April 2024

Climate Bonds Initiative
Green Bond Dataset
Methodology

Green Bond Dataset Methodology Climate Bonds Initiative1

Contents
1. Introduction 2

1.1 Foundational principles 2

2. The Climate Bonds Initiative Green Bond Dataset
screening process 3
2.1 Overview of the screening process 3(A) Identification and pre-requisite checks 4(B) Screening sectors and green credentials 4(C) Evaluating the use of proceeds 5
2.2 Use of proceeds information sources 6
2.3 Classification of bonds 7

3. Pending deals and resolution process 8
4. Exclusions 8
5. Reclassification of a bond 8
The Climate Bonds Standard and Certification Scheme 9
The Climate Bonds Taxonomy 10

Glossary
Green bond framework: A document produced by the issuer whicharticulates the intended use of proceeds (UoP) of bonds bearing
the green label, outlining eligible categories for assets, projects, andactivities designed to address critical areas of concern, including
climate change, depletion of natural resources, biodiversity loss andpollution control, and the corresponding eligibility criteria. Beyond
the UoP, a robust framework typically encompasses key sections suchas processes for project evaluation and selection, management ofproceeds, and reporting.
Use of proceeds: Refers to how the funds of a green bond are invested
in projects contributing to mitigation and/or environmental objectives.
External reviews: A review of the green bond framework and otherdocumentation by a second or third party, which includes second party
opinions, green bond ratings, certification, assurance, etc. Generally,
external reviews confirm compliance with the Climate Bonds Standard(CBS), Green Bond Principles (GBP) or Green Loan Principles (GLP).

1. Introduction
Climate Bonds Initiative (Climate Bonds) is an international not-for-profit
organisation working to mobilise global capital for climate action. It
promotes investment in projects and assets needed for a rapid transition toa low-carbon, climate-resilient, and just economy.
Climate Bonds assesses self-labelled debt instruments against its Market
Intelligence data products methodologies. Bonds meeting the requirements
outlined in the screening methodologies qualify for inclusion in Climate
Bonds’ data products.
This document describes the requirements for inclusion, screening, andmaintenance for the Green Bond Dataset (GBD).

1.1 Foundational principles
Climate Bonds aims to establish a robust framework for evaluating andcategorising green assets, projects, activities, and expenditures by basing
this screening methodology on a set of foundational principles.
1. Green credentials based on mitigation1 and environmental impact:
The assets, projects, and activities should contribute to significant reduced
emissions or demonstrate a positive impact on the environment, thus
participating in the advancement of conservation and ecosystem protection.
2. Science-based: The methodology should be informed by soundscientific research, utilising data-driven insights to validate the contribution
to climate change mitigation or positive environmental benefits of theassets or projects. This is to be informed by existing taxonomies, labels,
criteria as noted in the methodology.
3. Flexibility and practicality: The methodology should be designed
to strike a balance between scientific rigour and market usability,
accommodating changes in technology, scientific understanding, andevolving mitigation and environmental priorities.
4. Minimum climate and environmental safeguards: If there isan absence of sectoral guidance on eligible assets, minimum climate
safeguards are used to prevent unfavourable outcomes on emissions
mitigation and the environment. These minimum safeguards ensure that
activities with potential for adverse impact are screened out.

Certified Climate debt instruments: Bonds, loans, debt
programmes, deposits and other instruments that are Certified under
the Climate Bonds Standard. The green credentials of the assets/
projects are verified by a Climate Bonds Approved Verifier against
Sector Criteria to determine if the assets/projects being financed arewithin a trajectory to full decarbonisation by 2050.

1. Recognising the evolving landscape of climate solutions, for the purposes of the GBD Methodology,
the green credentials of assets, projects, and activities extend beyond present net-zero considerations,
including activities deemed crucial for the post-2050 transition.
It is imperative to ensure no industry is left behind, addressing emissions levels that may impede the lowcarbon transition.
Progress has been achieved in net-zero activities, yet many industries, especially in hard-to-abate sectors
like cement, steel, and aviation, maintain emission levels that could hinder progress. Addressing this means
companies producing goods and services needed into the long term are progressively decarbonising
their activities. Simultaneously, companies engaged in activities that cannot be aligned with a low-carbon
economy, where substitutes exist, must transition away from current activities.
Rapid scaling of activities facilitating such transitions is crucial. These transition activities contribute to GHG
mitigation and align with Climate Bonds’ commitment to a low-carbon future.

Green Bond Dataset Methodology Climate Bonds Initiative22. The Climate Bonds Initiative Green Bond Dataset screening process
2.1 Overview of the screening process
The three-step screening process to classify a green bond as aligned covers
the following:
A. Identification of debt and pre-requisite checks. Basic checks toascertain whether or not a full screening assessment is possible/necessary.

