The Climate Bonds
expanded Standard andCertification Scheme
A NEW GENERATION OF CREDIBILITY IN LABELLED DEBTSHOW YOURCREDIBILITY WITH
CLIMATE BONDSCERTIFICATIONThe Climate Bonds Standard and Certification Scheme is a voluntarylabelling scheme for investments that address the challenge ofclimate change, and are consistent with the goal of limiting global
temperature rise to 1.5°C above pre-industrial levels.
Launched in 2012, the Standard was initially designed as a mechanism to supportconfidence in the climate change action credentials of green bonds and otherdebt instruments and to provide a tool to allow quick investment decision making.
Climate Bonds have Certified over USD270bn of Use of Proceeds Green Bonds since
the launch of the Certification Scheme. The latest Standard expands Certification
coverage to general purpose Assets and Entities and Sustainability-linked debtinstruments.
Certification under this Standard confirms that debt instruments, assets, orentities meet criteria published under the Climate Bonds Standard. Transparently
developed science-based criteria underpin the Scheme and independentassessment is provided by a network of Climate Bonds Approved Verifiers.
An international independent Climate Bonds Standard Board, comprised ofinstitutional investor representatives and reporting to the Trustees of the ClimateBonds Initiative, provides oversight and a strong governance framework for theScheme.

Climate Bonds Standard and Certification Scheme | Page 2

OUR LABELSCLARITY ON THE CREDIBILITY OF COMPANY TRANSITION PLANS
Our expanded Standard and Certification Scheme
offers two levels of Certification:
LEVEL 1

Aligned: The Climate Mitigation Performance
Targets align with the Sector Criteria at thetime of Certification and thereafter until thedate the Climate Mitigation Performance
Targets represent net zero emissions or 2050,
whichever is sooner.

LEVEL 2
Transition: The Climate Mitigation Performance
Targets do not align with the Sector Criteria at thetime of Certification but align by 31st December
2030 and thereafter until the date the Climate
Mitigation Performance Targets represent net zeroemissions or 2050, whichever is sooner.
Company Z

Transition

Greenhouse Gas Emissions

Company Y

Company X

1.5˚C pathway for sector

AlignedTime2030

Climate Bonds Standard and Certification Scheme | Page 3

Certification confirms alignment with theICMA Green Bond Principles.
The Certification label is an endorsementof the green credentials of theassets/entities and debt instruments,
and the ambition and credibility ofcorporate transition plans.

Benefits ofCertification

The scienced-based eligibility criteria
are developed through a rigorous
process, demonstrating credibility androbustness.
Certification increases visibility
to investors.
A globally recognised symbol of bestpractice in green finance.

Clearly demonstrates to the market
that the Certified instruments meet thehighest standards for climate integrity.
Enhanced reputation benefits for Issuers,
Companies or Asset owners.

Climate Bonds Standard and Certification Scheme | Page 4

Our Standard
Gold-standard labelling that aims to drive the global financial markets towards
investments consistent with the goal of the Paris Climate Agreement.

Ambitious••

Ambition is defined from a sectoral perspective by the Climate Bonds Eligibility criteria.
Performance 1.5 degree aligned, or on a pathway to alignment.

Transparent•

Requirements on disclosure of Certified instruments/entities.

Assured•External verification by a Climate Bonds Approved Verifier – before Certification andwhere required by the Standard for maintaining Certification.

Science-based•Future targets are benchmarked against science-based, technologically feasible
pathways, and not against peers.

Climate Bonds Standard and Certification Scheme | Page 5

Get
Certified

Under our expanded Certification Scheme we are now able to certify:

1
2
3

Use of Proceeds (UoPs) debt instruments: The proceeds of such instruments areallocated to specific projects, assets, activities, or expenditures which align with theClimate Bonds Sector Specific Criteria.
Assets: Certification of the environmental credentials of specific debt instruments, assets, or aportfolio of assets, in accordance with the Climate Bonds Sector Specific Criteria.
Non-financial corporate entities: This Certification is available to legal Entities that provide nonfinancial goods and services, including:••

4Entities with ambitious Performance Targets, that are aligned with the Climate Bonds Sector
Criteria at the time of Certification or that will do so by 2030, which have credible transition
plans and meet the disclosure requirements of the Standard.
General-purpose debt instruments issued by Certified Entities that meet above requirements.

Sustainability-linked debt instruments (SLDs): These are general-purpose debt instruments, thefinancial or structural characteristics of which can vary depending on whether the issuer achieves
predefined Performance Targets. Issuers of Certified SLDs are subject to the same requirements asfor Certified Entities.

Climate Bonds Standard and Certification Scheme | Page 6

The basic pillars for all types of certifications under the Standard are a standardised rule set of sector
level eligibility of projects, transparency, and external review by a Climate Bonds Approved Verifier.
Climate Bonds will be expanding the range of available sectors for all the certification types.
The following Sector Criteria are currently eligible for Certification:

Climate Bonds Certification
CRITERIA
STATUS

Certification
available

Certification for part ofthe sector onlyCertification
pending 2023

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LAND USE & MARINE RESOURCES

Solar

Crop production

WindLivestock production

Geothermal

Commodity supply chains

HydropowerCommercial forestry

Marine renewables

Ecosystem conservation & restoration

Electricity grids & storage

INDUSTRY

Mixed energy (utilities)

Cement production

Bioenergy

Steel production

Nuclear

Basic chemicals production

TRANSPORT

Specialist & intermediate chemicals

Public passenger transport

Hydrogen production, storage & transport

Private transport

Critical raw materials

Freight rail

Carbon capture storage

Water-borne

WASTE

Biofuels for transport

Preparation

Aviation

Reuse

WATER

Recycling

Water monitoring

Biological treatment

Water storage

Waste to energy

Water treatment

Landfill

Water distribution

ICT

Water desalination
Flood defence
Nature-based solutions
BUILDINGS
Residential
Commercial
Products & systems for efficiency
Urban development© 2023 Climate Bonds Initiative 03/2023®

Contact usContact email for Certification Team: certification@climatebonds.net
Detailed requirements for eligible debt instruments, assets or activities can be found on theClimate Bonds website: https://www.climatebonds.net/certification
Download: Climate Bonds Initiative Standard 4.0

Disclaimer: The information contained in this document does not constitute investment advice in any form or any invitation or inducement to engage in investment activity
and the Climate Bonds Initiative is not an investment adviser. Any reference to a financial organisation or debt instrument or investment product is for information purposes
only. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for any content on any external website.
Certification under the Climate Bonds Standard relates exclusively to the conformity of one or more designated debt instruments, designated assets and/or designated entities
with the applicable Climate Bonds Standard at the time of certification. Certification under the Climate Bonds Standard carries no implication (and should not be understoodas carrying any implication) as to any other aspect of any debt instrument or investment product or any collection of debt instruments or investment products or any asset orentity or group of assets or entities or as to continuing conformity at any time after the time of certification. In particular, such certification carries no implication (and should notbe understood as carrying any implication) that any stated target has been or will at any time be met or that any particular legal or regulatory requirement has been or will besatisfied.
The Climate Bonds Initiative is not endorsing, recommending or advising on the financial merits or (subject to the previous paragraph) any other aspect of any debt instrument
or investment product or any collection of debt instruments or investment products or any asset or entity or group of assets or entities and no information within this document
should be taken as such, nor should any information in this document be relied upon in making any investment decision.
A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind, for any investment made by an individual or organisation, nor for
any investment made by third parties on behalf of an individual or organisation, based in whole or in part on any information contained within this, or any other Climate Bonds
Initiative document.
Version 09062023