Hydrogen Criteria
The Hydrogen Eligibility Criteria of
the Climate Bonds Standard &Certification Scheme
Published for certification
NOTE:

These Criteria can be used to certify Use-of-Proceeds Instruments, SustainabilityLinked Debt Instruments, Assets and Entities per the Climate Bonds Standard v4.0

Revision

Date

Summary of Changes

Rev. 2.0

November 2023

Issued for CertificationRev. 1.1

August 2023

Issued for Public Consultation
Hydrogen production and delivery criteria

Rev. 1.0

November 2022

Issued for Certification
Hydrogen production criteria

1Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Acknowledgements
Climate Bonds gratefully acknowledges the Technical (TWG) and Industry Working Group (IWG) members who supported thedevelopment of these Criteria. Members are listed inAppendix A.
Special thanks are given to Emre Gençer, the lead specialist and Marian Rodriguez for coordinating the development of the Criteria
through the Technical Working Group.
The Industry Working Group provided a usability focused consultation and feedback on the criteria, but it does not automatically reflect
endorsement of the criteria by all members.

Hydrogen Criteria- Climate Bonds Initiative

Page | 2

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Definitions
Additionality principle: Ensuring that electrolytic hydrogen is produced from additional renewable electricity.
Applicant: The term or name for any potential bond issuer, or non-financial corporate entity that might seek certification under the
Steel Criteria.
Carbon Capture and Storage (CCS): describes a suite of technologies that capture waste CO2, usually from large point sources,
transport it to a storage site, and deposit it where it will not enter the atmosphere. Stored CO2 is injected into anunderground geological formation; this could be a depleted oil and gas reservoir or other suitable geological formation.
Carbon Capture, Utilisation and storage (CCUS): describes a suite of technologies that capture waste CO2, usually from large point
sources, to then use it in other processes, or to make products.
Certified Entity: The entity or part thereof which is being certified under the Climate Bonds Standard. Currently, Entity Certification islimited to non-financial Entities or segregated segments thereof, for which the Climate Bonds Initiative has Climate Bonds
Standard Sector Criteria for Entity Certification.
Climate Bonds Initiative (Climate Bonds): An investor focused not-for-profit organisation, promoting large-scale investments that will
deliver a global low carbon and climate resilient economy. Climate Bonds seeks to develop mechanisms to better align theinterests of investors, industry and government to catalyse investments at a speed and scale sufficient to avoid dangerous climatechange.
Climate Bonds Standard (CBS): A screening tool for investors and governments that allows them to identify green bonds the proceeds ofwhich are being used to deliver climate change solutions. This may be through climate mitigation impact and/or climate
adaptation or resilience. The CBS is made up of two parts: the parent standard (CBS v4.0) and a suite of sector specific eligibility
Criteria. The parent standard covers the certification process and pre- and post-issuance requirements for all certified bonds,
regardless of the nature of the capital projects. The Sector Criteria detail specific requirements for assets identified as fallingunder that specific sector. The latest version of the CBS is published on the Climate Bonds website.
Climate Bonds Standard Board (CBSB): A board of independent members that collectively represents $34 trillion of assets undermanagement. The CBSB is responsible for approving (i) Revisions to the CBS, including the adoption of additional sector Criteria,(ii) Approved verifiers, and (iii) Applications for Certification of a bond under the CBS. The CBSB is constituted, appointed, andsupported in line with the governance arrangements and processes as published on the Climate Bonds website.
Climate Bond Certification: allows the issuer to use the Climate Bond Certification Mark in relation to that bond. Climate Bond Certification
is provided once the independent CBSB is satisfied the bond conforms with the CBS.
Critical interdependencies: The asset or activity’s boundaries and interdependencies with surrounding infrastructure systems.
Interdependencies are specific to local context but are often connected to wider systems through complex relationships that
depend on factors ‘outside the asset fence’ that could cause cascading failures or contribute to collateral system benefits.

Geographic correlation: Renewable electricity generation must be geographically correlated to the hydrogen production site, whichmeans to be located in the same electricity market price area.
Green Bond: A green bond is a bond of which the proceeds are allocated to environmental projects or expenditures. The term generally
refers to bonds that have been marketed as green. In theory, green bonds proceeds could be used for a wide variety ofenvironmental projects or expenditures, but in practice they have mostly been earmarked for climate change projects.
Hydrogen production assets and projects: Assets and projects relating to the acquisition, installation, management and/or operation ofequipment and infrastructure for hydrogen production.
Hydrogen delivery projects: All the operations and activities after hydrogen production and before end-use. It includes conditioning,transportation, conversion, reconversion, and storage.
Industry Working Group (IWG): A group of key organisations that are potential Applicant, verifiers and investors convened by Climate
Bonds. The IWG provides feedback on the draft sector Criteria developed by the TWG before they are released for public
consultation.
Investment Period: The interval between the bond’s issuance and its maturity date. Otherwise known as the bond tenor.
Hydrogen Criteria- Climate Bonds Initiative

Page | 3

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Parent Company/Group: A company is considered a parent company of another entity (a subsidiary) if it exercises control over thesubsidiary. The terms “control” and “subsidiary” have the meaning assigned to them under International Financial Reporting Standard
10 (IFRS 10). A Parent Group consists of the Parent Company and all the companies that the Parent Company exercises control over.
Where the Applicant does not belong to a group of companies, the term Parent Company applies to the Applicant.
Sustainability-Linked Debt (SLD): Any debt instrument for which the financial and structural characteristics can vary depending on whether
the issuer achieves predefined Sustainability/ ESG objectives. Such objectives are measured through predefined KPIs and assessedagainst predefined performance targets. Proceeds of SLD are intended to be used for general purposes.
Technical Working Group (TWG): A group of key experts from academia, international agencies, industry and NGOs convened by Climate
Bonds. The TWG develops the Sector Criteria - detailed technical criteria for the eligibility of projects and assets as well as
guidance on the tracking of eligibility status during the term of the bond. Their draft recommendations are refined throughengagement with finance industry experts in convened Industry Working Groups (see below) and through public consultation.
Final approval of Sector Criteria is given by the CBSB.
Temporal correlation: Ensuring that renewable energy generation and hydrogen production coincide temporally.

Transition Plans: The delivery strategy and governance implemented / to be implemented to achieve the decarbonisation targets
represented by the Climate Mitigation Performance Targets of the Applicant.
Use of Proceeds Debt Instruments (UoP Instruments): The proceeds of UoP instruments are allocated to specific projects or
purposes. For this Standard, UoP Instruments are for environmentally beneficial projects, assets, activities, or expenditures.

List of acronyms
A&R

Adaptation and Resilience

IEA

International Energy Agency

CCS

Carbon Capture and Storage

IPCC

Intergovernmental Panel on Climate Change

CCU

Carbon Capture and Utilisation

IRENA

International Renewable Energy Agency

CO2eq CO2 equivalents

IWG

Industrial Working Group

EGS

Environmental, Social, and GovernanceNGO

Non-governmental organisations

GHG

Greenhouse Gas

SBTi

Science-Based Targets initiative

GWP

Global Warming Potential

TWG

Technical Working Group

Hydrogen Criteria- Climate Bonds Initiative

Page | 4

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Table of Contents
Definitions

3

List of acronyms

4

1

7

2

3

Introduction
1.1

The Climate Bonds Standard

7

1.2

Environmental scope

7

1.3

What can be certified

7

The Scope of these Criteria

8

2.1 Hydrogen supply chain in scope

8

2.2 Alignment with other sector criteria

9

Hydrogen Production Criteria
3.1

Criteria for Decarbonisation Measures within Facilities Producing Hydrogen

1010

3.1.1 Mitigation criteria for hydrogen production equipment, decarbonisation measures and projects within facilities
producing hydrogen10
3.1.2 Adaptation and resilience criteria for hydrogen production equipment, decarbonisation measures and projects within
facilities producing hydrogen
15
3.2

4

17

3.2.1

Mitigation criteria for facilities producing hydrogen

17

3.2.2

Adaptation and Resilience criteria for facilities producing hydrogen

22

Hydrogen delivery criteria
4.1

Mitigation criteria for hydrogen delivery projects

29
29

4.1.1

Hydrogen conditioning

29

4.1.2

Hydrogen transportation

29

4.1.3

Hydrogen storage

30

4.2
5

Criteria for facilities producing hydrogen

Adaptation and Resilience Criteria for hydrogen delivery projects

Criteria for entities and Sustainability Linked Debt (SLD)

32
35

5.1

Sector specific criteria for eligible non-financial corporates

35

5.2

Criteria for Sustainability Linked Debt (SLDs)

36

Hydrogen Criteria- Climate Bonds Initiative

Page | 5

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

List of Figures
Figure 1. Simplified Representation of the activities in scope per module and the GHG accounting system boundaries

8

List of Tables
Table 1: Assets or projects partially covered by other Climate Bonds sector criteria.
Table 2: Mitigation criteria
Table 3 Adaptation and resilience checklist for decarbonisation measures in facilities producing hydrogen
Table 4. Hydrogen carbon intensity thresholds towards net zero by 2050
Table 5. Criteria for certifying an entire facility depending on the production process.
Table 6: Adaptation and resilience criteria for hydrogen production facilities
Table 7: Mitigation criteria for conditioning
Table 8: Mitigation criteria for transportation
Table 9: Mitigation criteria for storage
Table 10: Adaptation and resilience checklist for hydrogen delivery projects
Table 11: Entities Tiered Certifications
Table 12: Entities Tiered Certifications
Table 13: SLD Tiered Certifications

9
11
15
17
19
22
29
29
30
33
35
36
36

List of Boxes, Notes and Examples
Box 1: Methodological notes for GHG accounting
Box 2: Methodological notes for meeting the emissions intensity threshold
Box 3: Notes for demonstrating additionality, temporal and geographic correlation.

18
20
21

List of Appendices
Appendix A: TWG and IWG members

Hydrogen Criteria- Climate Bonds Initiative

37

Page | 6

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

1 Introduction
1.1 The Climate Bonds Standard
Investor demand for climate bonds is strong and is expected to increase in line with the delivery of quality products into the market.
However, investor concerns about the credibility of green labelling are also growing. Standards, assurance & Certification will beessential to improve confidence and transparency, which in turn will enable further strong growth in the market.
Today, the Climate Bonds Standard and Certification Scheme is an easy-to-use screening tool that provides a clear signal to investors
and intermediaries on the climate integrity of Certified Climate Bonds. Proposals are currently under consultation to also expand
certification to entities with climate integrity.
A key part of the Standard is a suite of sector-specific eligibility Criteria. Each sector-specific Criteria sets climate change benchmarks
for that sector that are used to screen assets and capital projects, and increasingly entities, so that only those that have climate
integrity, either through their contribution to climate mitigation, and/or to adaptation and resilience to climate change, will becertified.
These sector-specific Criteria are determined through a multi-stakeholder engagement process, including TWG and IWG, convened
and managed by Climate Bonds, and are subject to public consultation. Finally, they are reviewed and approved by the Climate
Bonds Standard Board (CBSB).
The second key part of the Climate Bonds Standard (CBS) is the overarching CBS available at Climate Bonds Standard v4.0. This
documents the common management of proceeds and reporting requirements that all Certified Climate Bonds must meet, in
addition to meeting the sector specific Criteria.