Note: the Climate Bonds GBD Methodology explicitly focuses on screening
the UoP and assessing the credibility of the green credentials. Entity levelassessments are beyond the scope of this methodology. Any inquiries
or concerns regarding entity-level transition plan assessments should
be addressed through independent evaluations conducted by parties
responsible for comprehensive issuer assessments.

B. Screening of green credentials, which relies on determining alignment
to a set of sector-specific definitions and eligibility conditions.
C. Evaluating the UoP threshold. Only bonds which are expected
to allocate 100% of net proceeds to green assets, with a minimum of
90% directed specifically to aligned green assets, projects, activities, or
expenditures, are included in the Climate Bonds GBD.

Navigating the green frontier: Climate Bonds GBD screening journey
Debtlabelledby theissuerCertified
ClimateBond*

Deal meets Climate Bonds
GBD Instrument & disclosure
requirements

Deal does not meet Climate
Bonds GBD instrument &disclosure requirements

Green label

OtherlabelsAligned Green Bond List

Short-term debt
instruments

Separate non-debt
instrument database

Confidential deals

Confidential
deals list**

Debt meets Climate Bonds UoP
and other Climate Bonds GBD
requirements

Aligned Green Bond List

Debt does not meet Climate
Bonds GBD requirements

Non-aligned Green Bond List

Debt meets Climate Bonds UoP
and other Climate Bonds GBD
requirements

Aligned Green Bond List
Bonds referred for analysis for inclusionin other Climate Bonds databases,
e.g., Social and Sustainability bond list

Debt does not meet Climate
Bonds GBD requirements

Bonds referred for analysis for inclusionin other Climate Bonds databases,
e.g., Social and Sustainability bond list

* Certified Climate debt instruments are fully aligned with the Green Bond Principles/Green Loan Principles.
They can be considered as a subset of the green debt market.
** Confidential Certified Climate debt instruments list is not available to the public or data partners.

Green Bond Dataset Methodology Climate Bonds Initiative3

A. Identification and pre-requisite checks
The process of identifying eligible bonds and loans
involves a comprehensive search across various financial
and other platforms, with a focus on commonly usedlabels such as ‘green bond’. A full list of search criteria is notincluded in this document.
The label is used primarily to identify bonds for screening, but theassessment of the green credentials is based on the assets, projects,
activities, or expenditures financed. For this reason, other labels are also
considered. Examples include, but are not limited to:Blue, marine conservation and similar
Climate action
Climate-awareness
Energy efficiency, PACE and similar
Energy transition/Sustainable transition
Environmental
ESG, SDG, sustainability, social and similar
GreenStar (BAM)
Solar, wind, renewable energy and similar
Transition
Water bond and similar
All deals in the Climate Bonds Green Bond Dataset (GBD) are screened
to verify the integrity of their green credentials. Inclusion of any financial
instrument in the Climate Bonds GBD is contingent upon three requirements:
1. It must qualify as a debt instrument, which includes but is not limited
to bonds, asset-backed securities, and loans. While the GBD includes
information on commercial papers and loans, the coverage is not exhaustive.
2. It must bear a green label, indicating that it is self-labelled by the issuer
as a green bond or under a similar nomenclature. Deals which finance eligible
UoP, but are not self-labelled by the issuer, are not eligible for inclusion.
3. It must be accompanied by adequate public disclosure that is
sufficient to determine if the UoP qualify for inclusion, as well as to identify
and track basic information about the debt instruments (namely, theamount issued, issue date, and maturity date of the instrument).
Note: the inclusion of Certified Climate debt instruments in the Climate
Bonds GBD is not automatic. Certification can also extend to short-term
debt2 and private or confidential deals that lack public information. By
contrast, the GBD specifically captures labelled debt instruments that havesettled with a defined amount outstanding, and for which there is at least aminimum level of public disclosure, i.e., amount issued, issue date, type of
instrument. Therefore, there may be Certified deals which do not qualify forinclusion in the Climate Bonds GBD.

2. Having a term of less than one year.
3. The Climate Bonds Standard and Certification Scheme is a voluntary initiative, which allows issuers
to clearly demonstrate to the market that their bond or loan meets science-based standards for climate
integrity, and best practice standards for management of proceeds and transparency.
4. For the purpose of this methodology, the focus is on the EU Taxonomy’s substantial contribution toclimate change mitigation criteria (SCC), which are used as a reference and adapted for specific sectors
within this framework.

