Climate Bonds Initiative
EU Taxonomy Blog | Technical guidance note

1 Comparison for Commercial Buildings
Note: The EU does not differentiate between Residential and Commercial. Climate Bonds tend to cater to building
typologies and has specific criteria set for commercial and residential buildings. The below differentiates between
them and a separate guide has been given to each of these.

1.1

Acquisition and ownership of buildings

The following table provides elements of comparison between the Climate Bonds Buildings criteria and theSubstantial Contribution criterion for Climate Mitigation under “Acquisition and ownership of buildings”, i.e.,
Buying real estate and exercising ownership of that real estate.
EU Taxonomy criteria

Climate Bonds requirement

Comparison

For buildings built before 31 December 2020,
the building has at least an Energy
Performance Certificate (EPC) class A. As analternative, the building is within the top 15%of the national or regional building stock
expressed as operational Primary Energy
Demand (PED) and demonstrated byadequate evidence, which at least compares
the performance of the relevant asset to theperformance of the national or regional stock
built before 31 December 2020 and at leastdistinguishes be-tween residential and nonresidential buildings.

Zero carbon trajectory established for 15%
baselines of regional stock expressed as
Emissions (kgCO2e), or for near zero carbon
electricity grid, as Energy Demand (kWh),demonstrated by annual verification.
Equivalence of emissions (kgCO2e) and
Energy demand against PED requirements
has been demonstrated.

Climate Bonds standard
is more demanding
than the EU Taxonomy.

For buildings built after 31 December 2020,
the building meets the criteria specified in
Section 7.1 of the Annex that are relevant at
the time of the acquisition. (New Buildings
Criteria apply)

Climate Bonds requires same in EU but will
also maintain additional requirements for
operational verification of reporting.

Where the building is a large non-residentialbuilding (with an effective rated output for
heating systems, systems for combined spaceheating and ventilation, air-conditioning
systems or systems for combined airconditioning and ventilation of over 290 kW)
it is efficiently operated through energy
performance monitoring and assessment

Climate Bonds requires annual verification of
performance over the term of a bond.

Climate Bonds criteriaof commercial building
is based on operating
performance, so it is ahigher standard

Higher standard.

Equivalent

Appendix I addresses the comparison of the Climate Bonds Buildings Standard with the Do No Significant Harm toother objectives for climate mitigation of this activity in the EU Taxonomy. demonstrates alignment with theclimate mitigation do no significant harm criteria of the EU Taxonomy.

1.2

Construction of New Buildings

Development of building projects for residential and non-residential buildings by bringing together financial,technical and physical means to realise the building projects for later sale as well as the construction of complete
residential or non-residential buildings, on own account for sale or on a fee or contract basis.
Climate Bonds Initiative has adopted a new set of criteria to align with the EU taxonomy. Previously, CLIMATEBONDS did not distinguish between the new or existing assets when measured against the net zero trajectories.
The new criteria adopted globally by CLIMATE BONDS include requirements that all new buildings use only

EU Taxonomy Blog | Technical guidance note-

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Climate Bonds Initiative
EU Taxonomy Blog | Technical guidance noteelectricity for normal operational energy requirements and that the new buildings provide the necessary
infrastructure to support full future e-mobility. In addition, EU-specific industrial requirements are adopted within
the EU.
The following table provides elements of comparison between the CLIMATE BONDS Buildings Standard and theSubstantial Contribution criterion for Climate Mitigation of the Economic Activity “Construction of New Buildings”.
Taxonomy criteria

CLIMATE BONDS requirement

StatusThe Primary Energy Demand (PED), defining
the energy performance of the building
resulting from the construction, is at least 10% lower than the threshold set for the nearlyzero-energy building (NZEB) requirements innational measures implementing Directive
2010/31/EU of the European Parliament andof the Council. The energy performance iscertified using an as-built Energy
Performance Certificate (EPC)

All-electric building with all necessary
infrastructure for full future e-mobility.

Higher standard.

For buildings larger than 5,000 m2 (292),
upon completion, the building resulting fromthe construction undergoes testing for
airtightness and thermal integrity, and any
deviation in the levels of performance set atthe design stage or defects in the building
envelope are disclosed to investors andclients. As an alternative, where robust andtraceable quality control processes are inplace during the construction process this is
acceptable as an alternative to thermal
integrity testing.

Annual verification of operating performancefor the duration of the bond.

Higher standard.