1.2 Environmental scope
Currently, certification requirements address:•••

Climate change mitigation; andClimate adaptation and resilience; andOther environmental impacts

1.3 What can be certified
Subject to meeting the eligibility criteria in the following sectors, the following can be certified under these criteria:•••

Use-of-Proceed (UoP)1 bonds financing decarbonisation measures within facilities producing hydrogen (e.g., retrofits) - ormanufacturing of equipment for hydrogen production and use see Section 3.1
Use-of-Proceed (UoP) bonds financing hydrogen production facilities (i.e., assets) - see Section 3.2
Use-of-Proceed (UoP) bonds financing hydrogen delivery projects (i.e., assets and activities relating to conversion,transportation, and storage of hydrogen) - see Section 4

The following can be certified following the update of the Overarching Climate Bonds Standard v4.0:••

Assets not linked to any specific financing instrument (hydrogen production facilities) - see Section 3.2
Entities (hydrogen production companies, hydrogen equipment companies, gas network operators, hydrogentransportation companies, hydrogen storage companies) and Sustainability Linked Bonds (SLBs) issued by those entities see Section 5

1

Use-of-Proceed (UoP) is used as shorthand throughout this document for a variety of targeted finance instruments, including green loans, repos, and assetbacked securities. Annex 1 of the Standard v3.0 details the full list of instruments that can be certified.
Hydrogen Criteria- Climate Bonds Initiative

Page | 7

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

To demonstrate compliance with the following Criteria, in accordance with the Climate Bonds Standard, it is the applicant’s
responsibility to provide the information to prove compliance with each component of these Criteria. Verifiers must include thisinformation in the scope of verification.

2 The Scope of these Criteria
Applicants of certification must comply with the criteria related to the modules of the value chain they are involved in. However, acompatible emissions intensity target is included, allowing different production and delivery pathways combinations to meet therequired total emissions intensity for a project to be certified.

2.1 Hydrogen supply chain in scope
The Hydrogen Criteria apply to eligible assets, projects and entities relating to the production, conditioning, conversion,transportation, and storage of hydrogen. It covers activities across the hydrogen value chain, except for end-uses, which are part ofeach end-use sector criteria.2 The diagram below in figure 1 is a simplified representation of the activities that can be certified per
module (within the orange dotted line), and the system boundaries for the GHG accounting3 (within the red dotted line). The
activities within the purple dotted line are partially covered by other sector´s criteria.
Total GHG emissions must include emissions from feedstock acquisition, hydrogen production, conditioning, transportation,
conversion, and reconversion modules.

Figure 1. Simplified Representation of the activities in scope per module and the GHG accounting system boundaries 42 For example, steel production, ammonia production, power generation.
3

The GHG accounting must be presented by the hydrogen producer.

4 Additional details in Box 2

Hydrogen Criteria- Climate Bonds Initiative

Page | 8

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

2.2 Alignment with other sector criteria
In respect of UoP bond certifications, where the proceeds will be allocated to multiple sectors, proof of compliance with multiple
sector criteria may be required across the portfolio. For example, if the UoP bond is financing both hydrogen activities and steel
activities, then the applicant would have to prove compliance with the Hydrogen Criteria in respect of the former and the Steel
Criteria in respect of the latter.
In respect of SLB and entity certifications, where the SLB or entity Performance Targets span multiple activities within the entity, allthose activities will need to be assessed against the appropriate sector criteria and an overall ‘pass threshold’ reached. See the
Climate Bonds Standard v4.0 Part D Section 2.3 for more information on this.
In some cases, it may not immediately be clear whether activities, facilities or projects might fall under these criteria or other sector
criteria. The possible overlaps, and appropriate sector criteria to be used, are clarified in Table 1

Table 1: Assets or projects partially covered by other Climate Bonds sector criteria.
Potential Use-of-Proceeds

Sector Criteria

Renewable energy generation including Solar, Wind, Marine
Renewable, Hydropower and Geothermal energy

Relevant corresponding energy criteria.

Transporting hydrogen by truck

Low-carbon transport criteria

Transporting hydrogen by ship

Shipping criteria

Use of hydrogen for steel, cement, ammonia, and methanol
production

Steel, Cement, Basic Chemicals criteria.

The following sections of this document contain the criteria per module:••

Hydrogen production, Section 3
Hydrogen delivery, Section 4o Hydrogen conditioning, Section 4.1.1
o Hydrogen transportation, Section 4.1.2
o Hydrogen storage, Section 4.1.3

Hydrogen Criteria- Climate Bonds Initiative

Page | 9

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

3 Hydrogen Production Criteria
3.1 Criteria for Decarbonisation Measures within Facilities Producing Hydrogen
These criteria cover capital investments (decarbonisation measures and specific projects) within production facilities and the
manufacture of equipment for low-carbon hydrogen production. It differs from an investment that would finance the cost of awhole facility in that it is focused on measures or specific areas of improvement within a production facility. Decarbonisation
measures and specific projects within facilities producing hydrogen must meet:••

The mitigation criteria explained in section 3.1.1
The adaptation and resilience criteria explained in section 3.1.2

For new projects that have not started operations when applying for certification, applicants must present a plan and quantitative
report with intended emissions reduction potential, in case of CCS or CCU capture rates, and yearly climate performance plan forthe bond´s duration. Once the project is certified and starts operations, the information presented is evaluated on a yearly basis
over the term of the bond. If the project does not meet the criteria, the certification is revoked.

3.1.1 Mitigation criteria for hydrogen production equipment, decarbonisation measures and projects within
facilities producing hydrogen
Table 2 lists decarbonisation measures, retrofitting projects, and activities eligible for certification due to their climate mitigation
potential, and any associated eligibility criteria specific to those investments. These are classified in three categories:
•

•
•
•

Various, which includes diverse activities and decarbonisation measureso Manufacture of electrolysers and membranes to produce hydrogeno Acquisition of electrolysers and membranes to produce hydrogeno Carbon capture and storageo Carbon capture and utilisationo Electrification of processes
Feedstock substitution, using biogas
Electricity source for electrolytic production, using renewable energy
Research and development projects

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 10

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Table 2: Mitigation criteria
for eligible decarbonisation measures, retrofitting activities,
and projects within facilities producing hydrogen

Area

Activity

Mitigation criteria

VariousEquipment andcomponents to
produce lowcarbonhydrogen.

Manufacture ofelectrolysers andmembranes forelectrolysers.

Automatically eligible.

Acquisition ofelectrolysers andmembranes forelectrolysers.

Automatically eligible.

Carbon Captureand Storage

Installation /acquisition of
infrastructure related
to CO2 capture ofemissions fromhydrogen production.

•

The minimum capture rate from process and combustion emission streamsof 90%.5•

A quantitative performance report of the CCS operations, including thefollowing information6:oIntended capture rate capacity, maximum capture rate capacity,
intended annual capture of CO2, transport of CO2, and storage of CO2.7•

Demonstrated MRV (monitoring, reporting and verification), and mitigation
measures for methane leaks on site and upstream.8•

Evidence9 that demonstrates the CO2 will be suitably transported and storedin line with the criteria below:

Transport10
1.

The CO2 transported from the installation where it is captured to theinjection point does not lead to CO2 leakages above 0.5 % of the mass of CO2transported.

2.

Appropriate leakage detection systems are installed, and a monitoring plan isin place, with the report verified by an independent third party.

5 A minimum capture rate must be demonstrated only for specific investments on CCS or CCU infrastructure. Entire facilities certification does not need to meetthis requirement if the facility meet the total carbon intensity benchmark in section 3.2.1
6 CCS performance report must be verified by an external verifier.
7 Zhang et al, 2021. https://pubs.acs.org/doi/pdf/10.1021/acs.estlett.2c00296
8 Additional guidance can be found in the report Best Practice Guidance for Effective Methane Management in the Oil and Gas Sector. Monitoring, Reporting andVerification (MRV) and Mitigation. United Nations Economic Commission for Europe. 2019https://unece.org/fileadmin/DAM/energy/images/CMM/CMM_CE/Best_Practice_Guidance_for_Effective_Methane_Management_in_the_Oil_and_Gas_Sector__Monitoring__Reporting_and_Verification__MRV__and_Mitigation-_FINAL__with_covers_.pdf
9 Either directly from the issuer or through contracts or agreements with a third party
10

From the technical screening criteria for qualifying as contributing substantially to climate change mitigation for “Transport of CO2” in Annex 1 of
the Commission Delegated Regulation (EU) 2021/2139
Hydrogen Criteria- Climate Bonds Initiative

P a g e | 11

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Area

Activity

Mitigation criteria
Storage

11

1.

Characterisation and assessment of the potential storage complex andsurrounding area, or exploration12 is carried out to establish whether thegeological formation is suitable for use as a CO2 storage site.

2.

For operation of underground geological CO2 storage sites, including closure
and post-closure obligations:a)Appropriate leakage detection systems are implemented to prevent
release during operation;b) A monitoring plan of the injection facilities, the storage complex, and,
where appropriate, the surrounding environment is in place, with theregular reports checked by the competent national authority.
3.

For the exploration and operation of storage sites, the activity complies withISO 27914:201722513 for geological storage of CO2.
Furthermore, the use of the following certification schemes is encouraged:
U.S. EPA Class VI well certification, which includes reservoir
characterization14.
The DNV GL certification framework to verify compliance with the ISO
27914:2017 Carbon dioxide capture, transportation, and geological storage Geological storage.

Carbon Captureand Utilisation

Installation /acquisition of
infrastructure related
to capture,transportation, andutilisation of CO2
emissions from thehydrogen production.

•

The minimum capture rate from process and energy emission streams
should be 90%.15•

A quantitative performance report of the CCS operations, including thefollowing information16:oIntended capture rate capacity, maximum capture rate capacity,
intended annual capture of CO2, transport of CO2, and utilisation of CO2.

•

Applicant must demonstrate MRV (monitoring, reporting and verification),and mitigation measures for methane leaks on site and upstream17.