Green Bond Dataset Methodology Climate Bonds Initiative

Labelled loans
Green loans are a form of financing that enables borrowers to raise
capital for projects that have a positive environmental impact. Like
green bonds, they are dependent on environmental or climate criteria
for the planned UoP. However, these loans are typically smaller insize than green bonds and tend to be arranged via bilateral privateagreements. This means it is often hard to (i) discover relevant deals,and (ii) find essential information about the deals, including details
such as loan amount and term, as well as UoP.
Climate Bonds tracks green loans within the Climate Bonds GBD, butwith the caveat that this data is collected on a best-efforts basis anddeals may take longer to be added to the dataset.

B. Screening sectors and green credentials
Each bond or other debt instrument is reviewed based on
the green credentials of the UoP. This may be earmarked
proceeds for asset-linked, senior unsecured or secured
bonds, projects funded by a project bond, or assets backing
an ABS or other secured debt. The key is that the asset,
project, or activity to be (re)financed is green, i.e., yields
mitigation and/or environmental benefits. At issuance, the issuer must
declare the eligible asset and project categories. Most issuers specificallylink their deal and framework to the GBP or GLP and obtain an external
review to confirm compliance or choose to certify their instruments under
the Climate Bonds Standard.3 This helps to improve market integrity.
A matrix of eligible assets, projects, and activities provides theassessment guidelines for the Climate Bonds GBD Methodology. While
informed to a degree by the Climate Bonds Taxonomy and the Climate
Bonds Sector Criteria, and with additional insights from the EU Taxonomy’s
substantial contribution to climate change mitigation criteria (SCC) andother market standards, the guidelines outlined in this methodology havehistorically been adapted to (i) allow assessment in the absence of metrics
disclosure and/or third-party verification of metrics, and (ii) encourage
investment in nascent and harder-to-abate sectors.4 However, the Climate
Bonds GBD screening criteria are now being tightened in more establishedsectors such as buildings and transport as the green bond market matures
and the need to decarbonise becomes more pressing.

Margin of flexibility
The Climate Bonds GBD Methodology requires that bonds allocate 100% of net
proceeds to green assets. Within this, a minimum of 90% must be directed toeligible green assets, projects, and activities. This allows for a margin of flexibility,
intended to cover up to 10% of the total deal size where there is uncertaintyof alignment with the methodology. This includes sectors where metrics are
not readily available or need further assessment against a benchmark or
proxy. In such cases, the methodology employs flexible approaches.
The margin of flexibility also provides room to deal with interconnectedsustainable development outcomes which are highly contextual. The
methodology encapsulates this approach to infrastructure financing
in the context of very low-intensity, less-developed economies, where
infrastructure to allow access to basic amenities and services may be
eligible. These instances will be assessed on a case-by-case basis, taking
into account the relevant proportion of the UoP, along with the phase of
economic development, and the per-capita emissions of the jurisdiction
where the proceeds are deployed.

4Where there is insufficient disclosure to accurately assess the percentage,
Climate Bonds will apply proxy evaluation approaches. In instances of
uncertainty, the percentage will be assumed to exceed 10%.
The margin of flexibility is subject to some absolute exclusions related tofossil fuels. Even if proceeds allocated to these areas are less than 10%, thedeal will be excluded. An illustrative list is provided in the table below.

Key areas for minimum safeguards(absolute exclusions)
Fossil fuel exploration, production, and refining
Solid fossil fuel-based heat, cool, and electricity generation
Transportation of fossil fuels

Our best practice recommendations• A green financing framework and independent external review
at issuance and after allocation of the proceeds, with detailed
disclosure of key technical thresholds and parameters of eligible
green projects under the section of UoP;
• Compliant with the practice recommended by the latest edition of
ICMA Green Bond Principles (GBP), with all the net proceeds to beembarked on eligible green projects identified;• Seek alignment with relevant market standards such as the Climate
Bonds Standard and sector eligibility criteria or the EU Taxonomy
where appropriate;• Identify asset pool or provide guidance on proceeds allocation at
issuance, preferably communicated in investor presentations or final
terms, if possible and permitted by regulations;• Provide contact details of the investor relations and funding teams
to facilitate information flow with stakeholders;• Clearly set out commitment, and a timeline, if possible, to publish
post-issuance report on allocations and impacts;• Post-issuance report should clearly specify which eligible green
projects the net proceeds have funded, conduct technical screening
criteria alignment mapping with relevant market standards whereappropriate, and be independently reviewed.

C. Evaluating the use of proceeds
Eligible use of proceeds
Not all activities that can support a low-carbon economy
are part of the GBD Methodology yet. Over time, further
economic activities from different sectors and sub-sectors
could be included, as these become relevant and theirintegration into the GBD Methodology becomes practicable.
In the absence of established eligibility criteria for the assessment of assets
and activities, deals will be screened on a case-by-case basis.