For buildings larger than 5,000 m2, the lifecycle Global Warming Potential of thebuilding resulting from the construction has
been calculated for each stage in the life
cycle and is disclosed to investors and clientson demand.

Reporting and disclosure of Module A (cradle
to key) and Module C (end of life) GWP.

EquivalentandAnnual verification of operating performancefor the duration of the bond.
and additionallyIn the EU have a PED that is at least 10%
lower than the national NZEB threshold

Operational emissions already disclosed.

Appendix I addresses comparison with the climate mitigation do no significant harm criteria of the EU Taxonomy
for Construction of New Buildings.

1.3

Renovation of existing buildings

Construction and civil engineering works or preparation thereof.
The economic activities in this category could be associated with several NACE codes, in particular F41 and F43 inaccordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.
An economic activity in this category is a transitional activity as referred to in Article 10(2) of Regulation (EU)2020/852 where it complies with the technical screening criteria set out in this Section.
CLIMATE BONDS has adopted new criteria requiring that any financing to upgrade works must not be used forany plant of equipment powered by fossil fuels.

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The following table provides elements of comparison between the CLIMATE BONDS Buildings Standard and theSubstantial Contribution criterion for Climate Mitigation of the Economic Activity “Renovation of existing
Buildings”.
Taxonomy criteria

CLIMATE BONDS requirement

The building renovation complies withthe applicable requirements for majorrenovations. Alternatively, it leads to a
reduction of primary energy demand(PED) of at least 30%.

Buildings renovation at to achieve an
Emission reduction (kgCO2e) of notless than 30-50%, depending on thetenor of the bond.

StatusHigher standard.

Equivalence of emissions (kgCO2e)and Energy demand against PED
requirements has been
demonstrated, noting the emission
reporting used by CLIMATE BONDS is
also better in line with the EU
Taxonomy objectives than PED

Adaptation of DNSH: Same as New Buildings (Refer to Appendix I)

2 Residential Buildings
2.1

Acquisition and ownership of buildings

The following table provides elements of comparison between the CLIMATE BONDS Buildings Standard and theSubstantial Contribution criterion for Climate Mitigation of the Economic Activity “Acquisition and ownership ofbuildings”. Buying real estate and exercising ownership of that real estate.
The economic activities in this category could be associated with NACE code L68 in accordance with the statisticalclassification of economic activities established by Regulation (EC) No 1893/2006
The following table provides elements of comparison between the CLIMATE BONDS Buildings Standard and theSubstantial Contribution criterion for Climate Mitigation of the Economic Activity “Acquisition and ownership of
Buildings.”
EU Taxonomy criteria

CLIMATE BONDS requirement

For buildings built before 31 December
2020, the building has at least an
Energy Performance Certificate (EPC)
class A. As an alternative, the building
is within the top 15% of the national orregional building stock expressed as
operational Primary Energy Demand(PED) and demonstrated by adequate
evidence, which at least compares theperformance of the relevant asset tothe performance of the national orregional stock built before 31
December 2020 and at leastdistinguishes be-tween residential andnon-residential buildings.

Proxy qualification based on a baselineof top 15% of market and zero carbon
trajectory of incremental increases inrequirements.

For buildings built after 31 December
2020, the building meets the criteria
specified in Section 7.1 of the Annex

CLIMATE BONDS requires the same in
the EUEU Taxonomy Blog | Technical guidance note-

Proxies are EPCs of region or building
codes (such as NZEB) where sufficientstringency is demonstrated.

Status

CLIMATE BONDS has established
Energy Performance Certificate that
falls under top 15% best performing ina particular location.
Class A EPC available rest of EU

Fallback position of class A EPC
qualification adopted in markets
where CLIMATE BONDS has not beenable to define a proxy based on proper
profiling of the market
Equivalent

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EU Taxonomy Blog | Technical guidance note

EU Taxonomy criteria

CLIMATE BONDS requirement

Statusthat are relevant at the time of theacquisition. (New Buildings Criteria
apply)

Appendix I addresses comparison with the climate mitigation do no significant harm criteria of the EU Taxonomy.