•

There is evidence18 that demonstrates the CO2 will be suitably transported inline with the criteria below:

Transport19

11

From the technical screening criteria for qualifying as contributing substantially to climate change mitigation for “Underground permanent geological storageof CO2” in Annex 1 of the Commission Delegated Regulation (EU) 2021/2139
12 ‘exploration’ means the assessment of potential storage complexes for the purposes of geologically storing CO2 by means of activities intruding into thesubsurface such as drilling to obtain geological information about strata in the potential storage complex and, as appropriate, carrying out injection tests inorder to characterise the storage site
13 ISO Standard 27914:2017, Carbon dioxide capture, transportation and geological storage - Geological storage (version of [adoption date]:www.iso.org/standard/64148.html).
14 www.epa.gov/uic/class-vi-wells-used-geologic-sequestration-co2
15 A minimum capture rate must be demonstrated only for investments on CCS or CCU infrastructure. Entire facilities certification does not need to meet thisrequirement if the facility meet the carbon intensity benchmark in table 4.
16 CCS performance report must be verified by an independent party
17 www.dnv.com/news/dnv-gl-launches-certification-framework-and-recommended-practice-for-carbon-capture-and-storage-ccs--108096 Monitoringalternatives include satellite-based or drone-based measurement. Additional guidance can be found in the report Best Practice Guidance for Effective MethaneManagement in the Oil and Gas Sector. Monitoring, Reporting and Verification (MRV) and Mitigation. United Nations Economic Commission for Europe. 2019https://unece.org/fileadmin/DAM/energy/images/CMM/CMM_CE/Best_Practice_Guidance_for_Effective_Methane_Management_in_the_Oil_and_Gas_Sector__Monitoring__Reporting_and_Verification__MRV__and_Mitigation-_FINAL__with_covers_.pdf
18 Either directly from the issuer or through contracts or agreements with a third party
19

From the technical screening criteria for qualifying as contributing substantially to climate change mitigation for “Transport of CO2” in Annex 1 of
the Commission Delegated Regulation (EU) 2021/2139
Hydrogen Criteria- Climate Bonds Initiative

P a g e | 12

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Area

Activity

Mitigation criteria•

The CO2 transported from the installation where it is captured to theinjection point does not lead to CO2 leakages above 0.5 % of the mass of CO 2transported.

•

Appropriate leak detection systems are applied and a monitoring plan is inplace, with the report verified by an independent third party.

Utilisation

Electrification ofprocesses andoperations.

•

CO2 must be used for the manufacture of durable products (e.g. polymers,
construction materials stored in buildings, or recyclable products.

•

CO2 is not used for products that release the CO2 immediately when the
products are used (such as in urea, carbonated beverages, or fuels)•

CO2 is not used for enhanced oil recovery, and the production of other formsof fossil energy sources.

Revamps,
modifications, andother infrastructurenecessary for
implementing
methane pyrolysis.

•

Demonstrated MRV (monitoring, reporting and verification), and mitigation
measures for methane leakages on site and upstream 20.

•

Methane leakages below 0.2%.21

Revamps,
modifications, andother infrastructurenecessary forelectrification of
specific processes andoperations.

Automatically eligible

Feedstock substitution
Biogas (frombiomass, landfill
sites or manure)
as a feedstock

Infrastructure to
produce hydrogenusing biogas.
Refurbishment andretrofitting of facilities
to use biogas.

•

When using biomass, the raw material used is derived from existing supply
chains and does not require dedicated production out of arable land. Only
waste and residues are eligible. Wood and other dedicated crops are noteligible22.

•

Demonstrated MRV (monitoring, reporting and verification), and mitigation
measures for methane leakages on site and upstream 23.

•

Methane leakages below 0.2%.24

Electricity source
Renewable(Wind, solar,hydro,
geothermal)energyRefurbishment andretrofitting of facilities
to use renewableenergy sources.

Automatically eligible

20 Monitoring alternatives include satellite-based or drone-based measurement. Additional guidance can be found in the report

Best_Practice_Guidance_for_Effective_Methane_Management_in_the_Oil_and_Gas_Sector__
Monitoring__Reporting_and_Verification__MRV__and_Mitigation-_FINAL__with_covers_.pdf (unece.org)
21

Oil and Gas Climate Initiative (OGCI) ’s 0.2% target for methane intensity is frequently used as an industry standard. www.ogci.com/methane-emissions

22 Climate Bonds Bioenergy Criteria. Section 3.2.2. Requirement 2: Reducing the risk of indirect land use impact www.climatebonds.net/standard/bioenergy
23 Monitoring alternatives include satellite-based or drone-based measurement. Additional guidance can be found in the report

Best_Practice_Guidance_for_Effective_Methane_Management_in_the_Oil_and_Gas_Sector__
Monitoring__Reporting_and_Verification__MRV__and_Mitigation-_FINAL__with_covers_.pdf (unece.org)
24 Oil and Gas Climate Initiative (OGCI) ’s 0.2% target for methane intensity is frequently used as an industry standard. www.ogci.com/methane-emissions

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 13

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Area

Activity

Mitigation criteria

R&D projects25
Research anddevelopment
projects for lowcarbon hydrogenproduction

Research, appliedresearch andexperimental
development ofsolutions, processes,
technologies, businessmodels and otherproducts dedicated tothe substantial
reduction, avoidanceor removal of GHG
emissions fromhydrogen production

•
•

•

•

TRL1 to TRL5: Early-stage R&D may be considered eligible if aiming to bring
the solution, product or technology to TRL6.
TRL6 : Projects require that the technology is fine-tuned to a variety ofoperating conditions, the process is reliable and the performances match the
expectations, interoperability with other connected technologies isdemonstrated, the manufacturing approach is clearly defined and that allenvironmental, regulatory and socio-economic issues are addressed. The
project brings the solution, process, technology, business model or otherproduct through TRL 1-5;
TRL6 or 7: Where the researched, developed or innovated technology,
product or other solution is at TRL 6 or 7, life- cycle GHG emissions areevaluated in simplified form by the entity carrying out the research. The
entity demonstrates one of the following, where applicable: (a) a patent notolder than 10 years associated with the technology, product or othersolution, where information on its GHG emission reduction potential has
been provided; (b) a permit obtained from a competent authority for
operating the demonstration site associated with the innovative technology,
product or other solution for the duration of the demonstration project,
where information on its GHG emission reduction potential has been
provided.
TRL8: Where the researched, developed or innovated technology, product orother solution is at TRL 8 or higher, life- cycle GHG emissions are calculatedusing Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018
or ISO 14064-1:2018 and are verified by an independent third party.

25 This is currently a draft and will be updated when the CBS4.1 is finalised (Feb 2024)

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 14

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

3.1.2 Adaptation and resilience criteria for hydrogen production equipment, decarbonisation measures andprojects within facilities producing hydrogen
This section describes the Adaptation & Resilience (A&R) Component of the eligibility Criteria for decarbonisation measures. To
demonstrate compliance, all measures must satisfy the requirements of the checklists detailed below in Table 3.
The checklist is a tool to verify that the applicant has implemented sufficient processes and plans in the design, planning, anddecommissioning phases of a measure to ensure that the operation and construction of the asset minimises environmental harmand the asset is appropriately adaptive and resilient to climate change and supports the adaptation and resilience of otherstakeholders in the surrounding system, if applicable.
All elements of the checklist must be addressed, and appropriate evidence provided that these requirements are being met or are
not applicable in respect of the specific measure(s) linked to the bond. It is expected that the applicant’s evidence will encompass
a range of assessment and impact reports and associated data, including but not limited to those reports required to meet national
and local licensing and approval processes. This might include Development Consent Orders, planning regulations adhered to,Environmental Impact Assessments, Vulnerability Assessments, and associated Adaptation Plans. It is the applicant’s responsibility
to provide the relevant information to the verifier. Verifiers must include this information in the scope of verification. For eachquestion in the scorecard:•••A ‘yes’ indicates sufficient proof given.
A ‘no’ indicates insufficient proof.
In case of a ’n/a,’ please justify why the question is not applicable.

Table 3 Adaptation and resilience checklist for decarbonisation measures in facilities producing hydrogen

No.
1.

Boundaries of the measure are defined using:
1. a listing of all assets and activities associated with the use of the bond proceeds,
2. a map of their location, and3. identification of the expected operational life of the activity, asset or project.

1.2

Critical interdependencies between the measure(s) and the system within which it operates are
identified. Identification of these interdependencies should consider the potential for adverse
impacts arising from, but not limited to:
1. relationships of the measure(s) to nearby flood zones;
2. relationships of the measure(s) to surrounding water bodies and water courses;
3. reduction in biodiversity or High Conservation Value 26 habitat;
4. dust and other practices that affect air quality;
5. appropriation of land or economic assets from nearby vulnerable groups 27;

2.1

Proof
Given

Overall
Assessment

For verifier tocomplete

Section 1: Clear boundaries and critical interdependencies between the measure and the system it operates within are
identified.

1.1

2.

26

Adaptation and resilience checklist forhydrogen production equipment, decarbonisation measures in facilities producing hydrogen

Section 2: Clear boundaries and critical interdependencies between the measure and the system it operates within are
identified.
Key physical climate risks and indicators of these risks are identified in line with the following
guidelines:

High Conservation Value (HCV) habitat criteria in accordance with www.hcvnetwork.org

27 According to IFC Performance Standards

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 15

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Adaptation and resilience checklist forhydrogen production equipment, decarbonisation measures in facilities producing hydrogen

No.

Proof
Given

Overall
Assessment

For verifier tocomplete•

Risks are identified based on (a) a range of climate hazards, and (b) information about risks inthe current local context, including reference to any previously identified relevant hazard zones,e.g., flood zones.
It is essential that the climate risks being assessed and addressed cover those that are of greatest
relevance to industrial facilities and infrastructure such as hydrogen production plants and otherinfrastructure. The physical characteristics of climate change that must be considered in the risk
assessment include:• Temperature riseo High temperatures can impact the operation and efficiency of certain types of equipment.
• Increasing intense precipitation eventso Heavy rainfall can result in flash pluvial flooding, which could significantly impact industrial
assets.
o Drought may alter or reduce availability of water with temperature increase.
• Changes in cloud cover, wind speed or increasing temperature extremeso Poses risks to the availability of reliable energy, both electrical or thermal.
• Sea-level riseso Potential for flooding of coastal infrastructure and assets at risk from storm surge events.
• Increased soil erosion
o Risks to the availability of raw materials.
o Risk to transport routes for supply chains.
Guidance for carrying out Risk Assessments:• Users should apply climate scenarios based on representative concentration pathway (RCP) 4.5
and 8.5 or similar/ equivalent to ensure consideration for worst case scenario.
• Risk assessments should use both top-down methods and bottom-up methods that look atinherent system vulnerabilities in local context.
• A broad range of models can be used to generate climate scenarios.
• For risk assessment, the TCFD The Use of Scenario Analysis in disclosure of Climate-Related
Risks and Opportunities is recommended.
3.
3.1

The equipment must be tolerant to the range of climate hazards identified in item 2 of this checklist
and not lock-in conditions that could result in maladaptation.

3.2.

