ELIGIBLE COMMERCIAL
BUILDINGS
KOREA

Seoul

Low Carbon Buildings Criteria
under the Climate Bonds Standard

What are the Low Carbon
Buildings Criteria?
They are the technicalstandards that buildings(or a portfolio of buildings)
must satisfy to be eligible as nominated use ofproceeds in a Certified Climate Bond. Any bondbeing certified must also meet the reporting andtransparency requirements of the overarching
Climate Bonds Standard.

• It has or will undergo an upgrade or retrofit
which reduces its emissions intensity by 3050% (depending on the tenor of the bond).

specific to reflect a number of factors whichvary significantly by region. Proxies use differing
techniques to measure the correlation between
an established code or rating scheme and it
ability to produce emissions reductions in-linewith the Criteria & rapid decarbonisation.

What do the low carbon emissions
trajectories or proxy represent?

This brochure outlines the Buildings Criteria forcommercial buildings in Korea. For full details
on the methodology and requirements, see thedetailed Criteria document.

They represent rapid decarbonisation trajectoriesaligned with the goals of the Paris Agreement tolimit global warming to no more than 2 degrees
above pre-industrial levels, and ideally no morethan 1.5 degrees. Trajectories are expressed as anemission intensity metric: kg CO2 e/m2 while proxies
are expressed using a range of building codes
and rating scheme including build year or post
occupancy performance rating and standards.

When is a Korea commercial building eligible
for certification?

How have trajectories and proxies
been established?

It is eligible for certification if it meets thefollowing Climate Bonds requirements:

Trajectories have been established by taking theemissions intensity of the top 15% of buildingsin that city and drawing a linear pathway down
to zero carbon in 2050. They are location

Seoul Trajectory
Commercial buildings are eligible forcertification if the asset‘s emissions
intensity lies below the establishedhurdle rate
The trajectory chart (Figure 1) shows theestablished low carbon buildings trajectoryfor commercial buildings in Seoul andsourrounding region. Any building is eligible if
it meets the emissions intensity target for themid-point of their bond.
For example, for a 10-year bond issued incurrent Year, the emissions intensity at thetime of issuance for a building in Seoul mustbe at or below 45.05kg/ CO2e.

The trajectory for Korea is illustrated in the box
below. More information about compliance for
Korea can be found on the Low Carbon Building’s
Commercial Criteria page.

Want more information?
Contact standards@climatebonds.net
regarding the Low Carbon Building Criteria

Figure 1. Low carbon trajectory for Seoul & surrounding region
56.50
45.00
Emissions Intensity (kg CO2 e/ m2)• It meets the low carbon emissions trajectory
OR an approved proxy

Where can issuers go to find more
information to check compliance?

10 yr
37.00

20 yr
29.00

2018

2023

2028

30 yr

2033

2050

Note: Examples have been included for three different bond tenors, 10 yr, 20 yr, and 30 yr
showing how the desired tenor of the issuer effects the emissions intensity target of the bond.

Low Carbon Building Criteria: Korea Climate Bonds Initiative1

How is an emissions
performance trajectory
established?
Steps for developing a trajectory
Each trajectory uses the same approach,making global reporting more harmonised,allowing issuers and investors to compare
across markets. The following steps highlightthe fundamentals.
Trajectories are established for specificbuilding types (offices, hotels, shoppingcenters) on a city/region or country basis
where data is available.

Trajectories are used to derive emissions
performance targets that bond issuers mustachieve to gain Climate Bond Certification.

15%
CO2
CO20 CO2
The start of the trajectory is the top
15% most emission efficient buildings
in a city given as the carbon intensity
metric kg CO2/m2.

Trajectories are linear and aim for zeroemissions in 2050. This means emissions
performance targets for bond issuers
become more demanding over time.

The Climate Bonds CO2 Target Calculator
automatically calculates the emissions
performance targets for an issuer basedon city, building type, bond issuance year
and bond term.

Disclaimer: The information contained in this communication does not constitute investment advice in any form and the Climate Bonds Initiative is not an investment adviser. Any reference to a nancial organisation
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 content on external websites. The Climate
Bonds Initiative is not endorsing, recommending or advising on the merits or otherwise of any investment 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. A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind, for any investment anindividual 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. © Climate Bonds Initiative June 2018.

Low Carbon Building Criteria: Korea Climate Bonds Initiative2