2.2

Construction of New Buildings

CLIMATE BONDS has adopted a new set of criteria to be better in line with the EU taxonomy. Previously, CLIMATEBONDS did not distinguish between the new or existing assets when measured against the net zero trajectories.
The new criteria adopted globally by CLIMATE BONDS include requirements that all new buildings are now Netzero or Net-zero ready by 2050 and use only electricity for normal operational energy requirements and that the
new buildings provide the necessary infrastructure to support full future e-mobility. In addition, EU-specificrequirements are adopted within the EU.
Development of building projects for residential and non-residential buildings by bringing together financial,technical and physical means to realise the building projects for later sale as well as the construction of complete
residential or non-residential buildings, on own account for sale or on a fee or contract basis.
The economic activities in this category could be associated with several NACE codes, in particular F41.1 andF41.2, including also activities under F43, in accordance with the statistical classification of economic activities
established by Regulation (EC) No 1893/2006.
The following table provides elements of comparison between the CLIMATE BONDS Buildings Standard and theSubstantial Contribution criterion for Climate Mitigation of the Economic Activity “Construction of New Buildings.”
Taxonomy criteria

CLIMATE BONDS requirement

The Primary Energy Demand (PED),
defining the energy performance ofthe building resulting from theconstruction, is at least 10 % lower
than the threshold set for the nearlyzero-energy building (NZEB)
requirements in national measures
implementing Directive 2010/31/EUof the European Parliament and of theCouncil. The energy performance iscertified using an as built Energy
Performance Certificate (EPC)

All-electric building with all necessary
infrastructure for full future emobility.

For buildings larger than 5,000 m2(292), upon completion, the building
resulting from the construction
undergoes testing for airtightness andthermal integrity, and any deviation in
the levels of performance set at thedesign stage or defects in the building
envelope are disclosed to investors
and clients. As an alternative, whererobust and traceable quality control
processes are in place during theconstruction process this is acceptable
as an alternative to thermal integrity
testing.

Taxonomy requirements adapted in
the EUEU Taxonomy Blog | Technical guidance note-

StatusHigher standard.

andIn the EU, have a PED that is at least
10% lower than the NZEB threshold(per Taxonomy)

Higher standard.

andAnnual verification of operating
performance for the duration of thebond.

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EU Taxonomy Blog | Technical guidance note

Taxonomy criteria

CLIMATE BONDS requirement

For buildings larger than 5,000 m2, thelife-cycle Global Warming Potential of
the building resulting from theconstruction has been calculated foreach stage in the life cycle and isdisclosed to investors and clients on
demand.

Reporting and disclosure of Module A(cradle to key), Module B (operations)and Module C (end of life) GWP.

StatusAdaptation of DNSH: Same as Commercial New Buildings (Refer to the Appendix I)

2.3

Renovation of existing buildings

Construction and civil engineering works or preparation thereof.
The economic activities in this category could be associated with several NACE codes, in particular F41 and F43 inaccordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.
An economic activity in this category is a transitional activity as referred to in Article 10(2) of Regulation (EU)2020/852 where it complies with the technical screening criteria set out in this Section.
CLIMATE BONDS has adopted new criteria requiring that any financing to upgrade works must not be used forany plant of equipment powered by fossil fuels.
The following table provides elements of comparison between the CLIMATE BONDS Buildings Standard and theSubstantial Contribution criterion for Climate Mitigation of the Economic Activity “Renovation of existing
Buildings.”
EU Taxonomy criteria

CLIMATE BONDS requirement

The building renovation complies withthe applicable local requirements for
major renovations.

Buildings’ renovation is to achieve an
Emission reduction (kgCO2e) of notless than 30-50%, depending on thetenor of the bond.

Alternatively, it leads to a reduction ofprimary energy demand (PED) of atleast 30%.

StatusHigher standard.

CLIMATE BONDS proxies provide that
this can be demonstrated by necessary
incremental improvements to EPC
ratings.
Equivalence of emissions (kgCO2e) and
EnergydemandagainstPED
requirements has been demonstrated,noting the emission reporting used by
CLIMATE BONDS is also better in linewith the EU’s overarching Taxonomy
objectives than PED.

Adaptation of DNSH: Same as Commercial New Buildings (Refer to the Appendix)

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Climate Bonds Initiative
EU Taxonomy Blog | Technical guidance note

3 Appendix I: EU Taxonomy Do no Significant Harm (DNSH) criteria comparison with CLIMATE BONDS lowcarbon Buildings Criteria
The following tables are a snapshot of the EU Taxonomy DNSH requirements and how to achieve compliance with the EU requirements for the economic activities of theConstruction of new buildings (7.1), Renovation of existing buildings (7.2) and Acquisition and ownership of buildings (7.7) according to the best available knowledge anddocumentation.
Note: The EU DSNH criteria mostly refer to EU legislation, so, the comparison below only applies to buildings in the EU or outside building
finances in the EU.