Risk reduction actions/strategies must be tolerant to a range of climate hazards and not lock-in
conditions that could result in maladaptation.

4.
4.1

28

Section 3: The measure is suitable to climate change conditions over its operational life

Section 4: The measure does no harm to the climate resilience of the defined system it operates within, as indicated by
the boundaries of and critical interdependencies with that system as identified in item 1 in this checklist.
The equipment itself does not pose significant risk of harm to the system it is located within orothers’ natural, social, or financial assets according to the principle of best available evidence during
the investment period, taking into account the boundaries and critical interdependencies as definedin item 1 in this checklist. Harm is defined as an adverse effect on any of the following items:
1. Adverse effects on local water bodies and water courses;
2. Air pollution from dust and other pollutants;
3. Relationships of the measure to nearby flood zones;
4. Reduction in biodiversity or High Conservation Value 28 habitat;
5. Appropriation of land or economic assets from nearby vulnerable groups 29.

High Conservation Value (HCV) habitat criteria in accordance with HCV Network

29 According to IFC Performance Standards

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 16

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

3.2 Criteria for facilities producing hydrogen
For certification of an entire facility producing hydrogen, it must:•••

Meet hydrogen production mitigation criteria (Section 3.2.1.1); AND
Cross-cutting mitigation criteria (see Section 3.2.1.2); AND
Meet adaptation and resilience criteria (see Section 3.2.2);

3.2.1 Mitigation criteria for facilities producing hydrogen3.2.1.1••

Emissions intensity thresholds
Hydrogen production facilities must meet an emissions intensity of 3.0 kgCO2e/kgH2. at the time of certification30.
Facilities using fossil resources need to be below the carbon intensity thresholds listed in Table 4.

Table 4. Hydrogen carbon intensity thresholds towards net zero by 205031
Criteria

Asset Type

Production ofhydrogen

32

2023

2030

2040

2050

3.0 kgCO2e/kgH2

1.5 kgCO2e/kgH2

0.7 kgCO2e/kgH2

Close to net zerokgCO2e/kgH2

To demonstrate this, an LCA using a cradle-to-site system boundaries (cradle-to-gate plus transportation emissions) is required as
described in Box 1:. Results should be audited by an independent third party.

30

The 3,0 kgCO2e/kgH2 target was adopted from the EU taxonomy.

31 The 2030 and 2050 emissions intensity targets are based on the Hydrogen council decarbonisation report. The benchmarks were taken considering thetechnologies that should not be incentivised in a near zero emissions trajectory. The background document, sections 4.2.2.1 and 4.2.2.2 contains additional details
on this. The system boundary is cradle to gate plus delivery emissions

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 17

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Box 1: Methodological notes for GHG accounting
Total GHG emissions accounting:refer to Figure 1
𝐸𝑡𝑜𝑡𝑎𝑙 = 𝐸1 + 𝐸2 + 𝐸3 + 𝐸4 − 𝐸5 + 𝐸6 + 𝐸7 + 𝐸8 + 𝐸9
E total: Total emissions33
E1: Upstream feedstock related emissions (including sourcing34, processing, transport and storage. Methane leakages
must be included)
E2: Upstream energy related emissions (including sourcing, processing, transport and storage) 35
E3: Process direct emissions
E4: Emissions related to CCS energy consumption and leakages
E5: CO2 emissions captured
E6: Conditioning emissions (Energy required to compress and purify hydrogen)
E7: Transportation emissions to the site where hydrogen will be used (energy and electricity related emissions). If the
producer is responsible for transportation, it must use primary data. If transportation is done by another party, it canuse secondary data from the transporter or use estimations. 36
E8: Storage of hydrogen
E9: Conversion and reconversion of hydrogen•

GHG emissions up to the point of production
The life cycle assessment should follow the latest releases of ISO std37( Using ISO 14067:2018, ISO 14040, ISO 14044 for lifecycle assessment. Projects located in Europe can alternatively use the methodology referred to in Article 28(5) of Directive(EU)2018/2001.
The methodology factor in a Global Warming Potential for a period of 100 years (GWP100) for methane should be 30 38.
For comparison purposes, emissions must be estimated to achieve a hydrogen purity of at least 99.9 %vol and an
overpressure of at least 3 MPa.

•

GHG emissions from hydrogen transportation
Hydrogen transportation emissions to the site where hydrogen will be used must be included. It includes energy andelectricity related emissions. The life cycle assessment for hydrogen transportation and storage should follow the latest
releases of ISO std (ISO 14083:2023 Quantification and reporting of greenhouse gas emissions arising from transport chain
operations). When hydrogen transportation includes conversion and reconversion processes, their energy related emissions
must be included.

33 Hydrogen leaks must be measured and mitigated. However, due to the lack of clear data available on GWP of hydrogen, it will not be included in the GHG

accounting. The criteria will be updated to include hydrogen leaks in the GHG accounting once science on hydrogen GWP is further developed.
34 Depending on the feedstock, it can be extraction, cultivation, or collection.
35 For hydrogen production using desalination water plants, emissions from electricity must be included in the GHG accounting.
36 Emissions from transport infrastructure, such as the construction of the pipelines or ships should not be included for the purpose of these criteria.
37

ISO standards available at: www.iso.org/standard/38498.html; www.iso.org/standard/37456.html

38 Sixth Assessment Report - IPCC

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 18

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

3.2.1.2

Cross cutting criteria depending on the production process.

In addition to the emissions intensity benchmark, depending on the production process, facilities must meet specificrequirements described in Error! Reference source not found..
Table 5. Criteria for certifying an entire facility depending on the production process.
Type of facility
Using fossil gas

Mitigation criteria
•
•
•

•
•
•

Using electrolysis
with renewableenergy sources(Wind, solar, hydro,
geothermal) energybased electricity

Using biogas as afeedstock•

Demonstrated additional renewable electricity by implementing the following options:a) Renewable-based45 captive power generation, ORb) A power purchase agreement demonstrating a commercial link of the electrolyser withnew renewable power capacity; ORc) Excess of renewable-based electricity that would have been otherwise curtailed.

•Temporal46 and geographical correlation between the additional renewable electricity generationand the electrolyser electricity consumption must be demonstrated. See Box 3 below for moredetails.

•

Methane leakages are measured, or estimated for new projects, and included in the total GHG
accounting. Demonstrated MRV (monitoring, reporting, and verification), and mitigation measures
for methane leaks.
When using biomass, it is demonstrated that the raw material used is derived from existing supply
chains and does not require dedicated production out of arable land. Only waste and residues are
eligible. Wood and other dedicated crops are not eligible 47.

•

39

New facilities commencing operation in 2023 or after are eligible up to 2035. 39
When using CCS or CCU, emissions related must be included in the GHG assessment and lead tomeet the benchmark in Table 4.40
A quantitative performance report of the CCS operations, including the following information 41:
o Intended capture rate capacity, maximum capture rate capacity, annual capture of CO2, annualtransport of CO2, annual storage of CO2.42
Methane leakages must be measured, or estimated for new projects, and included in the GHG
accounting.
Demonstrated MRV (monitoring, reporting and verification), and mitigation measures for methaneleaks on site and upstream.43
There is evidence44 that demonstrates the CO2 will be suitably transported and stored in line withthe criteria for transport and storage in Table 2.

After 2035 new facilities using fossil resources cannot be certified

40 For entire facilities certifications, it is not necessary to demonstrate a minimum CCS capture rate, given that CCS related emissions must be included in the

total GHG accounting. See Box 3.
41 CCS performance report must be verified by an independent party.
42 Zhang et al, 2021. https://pubs.acs.org/doi/pdf/10.1021/acs.estlett.2c00296
43 Additional guidance can be found in the report Best Practice Guidance for Effective Methane Management in the Oil and Gas Sector. Monitoring, Reportingand Verification (MRV) and Mitigation. United Nations Economic Commission for Europe. 2019https://unece.org/fileadmin/DAM/energy/images/CMM/CMM_CE/Best_Practice_Guidance_for_Effective_Methane_Management_in_the_Oil_and_Gas_Sector__Monitoring__Reporting_and_Verification__MRV__and_Mitigation-_FINAL__with_covers_.pdf
44 Either directly from the issuer or through contracts or agreements with a third party.
45 Energy produced from renewable sources such as wind, solar, and small hydropower generation
46

The criteria included monthly temporal correlation as a starting point. It will be updated to hourly basis in 2030.

47 Climate Bonds Bioenergy Criteria. Section 3.2.2. Requirement 2: Reducing the risk of indirect land use impact www.climatebonds.net/standard/bioenergy

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 19

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Box 2: Methodological notes for meeting the emissions intensity threshold
Facilities producing hydrogen using fossil gas:
Applicants issuing a UoP bondApplicants may either:•

Calculate the average facility-level emissions intensity threshold over the term of certification, and demonstrate that thefacility meets that average threshold at the time of certification, OR•

Meet the threshold at the time of certification and commit to 3 yearly assessments by an approved verifier throughout theperiod of certification to verify that at each 3 yearly evaluation, the facility meets the new, lower emissions intensity
threshold in place at that time. If on any 3 yearly verification the facility is not demonstrated to meet the emissions intensity
threshold then in place, certification will be removed; OR•

Meet the threshold at the time of certification, then at half of the bond duration, and at one year before the end of the bondcertification. If on any verification the facility is not demonstrated to meet the emissions intensity threshold then in place,certification will be removed

A linear trajectory should be assumed for time periods between the dates and thresholds provided in Table 4.
Where multiple production facilities are being assessed, this should be done facility by facility, i.e., not averaged across a portfolioof assets.
Example:Option A. Compliant
A 10-year bond starting in 2030 for hydrogen production may demonstrate that the plant’s emissions intensity at
the point of issuance meets the average emissions intensity of the plant pathway between 2030 and 2040:•

2030 threshold = 1.5 kg CO2/kg hydrogen•2040 threshold = 0.6 kg CO2/kg hydrogen•(1.5 + 0.6) / 2 = 1.06 kg CO2/kg hydrogen•

The facility’s emissions intensity in 2030 is already 1 kg CO2/kg hydrogen. This is lower than the necessary averaged threshold(1.06 kg CO2/kg hydrogen) and the facility meets the criterion. No further verification is required for meeting emissions
intensity thresholds.

Option B. Compliant•

A 10-year bond starting in 2035 would have to show compliance in annual reporting for the thresholds of 2035, 2038, and2041. Verification must demonstrate every 3 years that these thresholds are met.

Option C. Compliant•

A 10-year bond starting in 2030 would have to show compliance in annual reporting for the thresholds of 2030, 2035, and2039. Verification must demonstrate that these thresholds are met at every assessment.

