ELIGIBLE COMMERCIAL
BUILDINGSMEXICO

Mexico City

Low Carbon Buildings Criteria
under the Climate Bonds Standard

They are the technicalstandards that buildings(or a portfolio of buildings)
must satisfy to be eligible as nominated useof proceeds in a Certified Climate Bond. Anybond being certified must also meet thereporting and transparency requirements ofthe overarching Climate Bonds Standard.
This brochure outlines the Buildings
Criteria for commercial buildings in Mexico.
For full details on the methodology andrequirements, see the detailed Criteria
document.
When is a Mexico commercial building
eligible for certification?
It is eligible for certification if it meets thefollowing Climate Bonds requirements:• It meets the low carbon emissions
trajectory OR an approved proxy

Mexico City Trajectory
Commercial buildings are eligible forcertification if the asset‘s emissions
intensity lies below the established hurdle
rate
The trajectory chart (Figure 1) showsthe established low carbon buildings
trajectory for commercial buildings in
Mexico City. Any building is eligible if itmeets the emissions intensity target forthe mid-point of their bond.
For example, for a 10-year bond issued
in Current Year, the emissions intensity
at the time of issuance for a building in
Mexico City must be at or below 24.05kg/
CO2e.

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

pathway down to zero carbon in 2050. They
are location specific to reflect a number offactors which vary significantly by region.
Proxies use differing techniques to measure
the correlation between an established codeot rating scheme and it ability to produce
emissions reductions in-line with the Criteria& rapid decarbonisation.
Where can issuers go to find more
information to check compliance?
The trajectory for Mexico is illustrated inthe box below. More information aboutcompliance for Mexico can be found on theLow Carbon Building’s Commercial Criteria
page.
Want more information?

How have trajectories and proxies been
established?

Contact standards@ClimateBonds.net
regarding the Low Carbon Building Criteria;

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

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

Figure 1. Low carbon trajectory for Mexico City
28.50
24.05

Emissions Intensity (kg CO2 e/ m2)

What are the Low Carbon
Buildings Criteria?

10 yr
19.59

20 yr
15.14

2018

2023

2028

2033

30 yr

2050

Note: Examples have been included for three different bond tenors, 10 yr, 20 yr, and 30 yr
showing how the desired tenor of the issuer effects the emissions intensity target of the bond.

1How is an emissions
performance trajectory
established?
Steps for developing a trajectory
Each trajectory uses the same approach,making global reporting more harmonised,allowing issuers and investors to compare
across markets. The following steps
highlight the fundamentals.

Trajectories are established for specificbuilding types (offices, hotels, shoppingcenters) on a city/region or country
basis where data is available.

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

15%
CO 2
CO 2
0 CO 2The start of the trajectory is the top
15% most emission efficient buildings
in a city given as the carbon intensity
metric kg CO2/m2.

Trajectories are linear and aim forzero emissions in 2050. This means
emissions performance targets forbond issuers become more demanding
over time.

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

Disclaimer: The information contained in this communication does not constitute investment advice in any form and the Climate Bonds Initiative is not an investment adviser. Any reference to a nancialorganisation or investment product is for information purposes only. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on
external websites. The Climate Bonds Initiative is not endorsing, recommending or advising on the merits or otherwise of any investment or investment product and no information within this communication should be taken as such, nor should any information in this communication be relied upon in making any investment decision. A decision to invest in anything is solely yours. The Climate Bonds
Initiative accepts no liability of any kind, for any investment an individual or organisation makes, nor for any investment made by third parties on behalf of an individual or organisation, based in whole orin part on any information contained within this, or any other Climate Bonds Initiative public communication. © Climate Bonds Initiative June 2018.

Low Carbon Building Criteria: Mexico2