5. In fact, it forms the basis of the Buildings (Upgrade) Sector Criteria used for Certification.
6. For instance, if the efficiency gain from the retrofit is 10%, but the building attains an eligible building
certification or ranks within the top 15% of local performers post-retrofit, it qualifies for eligibility.
7. Enabling expenses include, but are not limited to, related installation, repair and maintenance costs.
8. Climate Bonds Initiative, n.d. Adaptation and Resilience.
https://www.climatebonds.net/adaptation-and-resilience

Green Bond Dataset Methodology Climate Bonds Initiative

Lookback period
In cases of complex assessments involving the green credentials of the UoP,
Climate Bonds employs a two-year lookback period. This entails analysing an
issuer’s expenditures during the preceding two years, allowing for a thoroughassessment of their alignment with the eligibility criteria outlined in thismethodology. This approach was selected for its practicality in addressing thecommon delay associated with obtaining detailed expenditure allocation datafor green bond projects, typically unavailable until a year after bond issuance.

Tracking the wider labelled market: social versus green
Certain assets, projects and activities may have both green and social
benefits. To qualify for inclusion in the Climate Bonds GBD, the green
credential must be apparent for all named project categories. 100% of net
proceeds must be allocated to green assets, with a minimum of 90% directed
specifically to eligible UoP, in alignment with the GBD Methodology.
Issuers are advised to state if their projects meet both social and green criteria.
An issuer financing social housing may also require that properties are energy
efficient to a specific (ideally high) standard. However, without an explicit
green designation, the bond will not be included in the Climate Bonds GBD.

Instruments with hybrid structures
Hybrid instruments that have a performance-linked structure as well asa UoP structure will be referred to the relevant Climate Bonds dataset forinclusion pending alignment with the respective screening methodology,
in addition to inclusion in the GBD. Sustainability-linked bonds (SLBs) may
thus be included in more than one dataset.

Financing capital assets versus eligible expenses
Both capital expenditure (capex) and operating expenses (opex) are eligible
when applied towards aligned UoP.
For capex, improvements in assets, such as enhancing energy efficiency or
climate resilience, are accepted, subject to specified benchmarks.5 Property
capex, for instance, requires a 30% improvement in energy efficiency, andproxies may be considered for the assessment.6
While general operating expenses may not be directly linked to green
assets, funding enabling expenses7 for deploying climate-friendly projects
is considered eligible. Examples include training farmers on sustainableagriculture practices or financing the measurement and tracking of climate
impacts and pollution control, categorised as eligible adaptation expenses.

Adaptation and resilience (A&R) measures
Climate Bonds set up an Adaptation & Resilience Expert Group (AREG)8 to develop
high-level guidance for determining when projects and assets are compatible witha climate-resilient economy. Climate resilience covers assessment of risks,
which tend to be idiosyncratic depending on geographic location and local
climate, as well as developing measures to address and adapt to acute events(e.g., storms) and long-term changes (e.g., temperature and sea level rises).
As a first step, Climate Bonds has published the Climate Resilience
Principles.8 These provide a framework for issuers to demonstrate that, forthe assets and activities (re)financed via the bond, they:• understand the climate risks faced by the asset, activity or system in question;• have addressed those risks by undertaking risk-reduction measuresand adopting flexible management plans that take account of inherent
uncertainties around climate change, and ensuring that the asset, activity orsystem is robust, flexible and fit-for-purpose in the face of that uncertainty;• can deliver resilience benefits over and above addressing identified risks(for system-focused investments); and• are undertaking regular (re)evaluation of the asset and/or system’s climate
resilience performance, adjusting to risk reduction measures over time as needed.

5

These types of measures and programmes could involve for example
physical assets (e.g., coastal flood defences such as levees (Louisiana)or dykes (Netherlands)), nature conservancy (e.g., land banks) andreforestation, as well as project management that improves resilience andthe ongoing assessment of impact. So far, investments have been primarily
in physical assets and projects, often in combination with mitigation
measures in water management and sustainable land use.

