The Climate Bonds
expanded Standard andCertification Scheme
A NEW GENERATION OF CREDIBILITY IN LABELLED DEBTSHOW YOURCREDIBILITY WITH
CLIMATE BONDSCERTIFICATIONThe Climate Bonds Standard and Certification Scheme is a voluntarylabelling scheme for investments that address the challenge ofclimate change, and are consistent with the goal of limiting global
temperature rise to 1.5°C above pre-industrial levels.
Launched in 2012, the Standard was initially designed as a mechanism to support confidence
in the climate change action credentials of green bonds and other debt instruments and toprovide a tool to allow quick investment decision making. Climate Bonds have certified over
USD260bn of Use of Proceeds Green Bonds since the launch of the Certification Scheme. The
latest Standard expands Certification coverage to general purpose Assets and Entities andSustainability-linked debt instruments.
Certification under this Standard confirms that debt instruments, assets or entities meetcriteria published under the Climate Bonds Standard. Transparently developed sciencebased criteria underpin the Scheme and independent assessment is provided by a networkof Climate Bonds Approved Verifiers. An international independent Climate Bonds Standard
Board, comprised of institutional investor representatives and reportingto the Trustees of the Climate Bonds Initiative, provides oversight and a strong governanceframework for the Scheme.

Climate Bonds Standard and Certification Scheme | Page 2

OUR LABELS
Our expanded Standard andCertification Scheme offers twolevels of Certification:
LEVEL 1
Entities, Debt Instruments or Assets that are
already aligned with 1.5 degree pathways.
This category includes both those alreadynear net-zero and those above
net-zero but within sectoral 1.5 degree
pathways and transition plans that predictalignment with those pathways goingforward.

LEVEL 2
Entities or Sustainability-linked debt whosetransition plans predict that they will bealigned with 1.5 degree pathways by 2030.
Company Z

Transition

Greenhouse Gas Emissions

Company YCompany X

1.5˚C pathway for sector

AlignedTime

2030

Climate Bonds Standard and Certification Scheme | Page 3

The Certification label is an endorsementof the green credentials of the assets/
entities and debt instruments and theambition and credibility of corporatetransition plans.
The science-based eligibility criteria aredeveloped through a rigorous process,demonstrating credibility and robustness.
Certification increases visibility
to investors.

Benefits ofCertification

A globally recognised symbol of bestpractice in green finance.

Clearly demonstrates to the market thatthe certified instruments meet thehighest standards for climate integrity.
There is higher demand for Certified
bond issuances and potential pricebenefits for the issuer.
Enhanced reputation benefits for Issuers,
Companies or Asset owners.

Climate Bonds Standard and Certification Scheme | Page 4

Our Standard
Gold-standard labelling that aims to drive the global financial markets towards
investments consistent with the goal of the Paris Climate Agreement.

Ambitious••

Ambition is defined from a sectoral perspective by the Climate Bonds Eligibility criteria.
Performance 1.5 degree aligned, or on a pathway to alignment.

Transparent•

Requirements on disclosure of Certified instruments/entities.

Assured•External verification by a Climate Bonds Approved Verifier – before Certification andwhere required by the Standard for maintaining Certification.

Science-based•

Future targets are benchmarked against science-based, technologically feasible
pathways, and not against peers.

Climate Bonds Standard and Certification Scheme | Page 5

Get
Certified

Under our expanded Certification Scheme we are now able to certify:

12
3

Use of Proceeds (UoPs) debt instruments: The proceeds of such instruments areallocated to specific projects, assets, activities, or expenditures which align with theClimate Bonds Sector Specific Criteria.
Assets: Certification of the environmental credentials of specific projects, assets, or a portfolio ofassets, in accordance with the Climate Bonds Sector Specific Criteria.
Non-financial corporate entities: This certification is available to legal Entities that provide nonfinancial goods and services, including:••

4Entities with ambitious Performance Targets, that are aligned with the Climate Bonds Sector
Criteria at the time of Certification or that will do so by 2030, which have credible transition
plans and meet the disclosure requirements of the Standard.
General-purpose debt instruments issued by Certified Entities that meet above requirements.

Sustainability-linked debt instruments (SLDs): These are general-purpose debt instruments, thefinancial or structural characteristics of which can vary depending on whether the issuer achieves
predefined Performance Targets. Issuers of Certified SLDs are subject to the same requirements asfor Certified Entities.

Climate Bonds Standard and Certification Scheme | Page 6

The basic pillars for all types of certifications under the Standard are a standardised rule set ofsector level eligibility of projects, transparency, and external review by a Climate Bonds Approved
Verifier. Climate Bonds will be expanding the range of available sectors for all the certification
types. The following Sector Criteria are currently eligible for Certification:

Climate Bonds Certification
CRITERIASTATUS

Certification
available

Certification for part ofthe sector only

Certification
pending 2023

pofpofdkelinsie ityl
ti tbiEn
naaitstebSusdtsedse ocere
UsAsdkelinsie itylti tbiEn
naaitsteb
Su
sdts
ed
se ocer

Ase
Us

bt
debt
deENERGY

LAND USE & MARINE RESOURCES

Solar

Crop production

WindLivestock production

Geothermal

Commodity supply chains

Hydropower

Commercial forestry

Marine renewables

Ecosystem conservation & restoration

Electricity grids & storage

INDUSTRY

Mixed energy (utilities)

Cement production

Bioenergy

Steel production

Nuclear

Basic chemicals production

TRANSPORT

Specialist & intermediate chemicals

Public passenger transport

Hydrogen production, storage & transport

Private transport

Critical raw materials

Freight rail

Carbon capture storage

Water-borne

WASTE

Biofuels for transport

Preparation

Aviation

Reuse

WATER

Recycling

Water monitoring

Biological treatment

Water storage

Waste to energy

Water treatment

Landfill

Water distribution

ICT

Water desalination
Flood defence
Nature-based solutions
BUILDINGS
Residential
Commercial
Products & systems for efficiency
Urban development

Updated March 2023

© 2023 Climate Bonds Initiative 03/2023®

Contact usContact email for Certification Team: certification@climatebonds.net
Detailed requirements for eligible projects, assets or activities can be found on theClimate Bonds website: https://www.climatebonds.net/certification

Disclaimer: The information contained in this document does not constitute investment advice in any form or any invitation or inducement to engage in investment activity
and the Climate Bonds Initiative is not an investment adviser. Any reference to a financial organisation or debt instrument or investment product is for information purposes
only. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for any content on any external website.
Certification under the Climate Bond Standard relates exclusively to the conformity of one or more designated debt instruments, designated assets and/or designated entities
with the applicable Climate Bonds Standard at the time of certification. Certification under the Climate Bond Standard carries no implication (and should not be understoodas carrying any implication) as to any other aspect of any debt instrument or investment product or any collection of debt instruments or investment products or any asset orentity or group of assets or entities or as to continuing conformity at any time after the time of certification. In particular, such certification carries no implication (and should
not be understood as carrying any implication) that any stated target has been or will at any time be met or that any particular legal or regulatory requirement has been or will
be satisfied.
The Climate Bonds Initiative is not endorsing, recommending or advising on the financial merits or (subject to the previous paragraph) any other aspect of any debt instrument
or investment product or any collection of debt instruments or investment products or any asset or entity or group of assets or entities and no information within this document
should be taken as such, nor should any information in this document be relied upon in making any investment decision.
A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind, for any investment made by an individual or organisation, 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 document.
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