Climate Bonds
Guide to Certification
ASSETS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-industrial
levels.
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. ClimateBonds 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 Assets.

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 marketthat the Certified green assets meet thehighest standards for climate integrity.

Enhanced reputation benefits for Issuers,
Companies or Asset owners.

Climate Bonds Standard and Certification Scheme | Page 2

ASSET CERTIFICATIONThe owner of any asset, project or portfolio of assetsthat satisfies the relevent Sector Eligibility Criteria may
apply for Certification of such assets. The Certification is
not related to the financing of these assets.

Dynamic vs Static Certification
Static asset Certification refers to a project, asset or portfolio of assets, thecomposition of which does not change over the duration of the certification period- 12 months for a one-off asset Certification.
Dynamic asset Certification refers to a pool of assets into which new assets may
be added over the duration of certification. In a dynamic certification process,the Approved Verifier must assess the asset owner’s asset selection controls andprocedures.

LABEL
LEVEL 1Assets that are already aligned with 1.5 degree pathways qualify for Level 1 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 a single Asset, as well as for a series of Assetissuances (Programmatic):

Use ofSingle
Proceeds
Asset (UoP)

Programmatic
Programmatic
UoP

Single asset/Portfolio of assets.

Regular
Asset/Project Certification
Single asset/Portfolioof assets
underunderaasingle
singleCertification
Certificationagreement.
Agreement.

Suitability

Funds/Asset owners.

Funds/Asset owners.

Eligibility rules

Assets or projects fully eligible
under Sector Specific Criteria.

Assets or projects fully eligible
under Sector Specific Criteria.

Validity of certification

12 months

Initially
12 months, and renewed
12months

Types of instrumentsthat can be certified

Not linked to a debt Instrument.

Not linked to a debt Instrument.

Regularity of verification

At the time of applying for
certification.

At the time of applying for
certification and then annually
thereafter.

ExamplesCertification of a buildings'
portfolio of a Real Estate
Investment Trust (REIT).

Annual Certification of a portfolioof buildings of a Real Estate
Investment Trust (REIT).

No.

No.

Certification attaches toSafeguards onwider entity

Climate Bonds
Bonds Standard
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Certification Scheme
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Climateannually.

ASSET CERTIFICATION PROCESS
Certification is
confirmed or awarded

Asset Certification
Application
Asset Certification
1.Application:
Certification Agreement

Decision(for the initial Certification only)

1. Certification Agreement
2. Certification Information Form
3.3.Verification
ReportVerification
Report

2. Certification Information Form (CIF)

YES

Submitted to CBICertification
Awarded by
Climate Bonds Entity Certification

Asset owner torenew Certification?

Application:

1. Certification Agreement
2. Certification Information Form
3. Verification ReportNOYES

Submitted to CBICertification
Awarded by
Climate Bonds

End ofprocess

Annual Verificationand ReportingNO

Entity Certification Process

Certification
confirmed by
Climate Bonds
5 Years elapsed fromdate of Certification

YES

Entity toCertifciat

NO

Climate Bonds Standard and Certification Scheme | Page 5Contact usContact email for Certification Team: certification@climatebonds.net
Detailed requirements information on Certification can be found on the
Climate 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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