Research and development (R&D)
Climate Bonds recognised the crucial role of scientific R&D, particularlyin the context of emerging technologies, in facilitating the transition to
net zero. Therefore, Climate Bonds endorses and promotes R&D efforts.
However, assessing the impact of R&D poses challenges due to its
speculative nature and the inherent uncertainties surrounding its outcomes.
• Advanced R&D. Investments in such advanced R&D are more likely toyield immediate to near-term positive climate benefits, qualifying themfor consideration as green UoP. Examples include pilot projects for new
technologies or climate-resilient projects, and products with potential longterm benefits. Spatial observation aimed at identifying, verifying, and/or
implementing mitigation and adaptation measures may also qualify.
• Early-stage R&D. For earlier stage R&D to be eligible, more detailwould be required. For example, the R&D should be accompanied by aclear plan or strategy. The aims of the R&D should have clear climaterelated goals, such as the reduction in emissions or the reduction in
the use of raw materials. Targeted processes and products should beclearly specified. Moreover, the determination of projects, allocation ofproceeds, monitoring and reporting should fall within the framework of
GBP, meaning that R&D expenditure should be continually assessed withclimate-related goals in mind.
An example of eligible earlier stage R&D is that of bonds issued by NXP,
the global semiconductor company. NXP clearly set out a strategy for its
R&D in its Green Bond Framework with an overall climate-related goal of
improving energy efficiency. Detailed descriptions of the opportunities
were outlined with reference to given products and processes. These
details were embedded in a broader process which explained how NXP
planned to manage, monitor and report on the proceeds raised.
• Sovereigns. At the sovereign level, it is acknowledged that national
governments play a vital role in providing funding for early-stage research
programs. While these programmes may have limited immediate practicalapplications or yield climate benefits only in the medium to long term,such investments are considered eligible.
Overall, acceptable R&D counts towards eligible UoP. Note that if the type of
R&D is not specified, Climate Bonds will tend to err on the side of caution.

Pure play investments
For the purpose of this methodology, pure play companies are defined as thosethat (i) generate over 90% of their revenues from eligible assets, projects
and activities, in accordance with the sector-specific screening indicators
outlined in a matrix of eligible assets, projects and activities, and (ii) do notparticipate in any ineligible activities (e.g., fossil fuel production, exploration
or extraction). Lending by banks to pure play companies within their green
loan portfolios (linked to green bond issuance) is deemed to be eligible
under the Climate Bonds GBD Methodology.

Climate Bonds also allows debt financing of M&A where the acquiredcompany is a pure play. Additionally, equity investments in pure playcompanies or assets within bank portfolios are allowed if the investor
retains a controlling stake.

Referencing Climate Bonds GBD Methodology in the market
Green bond issuers wishing to incorporate the criteria outlined inthis methodology into their green finance frameworks can formallyreference it as follows:“This framework is informed by industry guidelines and principles,
including the International Capital Markets Association Green Bond
Principles (2021) and Climate Bonds Initiative’s Green Bond Dataset
Methodology (2024).”

Other enabling activities
Climate Bonds is keen to promote activities which enable the journey to netzero emissions. As a result, activities such as the manufacture of enablingproducts and related components are considered eligible. These include,
but are not limited to, the manufacture and supply chains of products suchas electric vehicles (EVs), and eligible energy components and technology in
general. In addition, activities such as advisory or consultancy, as well as theretraining of workers – whether within the framework of a company or on abroader economic scale, as permitted by the NextGenerationEU green bondframework9 – are considered eligible.

2.2 Use of proceeds information sources
A variety of sources is used for collecting the UoP information. These may
include, but are not limited to, the bond prospectus, final term sheet,news releases, second party opinions (SPOs), and other external reviews,
post-issuance reports and written confirmation from the issuer itself or fromother involved parties, such as underwriters or external review providers.

External reviews
We consider all types of external assessments (see summary table
overleaf). An external review is recommended but not required if equivalent
information is clearly disclosed by the issuer in a bond framework,
prospectus or other document. Equivalent information covers the four
principles of GBP/GLP, namely:
1. Pre-determined eligibility criteria
2. Information on the selection process
3. Management of proceeds to ensure allocation
4. Post-issuance reporting (at least on allocations)Obtaining an external review does not lead to automatic inclusion in the Climate
Bonds GBD, as compliance with GBP/GLP does not mean that the categories
meet all the inclusion criteria. Rather, the review as well as other information
disclosed by the issuer is independently assessed for alignment to sectorspecific definitions and eligibility conditions under this methodology.
We will consider bonds for which there is no external review, if adequate
disclosure on the assets financed is provided by the issuer. For instance, US
Munis, Solar ABS, PACE ABS and domestic market Chinese issuers typicallyprovide this information in the bond prospectus.

8. Climate Bonds Initiative, n.d. Climate Resilience Principles. https://www.climatebonds.net/climateresilience-principles
9. European Commission, 2021. NextGenerationEU Green Bonds. https://commission.europa.eu/strategyand-policy/eu-budget/eu-borrower-investor-relations/nextgenerationeu-green-bonds_en

Green Bond Dataset Methodology Climate Bonds Initiative

6

Overview of external review types and providers
Pre-issuance review

Scope

Providers (examples)

Assurance

Positive or negative assurance on compliance with the GBP/GLP

EY, Deloitte, KPMG

Second Party Opinion (SPO)

Confirm compliance with GBP/GLP. Provide assessment of issuer’s green bondframework. Some analyse the green credentials of eligible assets.

