Commercial
Buildings:
What areemissions
performance
trajectories?

Trajectories apply only to commercial
buildings and are established forspecific building types (offices, hotels,shopping centers) on a city basis
where data is available.

15%

Trajectories are used to derive
emissions performance targets thatbond issuers must achieve to gain
Climate Bond Certification.

CO2CO22016
The start of the trajectory is thecarbon intensity (in kgCO2 /m2 terms)of the most energy-efficient buildings,
the top 15% of buildings in a city.

2050

0 CO2

Trajectories are linear and aim forzero emissions in 2050. This means
emissions performance targets
for bond issuers become moredemanding over time.

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

Establishing emissions performance
trajectories at the city level enables theCommercial Buildings Criteria to alignwith context of the local environment

Trajectories have a linear pathway fromthe carbon intensity of the most energyefficient buildings, the top 15% of buildings
in a city, to zero emissions in 2050.

The local environment incorporates
climate conditions and the carbon
intensity of the electricity grid

SYDThe Commercial Buildings Criteria
requires issuers to satisfy emissions
performance targets for buildings
they want included in a bondportfolio.
Targets are expressed in kgCO2 /m2
terms and derived from emissions
performance trajectories.

90NEYOEmission performance trajectories
start at the carbon intensity ofthe top 15% most energy-efficientbuildings in a city and end at zeroemissions in 2050.

10080FFICES

706050SING

40APONEWRE O

30YORKOFFICES

20FFICE

S

100

2016

2050

Carbon intensity (kgCO2 /m2)

Commercial
Buildings:
Emissions
Performance
Trajectories

Emission performance trajectories(blue lines) are different for each cityand each building type (e.g. offices,hotels, shopping centers).

A fixed line target (in black)is set to avoid issuers having toface the uncertainty of moving
performance targets

The fixed line target is the intersection
between the performance trajectory(in blue) and the midpoint of thebond’s term (in black)To gain Climate Bonds Certification,commercial buildings achieve andmaintain this fixed target for the lifeof the bond
100

Sydney Offices
Midpoint of10-year bondissued in 2020
(Year 2025)

The emissions performancetarget (kgCO2/sqm) that acommercial building needs toachieve depends on:

90
80
70
65.2 kgCO2/sqm

60
50

the emissions performance
trajectory for its city andbuilding type;

Sydney Offices

40
30

the bond issuance year; and20

the bond term.

Issuanceyear
2016

2020

10End ofbond term
2025

2030

02050

Carbon intensity (kgCO2 /m2)

Commercial
Buildings:Emissions
Performance
Targets

The blue line represents the emissions
performance trajectory for Sydney offices

3 different bond terms for Sydney offices

100

Sydney Offices 10-year bond:midpoint 2025

90

This chart uses the same example ofSydney offices.

65.2

Targets have been provided for threedifferent bond terms:
10 years
20 years
30 yearswith an issuance year of 2020.

80
70

30-year bond:midpoint 2035

60
50

52.2

40

39.1

30
20

20-year bond:midpoint 2030

This chart demonstrates thattargets become more stringent withincreasing bond terms.

10020162020 Issuance year

2050

Carbon intensity (kgCO2 /m2)

Commercial
Buildings:
Targets fordifferent
bond terms

3 different issuance years for Sydney offices

100

Sydney 10-year bond:
Offices Issued 2020
midpoint 2025

This chart uses the same example of
Sydney offices.

90
80
70
10-year bond:Issued 2030
midpoint 2035

65.2

Targets have been provided for threedifferent issuance years:
2020
2030
2040
with the same bond term of 10 years.

60
50
10-year bond:Issued 2040
midpoint 2045

39.1

40
30
20

This chart demonstrates that targets
become more stringent with laterissuance years.

1013.0Issuance year
2016

2020

02030

2040

2050

Carbon intensity (kgCO2 /m2)

Commercial
Buildings:
Targets fordifferent
issuance years