includes:

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• Bilateral Loan: A loan agreement between one lender and the obligor(s)/borrower(s)• Syndicated /Club Loan: A loan from a number of different lenders acting together.
The lenders form a syndicate and the borrower borrows from the syndicate.
Common types of syndicated loans are underwritten deals, best-effort deals andclub deals. Usually structured by one of several commercial banks or investmentbanks, can also include ‘non-bank’ lenders such as debt funds, insurance companies,
hedge funds or pension funds.
• Revolving Credit Facilities, Export Credit Facilities and similar credit lines with aterm of exceeding one year, where the parties to the loan must agree how the flow offunds will be evidenced.
Commercial Paper: Short-term debt securities. Unsecured promissory notes issued bystrong credits including both financial institutions and non-bank corporates.
Debt Instruments issued by a Green Bond Fund: a Green Bond Fund is a fund whichinvests in green bonds based on a set of screens or criteria. Screens for the fund could
include that the underlying projects and assets must meet the relevant Sector Eligibility
Criteria of the Climate Bonds Standard. The fund is likely to issue securities such as
units in a trust or use similarly structured arrangements to raise equity. Certification is
only available for the debt instruments issued by the fund. The fund itself is not eligible
for Certification under the Climate Bonds Standard.
Covered Bond (Pfandbriefe): a dual recourse bond which relies primarily on repayment
from the issuesr, but also has access to a pool of assets (the cover pool). The cover pooloften comprises mortgages, but other assets can be used as collateral too. For instance,
the German Pfandbrief market includes Mortgages Pfandbrief, Public Pfandbrief, Shipand Aircraft Pfandbrief. In Luxembourg, it is possible to issue renewable infrastructure
covered bonds.
Green Deposits: client funds held by a financial institution which are clearly identified
and allocated to a portfolio of projects and assets which meet the relevant Sector
Eligibility Criteria of the Climate Bonds Standard.
The following types of financial instruments are also eligible for Certification under the
Climate Bonds Standard version 3.0:
Green Deposits: client funds held by a financial institution which are clearly identified
and allocated to a portfolio of projects and assets which meet the relevant Sector
Eligibility Criteria of the Climate Bonds Standard

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Annex 2: Compatibility of Climate Bonds Standard V3.0
and the proposed EU Green Bonds Standard
Version 3.0 of the Climate Bonds Standard has been developed to be fully compatible
with the proposed European Union Green Bond Standard (EU GBS) which was releasedby the Technical Expert Group in June 2019.
Further detailed analysis of the proposed EU Green Bond Standard and the Climate
Bonds Standard V3.0 documents and the associated requirements is available from the
Climate Bonds Initiative website.
Table 1: Summary of the comparison between the draft EU Green Bond
Standard and Climate Bonds Standard Version 3.0
Key Feature

EU Green Bond Standard (draft)

Climate Bonds Standard Version 3.0

Eligibility of
projects andassetsBased on the EU Taxonomy which includes
detailed criteria for relevant activities.

Based on the Climate Bonds Taxonomy
plus sector-by-sector Eligibility Criteria.

Climate change mitigation criteria arealigned with achieving the goals of theParis Agreement.

All criteria are aligned with achieving thegoals of the Paris Agreement.

Green Bond
Framework

Green Bond Framework document must
be prepared as per specific re-quirements.
Mandatory disclosure of the Framework prior
to or at issuance.

Green Bond Framework document
must be prepared as per specificrequirements. Mandatory disclosure of
the Framework prior to or at issuance.

Reporting prior toissuance

Legal documentation must include specificinformation regarding the environmental
objective of the bond and use of proceeds.

Legal documentation must include
specific information regarding the useof proceeds, management of proceeds,
external reviewer and plans for reporting after issuance.

External review
prior to issuance

Mandatory verification prior to issuance anddisclosure of verifier’s report prior to or at
issuance.

Mandatory verification prior to issuanceand disclosure of verifier’s report prior to
or at issuance.

Reporting afterissuance

Mandatory reporting with specificrequirements for contents of the report.
Annual reporting and disclosure ismandatory up to full allocation of proceeds
and in case of any material change inallocation of proceeds.

Mandatory reporting with specificrequirements for contents of the report.
Annual reporting and disclosure ismandatory for the entire period the bondremains outstanding.

Defines 2 types of reporting: Allocation
and Impact.

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Defines 3 types of reporting: Allocation,
Eligibility and Impact.

External review
after issuance

Mandatory verification at least once
after issuance and must be at or after full
allocation of proceeds. Mandatory disclosureof verifier’s report.

Mandatory verification at least once
after issuance, within two years of
is-suance. Mandatory disclosure ofverifier’s report.

Status of external
reviewers

Must be Registered under the Voluntary
Interim Registration Scheme.

Must be listed as an Approved Verifieron the Climate Bonds Initiative website.

Labelling ofexisting bonds

Allowed, with mandatory verification anddisclosure of key documents.

Allowed, with mandatory verificationand disclosure of key documents.

Climate Bonds Standard Version 3.0

Annex 3: Certification and the CBI Green Bond Database
The Climate Bonds Initiative maintains a comprehensive Green Bond Database which isused by index providers and other market players. The compilation and maintenance ofdataset is governed by the CBI Green Bond Database Methodology. The latest versionof this document is available from the CBI website.
The Methodology document provides a detailed description of the screening process
and rules for inclusion. Certification under the Climate Bonds Standard means thateligible debt instruments are automatically included in the Green Bond Database.
However, not all Certified debt instruments are eligible to be included in the Database.
The relevant provisions for inclusion in the CBI Green Bond Database are outlined below.
Types of debt instruments
Debt instruments issued by a Green Bond Fund are not eligible for inclusion in the
CBI green bond database to avoid double-counting. Such instruments are considered“repackaging” of existing green bonds.
Green Deposits products are not eligible for inclusion in the CBI green bond database as
they are not debt instruments and will typically lack a fixed amount to be raised under
the program and specific issue date.
Minimum term / duration
Instruments with an original term of less than one year are eligible for inclusion in the
CBI green bond database.
Disclosure after issuanceWithin 30 days of closing the Certified Climate Bond, Certified Climate Loan or other
Certified debt instrument, the Issuer/Borrower should notify Climate Bonds Initiativeof this and provide the following minimum information on the debt instrument: (1)amount issued with currency of issue, (2) date of issue, and (3) maturity date. If thisinformation is not available to CBI then the instrument is not eligible for inclusion in the
CBI green bond database.

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© Climate Bonds Initiative 201934

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