3.1

New Construction:
DNSH criteria in Climate Bonds Initiative - New Building 7.1
DNSH Category

Climate adaptation

Taxonomy criteria

CLIMATE BONDS requirement

The activity complies with the criteria set out in Appendix A for theDelegated Act (Annex 1):• Climate risk and vulnerability assessment in line with Appendix A
requirements.
• Climate Risk Register should include all risks material to the activity
according to Table 1 below.
• The physical risk data for the paths for the RCP 2.6, RCP 4.5, RCP 6.0 and
RCP 8.5 risk scenarios should be provided by a mandated third party. The
assessment is to be provided for future scenarios of 2030 and 2050.
•
The result of the data analysis should be able to prove that there
are no high climate risks in accordance with appendix A

The physical climate risks that are material to the activity have been
identified from those listed in Table 1 below by performing a robust
climate risk and vulnerability assessment following steps as thosereferred in Appendix A from the delegated Act (Annex 1).

Sustainable Use andProtection of Water andMarine Resources

1.

EU Taxonomy Blog | Technical guidance note-

Where installed, except for installations in residential building
units, the specified water use for the following water appliances
are attested by product datasheets, a building certification or an
existing product label in the EU, in accordance with thefollowing technical specifications: a. Wash hand basin taps andkitchen taps have a maximum water flow of 6 litres/min; b.
Showers have a maximum water flow of 8 litres/min; c. WCs,
including suites, bowls and flushing cisterns, have a full flush
volume of a maximum of 6 litres and a maximum average flush• BoQ and Design Specification sheets for the pre-issuance requirements• Verification of the As-built Specification sheets and procurement for the
post-issuance requirements• An Environmental Impact Assessment Report to be prepared that sets
out the requirement for the Contractor to develop a Construction
Environmental Management Plan, which should incorporate a water use
and protection management plan.
o Construction Initiatives and Schemes or Industry Codes wherewater management during all relevant construction phases is part

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EU Taxonomy Blog | Technical guidance note

DNSH criteria in Climate Bonds Initiative - New Building 7.1
DNSH Category

Taxonomy criteria

2.

Transition to a Circular
Economy1.

EU Taxonomy Blog | Technical guidance note-

volume of 3.5 litres; d. Urinals use a maximum of 2
litres/bowl/hour. Flushing urinals have a maximum full flush
volume of 1 litre.
To avoid impact from the construction site, the Case Study
should follow Appendix B requirements of the delegated Act(Annex 1) and identify and address environmental degradation
risks related to preserving water quality and avoiding water
stress with the aim of achieving good water status and good
ecological potential as defined in Article 2, points (22) and (23),of Regulation (EU) 2020/852, in accordance with Directive
2000/60/EC of the European Parliament and of the Council anda water use and protection management plan should be
developed for the potentially affected water body or bodies, inconsultation with relevant stakeholders. Where an
Environmental Impact Assessment is carried out in accordancewith Directive 2011/92/ EU of the European Parliament and of
the Council and includes an assessment of the impact on waterin accordance with Directive 2000/60/EC, no additional
assessment of the impact on water is required, provided therisks identified have been addressed.
At least 70% (by weight) of the non-hazardous construction anddemolition waste (excluding naturally occurring materialreferred to in category 17 05 04 in the European List of Waste
established by Decision 2000/532/EC) generated on theconstruction site is prepared for reuse, recycling and othermaterial recovery, including backfilling operations using waste
to substitute other materials, in accordance with the wastehierarchy and the EU Construction and Demolition Waste
Management Protocol. Operators should limit waste generationin processes related to construction and demolition, in
accordance with the EU Construction and Demolition Waste
Management Protocol and taking into account the best
available techniques and using selective demolition to enable
removal and safe handling of hazardous substances and

CLIMATE BONDS requirementof the scheme (and/or the code) can be used as a suitable proxy for
Appendix B requirements e.g., Considerate Construction Scheme(CCS).

• Site Waste Management Plan (SWMP) following the local/national laws
set in that jurisdiction.
• Life-Cycle Assessment Module D (beyond systems boundary) accounting
and report following the CLIMATE BONDS criteria.
• Disclosure of design specifications to ascertain whether the building
design and construction techniques used, support resource efficiency,
and result in buildings that are adaptable, flexible and dismantlable toenable future reuse and recycling of resourceso Referenced standards (ISO 20887) or other equivalent standards
can be used to prove compliance with the CLIMATE BONDS
standard

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DNSH criteria in Climate Bonds Initiative - New Building 7.1
DNSH Category

Taxonomy criteria

2.

