Climate Bonds
Guide to Certification
USE OF PROCEEDS DEBT INSTRUMENTS

SHOW YOURCREDIBILITY WITH
CLIMATE BONDSCERTIFICATIONThe Climate Bonds Standard and Certification Scheme is avoluntary labelling scheme for investments that address thechallenge of climate change, and are consistent with the goal oflimiting global temperature rise to 1.5°C above pre-industriallevels.
Launched in 2012, the Standard was initially designed as a mechanism to supportconfidence in the climate change action credentials of green bonds and other debt
instruments and to provide a tool to allow quick investment decision making. Climate
Bonds have Certified over USD270bn of Use of Proceeds Green Bonds since the launch ofthe Certification Scheme.
The latest Standard expands Certification coverage to general purpose instruments,
such as Sustainability-linked debt instruments, Assets and Entities. Certification under
this Standard confirms that debt instruments, assets, or entities meet Criteria publishedunder the Climate Bonds Standard. Transparently developed scientific criteria underpin
the Scheme and independent assessment is provided by a network of Climate Bonds
Approved Verifiers.
An international independent Climate Bonds Standard Board, comprised of institutional
investor representatives and reporting to the Trustees of the Climate Bonds Initiative,
provides oversight and a strong governance framework for the Scheme.

Climate Bonds Standard and Certification Scheme | Page 1

The Certification label is anendorsement of the green credentials ofthe Use of Proceeds.
The scienced-based eligibility criteria
are developed through a rigorous
process, demonstrating credibility androbustness.

Benefits ofCertification

Certification increases visibility
to investors.
A globally recognised symbol of bestpractice in green finance.

Clearly demonstrates to the market
that the Certified green assets meet thehighest standards for climate integrity.

Enhanced reputation benefits for Issuers,Companies or Asset owners.

Certification confirms alignment with theICMA Green Bond Principles.

Climate Bonds Standard and Certification Scheme | Page 2

USE OF PROCEEDSCERTIFICATION

The proceeds of these debt instruments are allocated to specific assets, activities, orexpenditures which align with the Climate Bonds Sector Specific Criteria.
Issuers of Certified Use of Proceeds debt instruments need to comply with specificrequirements at both the Pre-Issuance stage prior to issuance of the instrument, andat the Post-Issuance stage to confirm the validity of the Certification label.
Issuers can also apply for Retroactive Certification at any time while the debt
instrument is outstanding. Programmatic Certification is available for frequentissuers of Certified Debt Instruments.

Assets that are already aligned with 1.5 degree pathways qualify for aligned Certification.
This category includes both those already near net-zero and those above net-zero but
within sectoral 1.5 degree pathways and transition plans that predict alignment with thosepathways going forward.

Climate Bonds Standard and Certification Scheme | Page 3

Certification is available for Single Use of Proceeds debt instruments,
as well as for a Series of issuances (Programmatic UoP):
Use of Proceeds (UoP)

Programmatic UoPSingle UoP debt instrument.

Each debtEachdebtinstrument
instrumentinina aseries
series ofof regular
UoPdebt
debtinstrument
instrument
regularUoP
issuances
undera single
issuedundera single
Certification
Certification Agreement.
Agreement.

Suitability

Issuers of Bonds the proceeds ofwhich will be used to fund specificgreen or transition assets or
projects eligible under the Climate
Bonds Eligibility Criteria.

Issuers of Bonds the proceeds ofwhich will be used to fund specificgreen or transition assets or
projects eligible under the Climate
Bonds Eligibility Criteria.

Eligibility rules

Proceeds to finance Capex andOpex for assets or projects fully
eligible under Sector Specificcriteria. Process aligned with ICMA
Green Bond Principles.

Proceeds to finance Capex andOpex for assets or projects fully
eligible under Sector Specificcriteria. Process aligned with ICMA
Green Bond Principles.

Validity of certification

Term of bond.

Term of each bond in the program.

Types of instrumentsthat can be certified

Any type of debt instrument
irrespective of tenor.

Any type of debt instrument
irrespective of tenor.

Regularity of verification

At Pre-issuance and post-issuanceat full allocation.

At Pre-issuance of the first
instrument in the program andthen annually for the duration ofthe program.

ExamplesCertification of a bond raised todevelop a solar farm or to build acement manufacturing facility
eligible under the Sector EligibilityCriteria.

Programmatic certification may
apply to a bank which regularly
issues diﬀerent types ofinstruments (bonds, Commercial
paper, green deposits) against apool of green loans or to acompany constructing electricpassenger train infrastructure over
several years.

No.

No.

Certification attaches to

Safeguards on
wider entity

Climate Bonds Standard and Certification Scheme | Page 4

CERTIFICATION PROCESSUse of Proceeds (UoP) debt instruments

Certification is
confirmed or awarded

Pre-issuance application
for certification:

Decision

1. Green Bond Framework
2. Certification Agreement
3. Certification Information Form (CIF)
4. Verification Report

Documents

Submitted to CBICertification
Awarded by
Climate Bonds
Bond is Issued

24 months to 5 years(OR LONGER IF JUSTIFIED)

Post Issuance
Verification Report
Certification
confirmed by
Climate Bonds
New Issuancesin the year?

Issuer submits
new CBIFCIF

YES

Certificationof new bonds
Awarded by
Climate Bonds

NO

Annual post-issuance
verification for
new bonds

Annual Reportby IssuerNO

Have all theBonds in the
Program matured?

YES

Climate Bonds Standard and Certification Scheme | Page 5

End ofprocess

Contact usContact email for Certification Team: certification@climatebonds.net
Detailed requirements information on Certification 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.
Version: 29062023