CICERO, DNV-GL, Sustainalytics,
Vigeo Eiris, ISS-Oekom

Green bond rating

Assess the bond’s alignment with GBP and integrity of its green credentials.
(NB: Credit ratings, increasingly incorporating ESG factors, are assessed separately.)

S&P, RAM (Malaysia),
R&I and JCRA (Japan)

Pre-issuance verification of the
Climate Bonds Certification

Third party verification confirms that the process followed by the issuer and
UoP adhere to the Climate Bonds Standard and sector specific criteria.

Approved Verifiers under the
Climate Bonds Standard10

Assurance, audit or postissuance SPO

Assurance of actual allocation of proceeds to eligible green projects.

Audit firms, ESG service
providers

Post-issuance
verification of the Climate
Bonds Certification

Third party verification confirms the allocation of proceeds is to eligible green
projects and the types of green projects conforms to requirements of the
Climate Bonds Standard.

Approved Verifiers under the
Climate Bonds Standard11

Impact report

Assessment that seeks to quantify the environmental impact of financed
projects/assets (often not considered an external review per se as theassessment is done by the provider itself, and does not cover UoP information).

ESG service providers,scientific experts, otherspecialised consultants

Post-issuance review

Disclosure
Disclosure remains a key factor in establishing whether a bond is deemed
to be eligible for the GBD. The assessment is typically based on publicly
available information. Occasionally, Climate Bonds may obtain private
information to determine alignment.
For post-issuance reporting, Climate Bonds relies solely on publicly
available information. Information made available on the Climate Bonds
website about Certified instruments12 is considered publicly available even if
the issuer has not made it publicly available on their website.

2.3 Classification of bonds
Bonds that meet the requirements outlined in Climate Bonds screening
methodology qualify for inclusion in the datasets and are classified as aligned.
Labelled bonds for which there is not enough information to determine
eligibility for database inclusion are classified as pending until sufficient
disclosure is available to decide.
Bonds failing to meet the requirements of Climate Bonds screening
methodology are classified as non-aligned and are excluded from the dataset.
The Climate Bonds GBD contains the bonds that have passed the screening,
and further lists of labelled debt as detailed below.

DatasetSub-dataset and definition

Availability

Green Bond
DatasetAligned list
A list of labelled bonds and other debt instruments, which allocate 100% of
net proceeds to green assets, with a minimum of 90% directed specifically toeligible green assets, projects, activities and expenditures, in alignment withthe criteria outlined in this methodology.

Basic information is available to all Climate Bonds
Partners through the Climate Bonds Partners Portal.

Non-aligned list
A list of labelled green bonds and similar debt instruments that fail to meetthe criteria for inclusion in the Climate Bonds GBD.
Such bonds may meet local green bond rules, but they do not demonstrate
the level of ambition required by Climate Bonds.13

Available to Premium and Advanced Climate Bonds
Partners only, under a data licensing arrangement.

Pending list
A list of labelled bonds and similar instruments for which there isinsufficient information to determine eligibility, and where they are kept
temporarily. Upon further investigation, the bond may be categorised asaligned or non-aligned, i.e., excluded.

Available to Premium and Advanced Climate Bonds
Partners only, under a data licensing arrangement.

Comprehensive information is available to Premiumand Advanced Climate Bonds Partners only, under adata licensing arrangement.

10. https://www.climatebonds.net/certification/approved-verifiers
11. https://www.climatebonds.net/certification/approved-verifiers
12. Climate Bonds Initiative, n.d. Certified Climate Bonds Database. https://www.climatebonds.net/certification/certified-bonds
13. For instance, China’s green bond catalogue (2015 version) used to allow the so-called clean coal projects.

Green Bond Dataset Methodology Climate Bonds Initiative7

3. Pending deals and resolution process
In some cases, the information available on the deal’s UoP is insufficient todetermine alignment with the screening criteria of this methodology. This isoften the case for private deals but may also occur when documentation is
not made available in English, or only shared with bondholders and lenders
and not in the public domain.
Such bonds are marked as pending and further work is undertaken to
obtain clarity. This investigation process involves contacting the issuer,
underwriter, rating agency, or the second party opinion provider (ifapplicable) within 30 days of the bond being identified. Climate Bonds will
also continue monitoring information disclosed to the market.

If no further information is made available or the obtained information
does not confirm alignment within 30 days after the bond is identified, or
the database requirements are still not met, the bond is added to the nonaligned list or other Climate Bonds databases as appropriate.
In some cases, issuances will be in pending for longer periods while Climate
Bonds go through a research and consultation process to ascertain moredetails about the UoP. In these cases, active investigations are taking place
based on communications that have been received within the 30-day
response period.

