ELIGIBLE RESIDENTIAL
BUILDINGS
CHINA
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 useof proceeds in a Certified Climate Bond. Anybond being certified must also meet thereporting and transparency requirements ofthe overarching Climate Bonds Standard.
This brochure outlines the Buildings
Criteria for residential buildings in China.
For full details on the methodology andrequirements, see the detailed Criteriadocument.
When is a China residential building eligible
for certification?
It is eligible for certification if it meets thefollowing Climate Bonds requirements:• It meets the low carbon emissions
trajectory OR approved proxy

China Proxy
Residential buildings are eligible forcertification if the asset meets theapproved market proxy
The proxy diagram (Figure 1) showsthe established low carbon buildings
trajectory for residential buildings in
China. Any building is eligible if it meetsthe this pre-approved market proxy.
For example, for a 10-year bond issued in2018, the assets included in the issuancemust achieve an operations rating of 3Stars.
This proxy was established using datafrom the Evaluation Standard for Green
Buildings datebase provided by theMinistry of Housing and Urban-RuralDevelopment.

Low Carbon Building Criteria: China• It has or will undergo an upgrade or
retrofit which reduces its emissions
intensity by 30-50% (depending on thetenor of the bond).
What do the low carbon emissions
trajectories or proxy represent?
They represent rapid decarbonisation
trajectories aligned with the goals of theParis Agreement to limit global warming to
no more than 2 degrees above pre-industrial
levels, and ideally no more than 1.5 degrees.
Trajectories are expressed as an emission
intensity metric: kg CO e/m2 while proxies
2
are expressed using a range of building codes
and rating scheme including build year or post
occupancy performance rating and standards.

pathway down to zero carbon in 2050. They
are location specific to reflect a number offactors which vary significantly by region.
Proxies use differing techniques to measure
the correlation between an established codeot rating scheme and it ability to produceemissions reductions in-line with the Criteria& rapid decarbonisation.
Where can issuers go to find more
information to check compliance?
The Proxy for China is illustrated in the box
below. More information about compliancefor China can be found on the Low Carbon
Building’s Residential Criteria page.
Want more information?
Contact Cory.Nestor@ClimateBonds.net
regarding the Low Carbon Building Criteria;

How have trajectories and proxies been
established?
Trajectories have been established by taking
the emissions intensity of the top 15% ofbuildings in that city and drawing a linear

Contact Matteo.Bigoni@ClimateBonds.net
regarding portfolio/asset certification.

Figure 1 . Low carbon proxy requirements for China

DesignOperations

Does
notqualify

3StarRating

Note: The Evaluation Standard for Green Buildings provides ratings for both design andoperation of residential and commercial buildings. For a building to qualify, it must achieve
a operations based 3-star rating

1How is a market proxyestablished?
Steps for developing a proxy
Each proxy uses the a similar approach,making global reporting more harmonised,allowing issuers and investors to compare
across markets. The following steps
highlight the fundamentals.
Proxies are established for specificbuilding types (offices, hotels, shoppingcenters) on a city basis where data isavailable.

Country

15%

Proxies are representative of the top
15% most emission efficient buildings
in a particular market.

Proxies are used to derive currently
best available building code or rating
scheme that bond issuers must achieve
to gain Climate Bond Certification.

Proxies are placeholders until more data
becomes available. This means proxies
expire or are reassessed on an ongoingbasis.

ProxyPDF

An issuer can find a list of available
proxies for residential here andcommercial here.

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 nancialorganisation 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 an individual or organisation makes, nor for any investment made by third parties on behalf of an individual or organisation, based in whole orin part on any information contained within this, or any other Climate Bonds Initiative public communication. © Climate Bonds Initiative June 2018.

Low Carbon Building Criteria: China2