To demonstrate compliance with any of the emissions intensity thresholds set in, applicant is required to carry out a GHG
emissions assessment as described in Box 1 above.
Applicants seeking certification of a hydrogen facility (not linked to any financial instrument)
The facility must meet the facility-level pathway threshold at the time of certification.48

48 As this is a point-in-time certification, there is no need to continuously meet the pathway thereafter.

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 20

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Box 3: Notes for demonstrating additionality, temporal and geographic correlation.
Facilities producing electrolytic hydrogen:a)Additionality:• A power purchase agreement demonstrating a commercial link of the electrolyser with new renewable power
capacity: Issuers must show that the renewable power plant started operation simultaneously or after theelectrolyser installation. The total electricity consumption cannot be higher than the electricity supplied by the newrenewable power plants. A producer can use more than one PPA to cover the entire electricity requirements of its
electrolysers.
• Excess of renewable-based electricity that would have been otherwise curtailed: Flexible hydrogen production
projects focusing on times of high renewable generation and low emission factor. Issuers must demonstrate thatthe electrolyser uses renewable energy from an existing renewable plant only during those hours of the year whensurpluses occur.
Additionality is not required when:••

Electrolysis is solving grid imbalances.
If a producer has idle capacity (running at low-capacity factor)b) Temporal correlation: Issuers must demonstrate that the electricity is produced and used simultaneously, monthly, using
telemetry measurement techniques. Renewable electricity that has been locally stored can be used as well.
c)

Geographic correlation: Issuers must demonstrate physical capacity to transport the electricity from the renewablegeneration plant to the electricity consumption site. The electricity must not pass a zone of grid congestion 49.
Temporal and geographic correlation are not required when there is direct connection to a renewable energy source.

49

when a grid overload prevents electricity from reaching the consumer.

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 21

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

3.2.2 Adaptation and Resilience criteria for facilities producing hydrogen3.2.2.1

The adaptation and resilience checklist

This section describes the Adaptation & Resilience (A&R) Component of the eligibility Criteria for hydrogen production facilities. To
demonstrate compliance, all facilities must satisfy the requirements of the checklists detailed below in Table 6.
The checklists are tools to verify that the applicant has implemented sufficient processes and plans in the design, planning anddecommissioning phases of a facility/facilities to ensure that the operation and construction of the facility minimises environmental
harm and the facility is appropriately adaptive and resilient to climate change and supports the adaptation and resilience of otherstakeholders in the surrounding system, if applicable.
All elements of the checklist must be addressed, and appropriate evidence provided that these requirements are being met or are
not applicable in respect of the specific facility linked to certification. It is expected that the applicant’s evidence will encompass a
range of assessment and impact reports and associated data, including but not limited to those reports required to meet national
and local licensing and approval processes. This might include Development Consent Orders, planning regulations adhered to,Environmental Impact Assessments, Vulnerability Assessments and associated Adaptation Plans.
It is the applicant’s responsibility to provide the relevant information to the verifier. Verifiers must include this information in thescope of verification.
For each question in the scorecard:•••A ‘yes’ indicates sufficient proof given.
A ‘no’ indicates insufficient proof.
In case of a ’n/a,’ please justify why the question is not applicable.

Table 6: Adaptation and resilience criteria for hydrogen production facilities
Adaptation and resilience checklist forhydrogen production facilities

No.

Proof Given

Overall
Assessment

For verifier to complete

1.

Section 1: Clear boundaries and critical interdependencies between the production facility and the system it operates
within are identified.

1.1

Boundaries of the infrastructure are defined using:
1.
2.
3.

1.2

a listing of all assets and activities associated with the use of the bond proceeds,
a map of their location, andidentification of the expected operational life of the activity, asset or project.

Critical interdependencies between the infrastructure and the system within which it operates are
identified. Identification of these interdependencies should consider the potential for adverse
impacts arising from, but not limited to:
1.
2.
3.
4.
5.
6.

The effects of supply disruption or interruption on dependent electricity users or populations;
Exacerbation of wildfires;
Relationships of the asset/activity to surrounding water bodies and water courses;
Relationships of the asset/project to residential neighbourhoods surrounding the plant;
Damage or reduction in value of neighbouring property due to boundary structures at risk offalling during storm events;
Reduction in value of neighbourhood property due to pollution caused by the chemical facilities,
due to extreme weather events (e.g., release of toxic chemicals due to failure in safety systems
in case of extreme weather events);

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 22

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Adaptation and resilience checklist forhydrogen production facilities

No.

Overall
Assessment

Proof Given

For verifier to complete

50

7. Reduction in biodiversity or High Conservation Value habitat ;8. Relationships of the asset/project to nearby flood zones;
9. Fire and other practices that affect air quality;
10. Appropriation of land or economic assets from nearby vulnerable groups 51;
2.

Section 2: An assessment has been undertaken to identify the key physical climate hazards to which the production facility
will be exposed and vulnerable to over its operating life

2.1

Key physical climate risks and indicators of these risks are identified based on:a) a range of climate hazards, andb) information about risks in the current local context, including reference to any previously
identified relevant hazard zones, e.g., flood zones. In order to be confident that assets andactivities are robust and flexible in the face of climate change uncertainties, it is essential thatthe climate risks being assessed and addressed cover those that are of greatest relevance tothe production of hydrogen.
• Is there a good understanding of the risks facing the facility today? In five years? In ten
years?
• Are risks defined and detailed?
• Are risk areas for hazardous materials52 identified?
• Was a hazard assessment conducted to identify toxic, flammable, volatile and reactive
chemicals53 54?
• Is there an accident management plan in place?
• Time horizon is set according to the severity of the risks. Higher risk locations: shorter time(every 5 years). Lower risk locations: Longer time (every 10 years). See Section 5.3 of the
Background Paper for tools and reference guidelines to assess degree of risks.
• Where accurate assessments of climate variability for specific locations are not possible,
use worst-case scenarios.
Optional guidance for carrying out risk assessments is offered in Section 5.3 of the Background
Document.
The potential impacts that must be considered in the risk assessment include the ones describedin the following sections (2.2-2.9)55:

2.2

Temperature rise and heat waves
1.
2.
3.
4.
5.
6.
7.
8.

Potential increase in temperature may result in expansion and stress of plant, pipework andfittings.
There could be an increase in dust emissions from the site.
There could be an increase in odour from the site.
Increase in fugitive or diffuse emissions from the site.
Increase in pollution
Increase in water consumed for cooling purposes.
Increase in energy consumption due to added pumping of cooling water around site.
Limited cooling, which implies that throughputs could need to be reduced or processes shutdown

50 High Conservation Value (HCV) habitat criteria in accordance with www.hcvnetwork.org
51 According to IFC Performance Standards
52

Hazardous materials include Explosive, flammable, combustible, corrosive, oxidising, toxic, infectious, or radioactive materials (Federal Emergency
Management Agency)
53 UCLID (International Uniform Chemical Information Database) software is a recommended source of data on intrinsic and hazard properties of chemical

substances54

www.openaccessgovernment.org/climate-toxicology-human-health/68647

55 Chemical Industries Association, 2021. Safeguarding chemical businesses in a changing climate. How to prepare a Climate Change Adaptation Plan

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 23

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Adaptation and resilience checklist forhydrogen production facilities

No.
9.
2.3

2.
3.
4.
5.
6.
7.
8.

5.
6.

Volatile chemicals can exceed their temperature range during transportation

Failure of trace heating systems
a. Freezing of cooling water, resulting in blockages - particularly on long pipelines and storage
in exposed areas.
b. Process failures
Pipework ruptures, affecting: Boiler condensate, process water, cooling water, effluent
systems, this in turn may lead to process interruption.
Failure of pH control due to caustic systems solidifying (such as effluent treatment)
Catalytic processes can be affected, reducing performance
Freezing of coolant lines, equipment, and chemical reaction vessel resulting in rising reaction
temperature and pressure
Frozen onsite roadways may restrict access for staff and emergency vehicles.
Lack of water for fire suppression
Damage to site infrastructure from snow-loading over extended periods.

Flooding could lead to increased site surface water and flash flooding
The site may experience reduced access or egress due to site flooding.
Stored substances can react with water or be contaminatedUncontrolled chemical reactions, for example due to shut down of refrigeration systems as aconsequence of power outages and lack of backup facilities
Emergency relief systems, which work at atmospheric discharge pressure can be affected dueto the static head of water.
Process equipment running hot materials can be affected by thermal stressSeason rainfall increase
1.
2.

2.6

For verifier to complete

Daily extreme rainfall
1.
2.
3.
4.

2.5

Overall
Assessment

Extreme cold weather
1.

2.4

Proof Given

Overland flow or groundwater flooding.
Flooding and associated impacts, as previously identified.

Sea level rise
If located near the coast a site could experience increased:
1.
2.
3.

2.7

Drier seasons
1.
2.

2.8

Potential increased use or reliance on mains water for dust suppression and cleaning.
Potential for increase in dust emissions from the site.

Decreased river flow
1.

2.9

Risk of flooding and associated impacts, as previously identified
Corrosion due to increase in saltwater spray
Reduction of useful life of assets due to frequent exposure to salty water

Reduced dilution available in receiving watercourse for discharge of effluent, resulting inincreased pollution

Wildfires
1.
2.
3.

Severe damage on buildings, process equipment and industrial infrastructure
Release of toxic pollutants
Volatile organic solvents with low flash points can exacerbate the fire risk

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 24

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Adaptation and resilience checklist forhydrogen production facilities

No.
4.
5.
6.

Overall
Assessment

Proof Given

For verifier to complete

Explosions
Pipelines for transporting oil and gas, fuel storage facilities, external floating roof tanks for
combustible liquids can spread the fire
Supply chain disruption

3.

Section 3: The measures that have or will be taken to address those risks, mitigate them to a level such that the production
plant is suitable to climate change conditions over its operational life have been identified and planned if not yet
undertaken.

3.1

The following are examples of risk management activities56 that bond Applicant might consider, orthat might be adopted as part of regulations (e.g., codes and standards). This list is not exhaustiveand bond Applicant should fully assess the mitigation measures that are relevant to the climate risks
and impacts identified in the risk assessment. Measures depend on the specific and local conditionsof an asset.

3.2

Temperature rise and heat waves
1.
2.
3.
4.
5.
6.
7.
8.
9.

3.3

Extreme cold weather
1.
2.
3.

4.
5.
6.
7.
3.4

Identify temperature limits that could impact your processes and workers
Regularly inspect and maintain insulation, particularly on pipework and equipment in exposed
areas of the site.
Consider added insulation on pipework containing water review operating procedures to makesure pipework is not left full of static water when not in use identify any potential dead-legs
where static water may be held up
Reviewing the capability of caustic systems to remain liquid at expected colder temperatures.
Regularly inspect and maintain roadways during winter and remove any standing water
Make sure grit is available to treat road surfaces
Review the design of structures to withstand increased loadings.

Daily extreme rainfall
1.