4. Exclusions
The Social Bond label includes bonds
where proceeds have a focus ondelivering positive social outcomes.
The labels used to describe the bondmay range from ‘Pandemic’ to ‘Genderinclusion’ but all are covered within theSocial label.

If a bond does not pass the screening process outlined above, it will not be
included in the dataset.
The list of excluded deals, together with the reason for exclusion, is available
to partners but is not made public.
Common exclusions are if >10% of proceeds are (expected to be) used for:• social projects;14• general corporate purposes, working capital, operating and training
expenses, etc.;• early-stage R&D without sufficient disclosure, and other non-aligned
expenses or assets.

The Sustainability Bond label covers
bonds with proceeds directed to a
mix of both green and social projects.
Labels include Sustainable Development
Goals, Sustainable and Responsible
Investments etc,

The most common sector exclusions are fossil fuel power, including fossil
gas, and any process, product, asset or improvement which locks in theuse or extends the life of fossil fuels. Other significant exclusions come frominsufficiently ambitious building standards and/or retrofits.

The Green bond label describes
bonds with proceeds dedicated toenvironmental and climate outcomes.
Labels may include ‘climate, green, etc’

Notably, excluded sustainability, SDG, ESG, and similar bonds may be eligible
for inclusion in the Climate Bonds Social and Sustainability (S&S) Dataset.15

Sustainability-linked bonds (SLBs)
are general-purpose debt instruments
where the financial and/or structuralcharacteristics vary depending onwhether the issuer achieves predefinedsustainability objectives.

5. Reclassification of a bondClimate Bonds reserves the right to retroactively rescreen non-aligned deals
following a methodology change, but this is not a routine or automatic
procedure for every modification. If a green bond is included but the issuer
cannot fulfil the criteria later or the proceeds are eventually applied to nongreen assets, it may be removed from the Climate Bonds GBD. Conversely,
an excluded bond may be reclassified if satisfactory information is provided
or obtained later which confirms sector alignment.

Changes in labelling approaches
A shift from a non-aligned status to an aligned status could happen if
Climate Bonds modifies its methodology to include a wider range ofacceptable approaches to labelling.

Changes in the definition of alignment
Non-aligned deals may be retroactively reclassified as aligned to reflect
the evolution of scientific thinking and internal guidance on sectors andasset categories. Changes of this type may occur after an update to the
Climate Bonds Taxonomy or the publication of new Sector Criteria used
for Certification. On the other hand, aligned deals will not be excluded as
Climate Bonds tightens the screening criteria outlined in this methodology.

Post-issuance exclusions
Bonds may be re-assessed and excluded from the aligned list of the Climate
Bonds GBD based on new information. Post-issuance reporting on theactual allocation of proceeds can lead to exclusion from the Climate Bonds
GBD if the funding proves to be allocated to assets that are not aligned.
Climate Bonds has undertaken three studies into post-issuance reporting (in2017, 2019 and 2021) and continues to monitor the market.

14. Note that deals with social UoP are included in the S&S Dataset, which has a separate methodology.
15. Climate Bonds Initiative, 2022. Social & Sustainability Bond Database Methodology. https://www.
climatebonds.net/market/social-sustainability-bond-database-methodology

Green Bond Dataset Methodology Climate Bonds Initiative

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The Climate Bonds Standard and Certification Scheme
The Climate Bonds Standard and Certification Scheme16 is avoluntary labelling scheme for investments and entities that
address the challenge of climate change, and are consistent
with the goal of limiting global temperature rise to 1.5°C above
pre-industrial levels set in the Paris Agreement. The scheme
is used globally by bond issuers, governments, investors and the financial
markets to prioritise investments which meet the highest standards forclimate integrity.
Transparently developed scientific criteria17 underpin the Scheme andindependent external assessment is provided by the network of Climate
Bonds Approved Verifiers.18 An international independent Climate Bonds
Standard Board, comprised of institutional investor representatives andreporting to the Trustees of the Climate Bonds Initiative, provides oversightand a strong governance framework for the Scheme.

The Certification label applies to UoP orgeneral purpose debt instruments (suchas SLBs), as well as to projects and assets
and to entities. Certification19 under thisStandard confirms that debt instruments,
assets, or entities meet the requirementsof the Climate Bonds Standard andsector eligibility criteria applicable at thetime of certification.

CLIMATE BO
STANDARD NDS

Globally recognis
Certification of ed, Paris-aligned
De
Entities and As bt Instruments,setscience-based s using robust,
methodologies

Updated Februar
y 2024
Version 4.1

Comparison of the requirements for Certification vs Green Bond Dataset inclusion
Requirement

Certification scheme

Green Bond Dataset inclusion

Governing document

Climate Bonds Standard V4.1

Climate Bonds GBD Methodology

Included in

Certified Bonds Database, available on Climate
Bonds website (except for confidential deals)

Climate Bonds GBD, available to Climate
Bonds Partners

Taxonomy alignment

Climate Bonds Taxonomy

Climate Bonds Taxonomy or EU Taxonomy where
Climate Bonds has not yet developed relevant Sector
Criteria

Sector criteria alignment

Climate Bonds Sector Criteria

Climate Bonds screening criteria for inclusionin the GBD

Criteria development
methodology

New Sector Criteria are developed throughexpert Technical Working Groups (TWG) andIndustry Working Groups (IWG) and a public
consultation process. The Climate Bonds Standards
Board oversees the Standard and Criteria
development process

Screening criteria are developed internally by Climate
Bonds by reference to the Climate Bonds Taxonomy,
the Climate Bonds Sector Criteria, the EU Taxonomy’s
SCC and other market standards

Bond selection process

Pre-issuance: issuer submits an application under
the Climate Bonds Standard

Post-issuance: Climate Bonds screens all debt
instruments self-labelled by the issuer as green or
under a similar nomenclature, based on publicly
available information

Eligible instrument types

All debt instruments including short-term
instruments such as bank deposits

All debt instruments excluding short-term instruments

Requirement for a green bondframework by the issuer

Mandatory

Not required

Requirement for external
review/verification

Pre- and post-issuance verification by a Climate
Bonds Approved Verifier is mandatory

Not required but recommended. Certification/SPO
details are available in the GBD

Annual reporting by issuer

Mandatory for the term of the instrument

Not required

Impact reporting by issuer

Recommended, often combined withannual reporting

Recommended

Public disclosure

Recommended but not required for
confidential deals

Required

16. Climate Bonds Initiative, n.d. Certification under the Climate Bonds Standard.
https://www.climatebonds.net/certification
17. Climate Bonds Initiative, n.d. Standard: Sector Criteria.
https://www.climatebonds.net/standard/sector-criteria
18. Climate Bonds Initiative, n.d. Certification: Become and Approved Verifier.
https://www.climatebonds.net/certification/approved-verifier
19. Climate Bonds Initiative, n.d. Climate Bonds Certification.
https://www.climatebonds.net/certification/get-certified

Green Bond Dataset Methodology Climate Bonds Initiative

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The Climate Bonds Taxonomy
The Climate Bonds Taxonomy is a green classification system, a rulebook of
the investable universe to support a low-carbon economy. It provides highlevel guidance for the identification of assets, activities and projects needed
to deliver a low-carbon economy. It is consistent with the goal of the Paris
Agreement to keep global temperatures below the 2-degree threshold andideally 1.5 degrees.

First released in 2013, the Climate Bonds Taxonomy is regularly updated
based on the emergence of new technologies, the latest climate scienceand market development. Embedded within the Taxonomy are the Climate
Bonds Standard Sector Criteria, which provide the user of the Taxonomy
with unambiguous, numeric and binary thresholds to select assets andactivities that can underlie any green financial instrument.

The Taxonomy has been developed based on the latest climate science andit includes research from the Intergovernmental Panel on Climate Change(IPCC) and the International Energy Agency (IEA). It has benefited from the
input of hundreds of technical experts from around the world and it canbe used by any entity seeking to identify which assets and activities arecompatible with a decarbonising trajectory towards zero in 2050.

Guided by the Climate Science Advisory Panel and overseen by the Climate
Science Standards Board, the aim of The Taxonomy is to encouragecommon and interoperable definitions across global markets, in a way that
supports the growth of a cohesive green bond market.
Contact email for Taxonomy Team: taxonomy@climatebonds.net

Climate Bonds Initiative Market Intelligence Data Products Team
MIDP.team@climatebonds.net
For data partnership enquiry please contact:
partnerships@climatebonds.net
Prepared by Climate Bonds Initiative.
Design: Godfrey Design© Published by Climate Bonds Initiative, April 2024
www.climatebonds.net

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 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 content on external websites. The Climate Bonds Initiative is not endorsing, recommending or advising on the financial merits or otherwise of any debt instrument
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. Certification under the Climate Bond Standard only reflects the climate attributes of the use of proceeds of a designated debt instrument. It does not reflect the credit worthiness of thedesignated debt instrument, nor its compliance with national or international laws. 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 or in part on any information contained
within this, or any other Climate Bonds Initiative public communication.

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