2.
3.5

Identify temperature limits that could impact your processes and workers
Regular inspection and preventative maintenance of plant and equipment
Regular site cleaning and use of dust suppression systems
Appropriate odour abatement is in place and maintained effectively
Appropriate odour management plan is in place
Make sure an appropriate fugitive or diffuse emissions plan is in place.
Water can be cleaned and recirculated for reuse on site
Alternative cooling systems.
Assess how efficient the current cooling system is, and to propose upgrades or modifications
where necessary.

Suitable measures are in place for the management of expected surface water and flood waters
a. Drainage systems are inspected and maintained
b. External areas where wastes are handled or stored are provided with contained drainagec. The site drainage system and effluent treatment plant has sufficient storage or treatment
capacity
Make sure there are suitable alternative transport routes to and from the site.

Season rainfall increase
1.

Make sure suitable measures are in place for the management of anticipated overland flow or
groundwater flooding.

56 Chemical Industries Association, 2021. Safeguarding chemical businesses in a changing climate. How to prepare a Climate Change Adaptation Plan

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 25

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Adaptation and resilience checklist forhydrogen production facilities

No.
2.

3.

3.6

2.

2.

Prepare flood plan including:a. Risk assessment of process equipment and services at greatest risk from flooding
b. Provision of emergency pumps to remove floodwater and identification of lowest risk
location for discharge of floodwaters
c. Protection of control and electrical systems
d. Identification and protection of flat bottom tanks at risk of floating in floodwater
Ensure backup power, capable of functioning during extreme weather events and guarantee
the stability and safety of the stored chemicals.

Prepare flood plan including:a. Risk assessment of process equipment and services at greatest risk from flooding
b. Provision of emergency pumps to remove floodwater and identification of lowest risk
location for discharge of floodwaters
c. Protection of control and electrical systems
d. Identification and protection of flat bottom tanks at risk of floating in floodwater
Prevent corrosion. Measures could include making sure that plant or equipment prone tocorrosion are:a. Protected, such as by being painted with resistant coating
b. Regularly inspected and maintained

Measures are in place to review and minimise water use and to maximise collection and use of
rainfalla. Mains water capacity is adequate, taking into account reduced availability of rainwater for
activities such as dust suppression and cleaning
Potential for increase in dust emissions from the site.

Decreased river flow
1.
2.

3.9

For verifier to complete

Drier seasons
1.

3.8

Overall
Assessment

Sea level rise
1.

3.7

Proof Given

Review the environmental risk assessment for discharge to water from on-site effluent
treatment
Check existing environmental risk assessment to make sure low river flow used in assessment
remains valid - if not, discuss with Environment Agency (local site inspector and water qualityteam) and carry out an updated environmental risk assessment

Wildfires
1.

2.

3.
4.

Implement active fire prevention measures such as fire detector, gas detector, design ofsprinkler systems, use of line detectors, design of deluge systems, design of gaseousextinguishing systems29
Implement passive fire protection measures, like permanent inertization of warehouses,
support for pipe racks, fireproofing cabling, use of fire resistance cable coating, protection oftank farms
Storage protection measures such as distancing to avoid fires from spreading within anindustrial complex
Wildland and vegetation management

4.

Section 4: The facilities do no harm to the climate resilience of the defined system they operate within, as indicated by theboundaries of and critical interdependencies with that system as identified in item 1 in this checklist.

4.1

The facilities themselves do not pose significant risk of harm to the system they are located withinor others’ natural, social, or financial assets according to the principle of best available evidence

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 26

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Adaptation and resilience checklist forhydrogen production facilities

No.

Proof Given

Overall
Assessment

For verifier to completeduring the investment period, taking into account the boundaries and critical interdependencies as
defined in item 1 in this checklist.
1.
2.
3.
4.
5.

The effects of supply disruption or interruption on dependent electricity users or populations;
Exacerbation of wildfires;
Relationships of the asset/activity to surrounding water bodies and water courses;
Relationships of the asset/project to residential neighbourhoods surrounding the plant;
Damage or reduction in value of neighbouring property due to boundary structures at risk offalling during storm events;
6. Reduction in value of neighbourhood property due to pollution caused by the chemical facilities,
due to extreme weather events (e.g., release of toxic chemicals due to failure in safety systems
in case of extreme weather events);
7. Reduction in biodiversity or High Conservation Value 57 habitat;
8. Relationships of the asset/project to nearby flood zones;
9. Fire and other practices that affect air quality;
10. Appropriation of land or economic assets from nearby vulnerable groups 58.
5.

Section 5: There will be ongoing monitoring and evaluation of the relevance of the risks and resilience measures andrelated adjustments to those measures will be taken as needed.

5.1

Indicators for risks identified under item 2 in this checklist are provided.
•

5.2

Risk thresholds/trigger levels, for which new adaptation actions are set59, are monitored

Indicators for risk mitigation measures identified under item 3 in this checklist are provided.
•

5.3

Determine whether planned outputs and outcomes from adaptation actions have beenachieved60.

Applicants have a viable plan to annually monitor and evaluate:
Climate risks thresholds/triggers, climate resilience performance, and appropriateness of climate
resilience measure(s) and to adjust as necessary to address evolving climate risks.

3.2.2.2

Other environmental impacts

3.2.2.2.1

Overarching requirements

An Environmental Impact Assessment (EIA) for the facility and its site consistent with local regulations and conducted by anindependent third-party expert. In addition, the following specific requirements apply:a.

Pollution prevention
For hydrogen produced from fossil resources, emissions SO2 , NOx , CO, and dust must be lower than Best Available
Techniques for refining of oil and gas61.
b. Land use• For hydrogen produced from biomass, applicant must demonstrate that the bioenergy production meets the low
iLUC (Indirect Land Use Change) risk biomass criteria and compliance indicators under the RSB optional module. 62
63

57 High Conservation Value (HCV) habitat criteria in accordance with www.hcvnetwork.org
58 According to IFC Performance Standards
59 The adaptation process Coastal Climate Adaptation Decision Support (C-CADS), 2018.
60 National Climate Change Adaptation Research Facility. NCCARF, 2018.
61 DIRECTIVE 2010/75/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 24 November 2010 on industrial emissions (integrated pollution prevention

and control. https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014D0738&from=EN
62

Climate Bonds Bioenergy Criteria www.climatebonds.net/files/files/standards/Bioenergy/Bioenergy%20Criteria%20Document%20Mar%202021.pdf

63 https://rsb.org/certification/certification-schemes/rsb-iluc-low-risk-biomass-module/

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 27

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certificationc.

3.2.2.3

Water• The environmental impact assessment must include potential impacts on water.
• A water resource management plan. Specification of when freshwater aquifers will be used, and whether theseaquifers are currently used for human consumption. 64• A water-use license issued by the regional environmental regulator as part of the environmental authorisation
process.
• A local water availability assessment and demonstration that water use for hydrogen production is not impacting
water availability for human consumption and agriculture. Hydrogen production assets should not be located inregions with high water stress65 that do not have seawater desalination as an alternative.
• For hydrogen production using desalination water plants: a brine management plan, developed and approved aswithin the EIA process, addressing all potential environmental risks and mitigation measures associated with brine
disposal.

Disclosure Component

In the interests of transparency and disclosure, Applicant of Certified Climate Bonds are required to publicly disclose the following
in respect of the assets and use-of-proceeds incorporated in that deal:••64

The planning standards, environmental regulations, and other regulations that the facility has been required to comply
with.
The environmental impacts assessment and the measures to address potential risks.

An aquifer that contains fewer than 10,000 mg/L total dissolved solids. U.S. EPA Underground Injection Control Program (2014).

65 When the demand for water exceeds the supply or when poor quality limits its use

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 28

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

4 Hydrogen delivery criteria
The hydrogen delivery criteria cover all the activities related to conditioning, conversion, transportation, distribution, and storageof hydrogen. These criteria are focused on specific projects not related to hydrogen production. However, companies or projects
dedicated to hydrogen delivery activities must present the emissions intensity of the hydrogen producer, verified by an independent
party, demonstrate compliance with the 3.0 kgCO2e/kgH2 benchmark in section 3.2.1.1, or presenting an origin certification scheme,
or a well stablished and recognised low-carbon hydrogen certification. For certification, the hydrogen delivery project must:a.
b.

Meet mitigation criteria for hydrogen delivery projects (see Section 4.1); AND
Meet adaptation and resilience criteria (see Section 4.2).

4.1 Mitigation criteria for hydrogen delivery projects
4.1.1 Hydrogen conditioning
Table 7: Mitigation criteria for conditioning
Area

ActivityCompression orliquefaction

Acquisition of equipment
for hydrogen compression
or liquefaction.

Mitigation criteria•

Equipment must be used for low-carbon hydrogen that meets the 3.0
kgCO2e/kgH2 benchmark in section 3.2.1.1, or that has an origin
certification scheme, or a well stablished and recognised low-carbonhydrogen certification.

Operation of hydrogencompression orliquefaction.

4.1.2 Hydrogen transportation
Table 8: Mitigation criteria for transportation66
Area

Activity

Mitigation criteria

Pipelines
Transmission anddistribution
networks

Construction oroperation of newtransmission anddistribution networks
dedicated to hydrogen.

•••Conversion of existingfossil gas networks to
100% hydrogen.

•

Networks must be used to transport low-carbon hydrogen thatmeets the 3.0 kgCO2e/kgH2 benchmark in section 3.2.1.1, or that hasan origin certification scheme, or a well stablished and recognised
low-carbon hydrogen certification.
Hydrogen leak detection, repair mechanisms and mitigation
measures must be implemented. A plan to avoid and minimisehydrogen leakages must be presented.67
Follow the latest releases of the ISO/TR 15916:2016. Basic
considerations for the safety of hydrogen systems.
Networks must be used to transport low-carbon hydrogen thatmeets the 3.0 kgCO2e/kgH2 benchmark in section 3.2.1.1, or that hasan origin certification scheme, or a well-stablished and recognised
low-carbon hydrogen certification.

66 Methanol and ammonia production can be certified under the basic chemicals criteria.
67

Recommendations for mitigating and preventing hydrogen emissions from infrastructure can be found in the following link
www.eesi.org/files/H2EmissionsMitigation_FACTSHEET_08MAY2023.pdf
Hydrogen Criteria- Climate Bonds Initiative

P a g e | 29

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Area

Activity

Mitigation criteria

Pipelines•••

Projects for blending hydrogen into fossil gas pipelines are noteligible.
Hydrogen leak detection, repair mechanisms, and mitigation
measures must be implemented. A plan to avoid and minimisehydrogen leakages must be presented.
Follow the latest releases of the ISO/TR 15916:2016. Basic
considerations for the safety of hydrogen systems.

Liquid Organic
Hydrogen Carriers(LOHC)

Using LOHC to store andtransport hydrogen•

LOHC must be used to store and transport low-carbon hydrogen thatmeets the 3.0 kgCO2e/kgH2 benchmark in section 3.2.1.1.

Ammonia

Using ammonia to store
and transporthydrogen68•

Ammonia must be used to store and transport low-carbonhydrogen that meets the 3.0 kgCO2e/kgH2 benchmark in section
3.2.1.1.

MethanolUsing methanol to store
and transporthydrogen69•

Methanol must be used to store, and transport low-carbonhydrogen that meets the 3.0 kgCO2e/kgH2 benchmark in section
3.2.1.1.

Road transport

Transporting hydrogenby truck•Transportation must be for low-carbon hydrogen that meets the 3.0
kgCO2e/kgH2 benchmark in section 3.2.1.1.
Hydrogen leak detection, repair mechanisms and mitigation
measures must be implemented. A plan to avoid and minimisehydrogen leakages must be presented.70•

Shipping transport

Transporting hydrogenby shipping••

Transportation must be for low-carbon hydrogen that meets the 3.0
kgCO2e/kgH2 benchmark in section 3.2.1.1.
Hydrogen leak detection, repair mechanisms and mitigation
measures must be implemented. A plan to avoid and minimisehydrogen leakages must be presented.71

4.1.3 Hydrogen storage
Table 9: Mitigation criteria for storage
Area

Activity

Mitigation criteria

Storage Infrastructure
Underground
Storage

Construction ofhydrogen storage
facilities

•

•

68

Hydrogen stored in the facility must be low carbon, that that meetsthe 3.0 kgCO2e/kgH2 benchmark in section 3.2.1.1, or that has an
origin certification scheme, or a well-stablished and recognised
low-carbon hydrogen certification.
Hydrogen leak detection, repair mechanisms and mitigation
measures must be implemented. A plan to minimise hydrogenleakages must be presented.

Ammonia produced as a final product and not for hydrogen transportation and storage purposes must be certified under the basic chemicals criteria.

69 Methanol production as a final product and not for hydrogen transportation and storage purposes must be certified under the basic chemicals criteria.
70 Recommendations for mitigating and preventing hydrogen emissions from infrastructure can be found in the following link

www.eesi.org/files/H2EmissionsMitigation_FACTSHEET_08MAY2023.pdf
71

Recommendations for mitigating and preventing hydrogen emissions from infrastructure can be found in the following link
www.eesi.org/files/H2EmissionsMitigation_FACTSHEET_08MAY2023.pdf
Hydrogen Criteria- Climate Bonds Initiative

P a g e | 30

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Area

Activity•

Follow the latest releases of the ISO/TR 15916:2016. Basic
considerations for the safety of hydrogen systems.

Operation of hydrogenstorage facilities

•

And

•

Hydrogen stored in the facility must low carbon, that meets the 3.0
kgCO2e/kgH2 benchmark in section 3.2.1.1, or that has an origin
certification scheme, or a well-stablished and recognised low-carbonhydrogen certification.
Hydrogen leak detection, repair mechanisms and mitigation
measures must be implemented. A plan to minimise hydrogenleakages must be presented.
Cushion gas is not CO2 or methane.
Follow the latest releases of the ISO/TR 15916:2016. Basic
considerations for the safety of hydrogen systems

Conversion of existingunderground fossil gas
storage facilities
Hydrogen storage
tanks

Mitigation criteria

Acquisition andinstallation ofcompressed or liquifiedhydrogen storage tanks.

•••

Hydrogen stored in the tanks must be low carbon, that meets the
3.0 kgCO2e/kgH2 benchmark in section 3.2.1.1, or that has an origin
certification scheme, or a well-stablished and recognised lowcarbon hydrogen certification.

4.1.4 Hydrogen delivery R&D projects
R&D projects72
Research, appliedresearch andexperimental
development ofsolutions, processes,
technologies,
business models andother products
dedicated to thesubstantial
reduction,
avoidance orremoval of GHG
emissions fromhydrogenproduction

•
•

•

•

TRL1 to TRL5: Early-stage R&D may be considered eligible if aiming to bring the solution,
product or technology to TRL6.
TRL6 : Projects require that the technology is fine-tuned to a variety of operating conditions,the process is reliable and the performances match the expectations, interoperability withother connected technologies is demonstrated, the manufacturing approach is clearly defined
and that all environmental, regulatory and socio-economic issues are addressed. The project
brings the solution, process, technology, business model or other product through TRL 1-5;
TRL6 or 7: Where the researched, developed or innovated technology, product or othersolution is at TRL 6 or 7, life- cycle GHG emissions are evaluated in simplified form by theentity carrying out the research. The entity demonstrates one of the following, whereapplicable: (a) a patent not older than 10 years associated with the technology, product orother solution, where information on its GHG emission reduction potential has been provided;(b) a permit obtained from a competent authority for operating the demonstration site
associated with the innovative technology, product or other solution for the duration of thedemonstration project, where information on its GHG emission reduction potential has been
provided.
TRL8: Where the researched, developed or innovated technology, product or other solution is
at TRL 8 or higher, life- cycle GHG emissions are calculated using Recommendation
2013/179/EU or, alternatively, using ISO 14067:2018 or ISO 14064-1:2018 and are verified byan independent third party.

72 This is currently a draft and will be updated when the CBS4.1 is finalised (Feb 2024)

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 31

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

4.2 Adaptation and Resilience Criteria for hydrogen delivery projects
This section describes the Adaptation & Resilience (A&R) Component of the eligibility Criteria for hydrogen delivery projects. To
demonstrate compliance, all measures must satisfy the requirements of the checklists detailed in Table 10.
The checklist is a tool to verify that the applicant has implemented sufficient processes and plans in the design, planning anddecommissioning phases of a measure to ensure that the operation and construction of the asset minimises environmental harmand the asset is appropriately adaptive and resilient to climate change and supports the adaptation and resilience of otherstakeholders in the surrounding system, if applicable.
All elements of the checklist must be addressed, and appropriate evidence provided that these requirements are being met or are
not applicable in respect of the specific measure(s) linked to the bond. It is expected that the applicant’s evidence will encompass
a range of assessment and impact reports and associated data, including but not limited to those reports required to meet national
and local licensing and approval processes. This might include Development Consent Orders, planning regulations adhered to,Environmental Impact Assessments, Vulnerability Assessments, and associated Adaptation Plans.
It is the applicant’s responsibility to provide the relevant information to the verifier. Verifiers must include this information in thescope of verification.
For each question in the scorecard:•••A ‘yes’ indicates sufficient proof given.
A ‘no’ indicates insufficient proof.
In case of a ’n/a,’ please justify why the question is not applicable.

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 32

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Table 10: Adaptation and resilience checklist for hydrogen delivery projects

Adaptation and resilience checklist forhydrogen delivery projects, including conditioning, transportation and storage.

No.

1.

Proof
Given

Overall
Assessment

For verifier tocomplete

Section 1: Clear boundaries and critical interdependencies between the measure and the system it operates within are
identified.

1.1

Boundaries of the measure are defined using:

1.
2.
3.

1. listing of all assets and activities associated with the use of the bond proceeds,
2. a map of their location, and3. identification of the expected operational life of the activity, asset, or project.

1.2

Critical interdependencies between the measure(s) and the system within which it operates are
identified. Identification of these interdependencies should consider the potential for adverse
impacts arising from, but not limited to:

1.
2.
3.
4.
5.

1. relationships of the measure(s) to nearby flood zones;
2. relationships of the measure(s) to surrounding water bodies and water courses;
3. reduction in biodiversity or High Conservation Value 73 habitat;
4. dust and other practices that affect air quality;
5. appropriation of land or economic assets from nearby vulnerable groups 74;

2.

Section 2 Clear boundaries and critical interdependencies between the measure and the system it operates within are
identified.

2.1

Key physical climate risks and indicators of these risks are identified in line with the following
guidelines:•

Risks are identified based on (a) a range of climate hazards, and (b) information about risks inthe current local context, including reference to any previously identified relevant hazard zones,e.g., flood zones.

It is essential that the climate risks being assessed and addressed cover those that are of greatest
relevance to industrial facilities and infrastructure such as hydrogen production plants and otherinfrastructure. The physical characteristics of climate change that must be considered in the risk
assessment include:•

Temperature riseo High temperatures can impact the operation and efficiency of certain types of equipment.

•

Increasing intense precipitation eventso Heavy rainfall can result in flash pluvial flooding, which could significantly impact industrial
assets.
oDrought may alter or reduce availability of water with temperature increase.

•

Changes in cloud cover, wind speed or increasing temperature extremeso Poses risks to the availability of reliable energy, both electrical or thermal.

•

Sea-level riseso Potential for flooding of coastal infrastructure and assets at risk from storm surge events.

•

Increased soil erosion
o Risks to the availability of raw materials.
oRisk to transport routes for supply chains.

Guidance for carrying out Risk Assessments:•

73

Users should apply climate scenarios based on representative concentration pathway (RCP) 4.5
and 8.5 or similar/ equivalent to ensure consideration for worst case scenario.

High Conservation Value (HCV) habitat criteria in accordance with www.hcvnetwork.org

74 According to IFC Performance Standards

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 33

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Adaptation and resilience checklist forhydrogen delivery projects, including conditioning, transportation and storage.

No.
•
•
•
3.

3.2.

Risk reduction actions/strategies must be tolerant to a range of climate hazards and not lock-in
conditions that could result in maladaptation.
Section 4: The measure does no harm to the climate resilience of the defined system it operates within, as indicatedby the boundaries of and critical interdependencies with that system as identified in item 1 in this checklist.
The equipment itself does not pose significant risk of harm to the system it is located within orothers’ natural, social, or financial assets according to the principle of best available evidence during
the investment period, taking into account the boundaries and critical interdependencies as definedin item 1 in this checklist. Harm is defined as an adverse effect on any of the following items:
1.
2.
3.
4.
5.

75

For verifier tocomplete

Section 3: The measure is suitable to climate change conditions over its operational life
The equipment must be tolerant to the range of climate hazards identified in item 2 of this checklist
and not lock-in conditions that could result in maladaptation.

4.1

Overall
Assessment

Risk assessments should use both top-down methods and bottom-up methods that look atinherent system vulnerabilities in local context.
A broad range of models can be used to generate climate scenarios.
For risk assessment, the TCFD The Use of Scenario Analysis in disclosure of Climate-Related
Risks and Opportunities is recommended.

3.1

4.

Proof
Given

Adverse effects on local water bodies and water courses;
Air pollution from dust and other pollutants;
Relationships of the measure to nearby flood zones;
Reduction in biodiversity or High Conservation Value75 habitat;
Appropriation of land or economic assets from nearby vulnerable groups76.

High Conservation Value (HCV) habitat criteria in accordance with HCV Network

76 According to IFC Performance Standards

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 34

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

5 Criteria for entities and Sustainability Linked Debt (SLD)
The following sections detail similar, yet distinct, criteria depending on what is being certified:••

A whole entity (in this case, a business segment or part of a company producing, transporting, or storing hydrogen)- Section 5.1
SLD issued by an entity dedicated to the production, transportation, or storage of hydrogen - Section 5.2

5.1 Sector specific criteria for eligible non-financial corporates
Entities producing hydrogen:
Two tiers of certification are available for entities producing hydrogen, described in Table 11.
Table 11: Entities Tiered Certifications
Entity Tier

Certification Requirements for Entities Producing Hydrogen
Hydrogen Production Climate Mitigation Criteria
1.

2.

3.
Tier 1(Aligned)

4.

At the time of certification, the Certified Entity’s hydrogen production facilities average emissions intensity meetsthe entity level pathway threshold and their future Performance Targets for those facilities continue to align withthose declining thresholds through to 2050 (see Section 3.2.1.1, Table 477); andThe Assessed Entity’s Transition Plan provides credible evidence that those future Performance Targets to 2050
will be met (see the Climate Bonds Standard v4.0 (Part C Section 3 and 4) for detailed requirements in respectof the Transition Plan and other commitments); andThe Assessed Entity provides sufficient external transparency and assurance in respect of these Performance
Targets and Transition Plans (see the Climate Bonds Standard v4.0 (Part C Section 5) for detailed requirements
in respect of disclosure and external assurance); andIf any of the Assessed Entities current of future hydrogen production facilities use alternative feedstocks oralternative fuels, implement electrification or use CCU or CCS, they must meet the respective cross-cutting
criteria in Section 3.1, Table 2

Hydrogen Production Adaptation and Resilience Criteria:
At the time of certification, all the Assessed Entity’s facilities meet the adaptation and resilience criteria described in
Section 3.2.2 and that is reassessed and reconfirmed every five years during the term of the bond.
Hydrogen Production Climate Mitigation Criteria
Tier 2(Transition)

The criteria are the same as for Tier 1, except in respect of point 1:
The Assessed Entity’s hydrogen production facilities average emissions intensity does not meet the emissions
intensity threshold at the time of certification, but the future Performance Targets align with those entity-levelemissions thresholds by 2030 and continue to align thereafter through to 2050 (see Section 3.2.1.1, Table 4)

77 For entity certification, the declining thresholds requirement is regardless of the hydrogen production technology used.

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 35

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Entities delivering hydrogen:
Two tiers of certification are available for entities dedicated to hydrogen conditioning, transporting, and storing operations,described in Table 12
Table 12: Entities Tiered Certifications
Entity Tier

Certification Requirements for Entities Delivering Hydrogen
Hydrogen Delivery (transportation and storage) Climate Mitigation Criteria•

At the time of certification, the hydrogen delivery Assessed Entity demonstrates that the average emissions
intensity of the hydrogen they condition, transport or store meets the 3.0 kgCO2e/kgH2 benchmark in section
3.2.1.1; andThe Assessed Entity provides credible evidence that demonstrate that their future operations will be focused
only on delivering low-carbon hydrogen that meets the 3.0 kgCO2e/kgH2 benchmark in section 3.2.1.1; andThe Assessed Entity provides sufficient external transparency and assurance in respect of these Performance
Targets and Transition Plans (see the draft Climate Bonds Standard v4.0 (Part C Section 5) for detailed
requirements in respect of disclosure and external assurance); andThe Assessed Entities meet the respective criteria in Section 4•
Tier 1•(Aligned)•

Hydrogen Delivery Adaptation and Resilience Criteria:
At the time of certification, all of the Assessed Entity’s segments or business units meet the adaptation and resilience
criteria described in section 4.2 and that is reassessed and reconfirmed every five years during the term of the bond.
Hydrogen Delivery
The criteria are the same as for Tier 1, except in respect of point 1:
Tier 2The Assessed Entity cannot demonstrate that the average emissions intensity of the hydrogen to be transported or(Transition) stored meets the pathway threshold78 at the time of certification, but their future Performance Targets align withthose entity-level emissions thresholds by 2030 and continue to align thereafter through to 2050 (see Section
3.2.1.1, Table 4).

5.2 Criteria for Sustainability Linked Debt (SLDs)
SLDs cover Sustainability Linked Bonds (SLBs) and Sustainability Linked Loans (SLLs).

Hydrogen production projects:
Two tiers of SLD certification are available for hydrogen production projects, described in Table 13:
Table 13: SLD Tiered Certifications
SLD Tier

Certification Requirements for SLDs related to Hydrogen Production Projects
Hydrogen Production Climate Mitigation Criteria
1.

Tier 1(Aligned)2.

At the time of certification, the average emissions intensity of the hydrogen production facilities to which the
future Performance Targets of the debt are linked and their future Performance Targets for those facilities
continue to align with those declining thresholds through to 2050 (see Section 3.2.1.1, Table 4); andThe Assessed Entity’s Transition Plan provides credible evidence that those future Performance Targets to2050 will be met (see the draft Climate Bonds Standard v4.0 (Part D Section 3 and 4) for detailed
requirements in respect of the Transition Plan other commitments); and78 It is necessary to present a commercial agreement or purchasing policy that includes low-carbon hydrogen emissions intensity as a requirement.

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 36

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

3.

5.

6.

The Assessed Entity provides sufficient external transparency and assurance in respect of these Performance
Targets and Transition Plans (see the draft Climate Bonds Standard v4.0 (Part D Sections 5) for detailed
requirements in respect of disclosure and external assurance); andIf any of the Assessed Entities current of future hydrogen production facilities use alternative feedstocks oralternative fuels, implement electrification or use CCU or CCS, they must meet the respective cross-cutting
criteria in Section 3.1, Table 2.
For any plant becoming operational post certification date, that plant will meet the criteria described in
Section 3.2.1 from day 1 of commencing operation. Details of this to be provided in the company’s transition
plan.

Hydrogen Production Adaptation and Resilience Criteria:
At the time of certification, all of the assessed entity’s facilities meet the adaptation and resilience criteria describedin Section 3.2.2 and that is reassessed and reconfirmed every five years during the term of the bond.
Hydrogen Production
The criteria are the same as for Tier 1, except:

Tier 2The Assessed Entity hydrogen production facilities average emissions intensity does not meet the emissions
intensity threshold at the time of certification, but the future Performance Targets align with those entity-levelemissions thresholds by 2030 and continue to align thereafter through to 2050 (see Section 3.2.1.1, Table 4)(Transition)

Hydrogen delivery projects:
Two tiers of SLD certification are available for hydrogen delivery projects, described in Table 13:
SLD Tier

Certification Requirements for SLDs related to Hydrogen Delivery Projects
Hydrogen Delivery (transportation and storage) Climate Mitigation Criteria••
Tier 1•(Aligned)•

At the time of certification, the hydrogen delivery Assessed Entity demonstrates that the average emissions
intensity of the hydrogen they condition, transport or store meets the 3.0 kgCO2e/kgH2 benchmark in section
3.2.1.1; andThe Assessed Entity provides credible evidence that demonstrate that their future operations will be focused
only on delivering low-carbon hydrogen that meets the 3.0 kgCO2e/kgH2 benchmark in section 3.2.1.1; andThe Assessed Entity provides sufficient external transparency and assurance in respect of these Performance
Targets and Transition Plans (see the draft Climate Bonds Standard v4.0 (Part C Section 5) for detailed
requirements in respect of disclosure and external assurance); andThe Assessed Entities meet the respective criteria in Section 4
Hydrogen Delivery Adaptation and Resilience Criteria:
At the time of certification, all the assessed entity’s segments or business units meet the adaptation and resilience
criteria described in section 4.2 and that is reassessed and reconfirmed every five years during the term of thebond.
Hydrogen Delivery
The criteria are the same as for Tier 1, except in respect of point 1:

Tier 2(Transition)

The Assessed Entity cannot demonstrate that the average emissions intensity of the hydrogen to be transported orstored meets the threshold79 at the time of certification, but the future Performance Targets of the hydrogen
supplier align with those entity-level emissions thresholds by 2030 and continue to align thereafter through to 2050
(see Section 3.2.1.1, Table 4).

Appendix A: TWG and IWG members

79 It is necessary to present a commercial agreement or purchasing policy that includes low-carbon hydrogen emissions intensity as a requirement.

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 37

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

Climate Bonds Coordinator
Marian Rodriguez
Senior Research Analyst

Climate Bonds Initiative

External Technical Lead Advisor:
Emre Gençer
Principal Research Scientist

MIT Energy Initiative

TWG Members
Clarissa Bergman Fonte
Researcher in Energy planningFederal University of Riode Janeiro, BrazilÁlvaro Bobadilla

HINICIO (Chile)

Cédric Philibert
Senior Energy Consultant.

Independent

Maria de los Angeles Valenzuela
Manager Consultant

HINICIO (Chile)

Gabriela Nascimento
da Silva
Hydrogen consultant

KfW (the developmentbank of Germany)

Marta Lovisolo
Advisor on Renewable Energy
Systems

Bellona Europa

Giuseppe Bianchi
Senior Professional in
Innovation and
Decarbonisation

Independent.

Rocky Mountain Institute (RMI)

Former IEA analyst

Patrick Molloy
Manager Breakthrough Technologie

Gniewomir Flis
Associate, Senior Advisor
Hydrogen

Energy Revolution
Ventures

Rachel Fakhry
Green Hydrogen Sector Lead

Climate Champions. Race to zero
UNFCCCJoe Powell
Director Energy Transition
Institute

University of Houston

Zainab Datti
Technical Advisor

Deutsche Gesellschaft fürInternationale Zusammenarbeit (GIZ)GmbH

Zaffar Hussain
Project Lead PtX Africa

Agora Energiewende

Energy Analyst

Additional experts consulted:
Herib Blanco
Analyst - Hydrogen Energy(Power to X)

International Renewable
Energy Agency (IRENA)

Sarah Torkamani
Environmental and energy
policy expert

Independent

Graeme Sweeney
Chair of the Advisory Council

European Technology
Platform of Zero Emission

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 38

Climate Bonds Initiative - Hydrogen Criteria Document
Published for certification

IWG Members
CWP Global

Institutional Investors Group on Climate Change (IIGCC)

Bureau Veritas

JCRA (Japan Credit Rating Agency)

Carbon Trust

Kawasaki Heavy Industries

China Hydrogen Alliance

Mizuho International

Eletrobras

NSW | Point Advisory an ERM Group Company

Hydrogen Brazil

Rubicola Consulting

Hydrogen Europe

Snam

IFA (International Fertilisers Association)

Socalgas

IHI Corporation

Sustainalytics

Hydrogen Criteria- Climate Bonds Initiative

P a g e | 39