Pollution Prevention andControl

1.

facilitate reuse and high-quality recycling by selective removal
of materials, using available sorting systems for construction
and demolition waste.
Building designs and construction techniques support circularity
and in particular demonstrate, with reference to ISO 20887 orother standards for assessing the disassemblability or
adaptability of buildings, how they are designed to be moreresource efficient, adaptable, flexible and dismantlable toenable reuse and recycling.

Building components and materials used in the constructionthat may come into contact with occupiers(298) emit less than
0,06 mg of formaldehyde per m³ of material or component
upon testing in accordance with the conditions specified in
Annex XVII to Regulation (EC) No 1907/2006 and less than 0,001
mg of other categories 1A and 1B carcinogenic volatile organic
compounds per m³ of material or component, upon testing inaccordance with CEN/EN 16516(299) or ISO 16000-3:2011(300)or other equivalent standardised test conditions anddetermination methods(301).
2. Where the new construction is located on a potentiallycontaminated site (brownfield site), the site has been subject toan investigation for potential contaminants, for example using
standard ISO 18400(302).
3. Measures are taken to reduce noise, dust and pollutant
emissions during construction or maintenance works.
4. The construction of new buildings should follow Appendix C
requirements below and must not lead to the manufacture,
placing on the market or use of:a. Substances, whether on their own, in mixtures or in articles,
listed in Annexes I or II to Regulation (EU) 2019/1021 (Recast
Regulation on Persistent Organic Pollutants), except in thecase of substances present as an unintentional tracecontaminant;

EU Taxonomy Blog | Technical guidance note-

CLIMATE BONDS requirement• Disclosure of the design specifications in order to assess whether the
project meets this criterion.
o Specified materials must meet the relevant EUT criteria, following
the national regulations and hold a proof of their registration to
ECHA central European Authority (e.g. REACH Certificate ofCompliance by third party testing agent, CLP Safety Data Sheets SDS)
• Post-Construction and Pre-Occupancy Air Quality Monitoring andAssessment following the testing and methodology requirements as per
the EUT requirements.
• Preliminary Site Assessment ("PSA") and Detailed Site Assessment ("DSA")
should be prepared to support the assessment of land contamination andare included in the Environmental Impact Assessment Report (if relevant)along with solutions to ensure the site is fit for purpose as well as
proposing measures to protect: the people and the environment
surrounding the site.
• Contractor to develop a Construction Environmental Management Plan,
which should incorporate measures to reduce noise, dust and air
pollutant emissions protection management plan to fulfil the EU
Taxonomy requirement.
o Construction Initiatives and Schemes or Industry Codes where air
quality management and noise impact assessment during all
relevant construction phases are parts of the scheme (and/or the

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DNSH criteria in Climate Bonds Initiative - New Building 7.1
DNSH Category

Protection and
Restoration of
Biodiversity andEcosystems

1.

EU Taxonomy Blog | Technical guidance note-

Taxonomy criteria

CLIMATE BONDS requirementb. Mercury and mercury compounds, their mixtures andmercury-added products as defined in Article 2 of Regulation(EU) 2017/852 (Regulation on Mercury);c. Substances, whether on their own, in mixture or in articles,
listed in Annex I or II to Regulation (EC) No 1005/2009(Regulation on Substances that Deplete the Ozone Layer);d. Substances, whether on their own, in mixtures or in anarticles, listed in Annex II to Directive 2011/65/EU (Recast
Regulation on the restriction of the use of certain hazardous
substances in electrical and electronic equipment), except
where there is full compliance with Article 4(1) of that
Directive; e. Substances, whether on their own, in mixtures orin an article, listed in Annex XVII to Regulation (EC) 1907/2006(Regulation on the registration, evaluation, authorisation andrestriction of chemicals), except where there is full compliancewith the conditions specified in that Annex;e. Substances, whether on their own, in mixtures or in an article,
meeting the criteria laid down in Article 57 of Regulation (EC)1907/2006 (Regulation on the registration, evaluation,authorisation and restriction of chemicals) and identified inaccordance with Article 59(1) of that Regulation, except where
their use has been proven to be essential for the society; andg. Other substances, whether on their own, in mixtures or in
an article, that meet the criteria laid down in Article 57 ofRegulation (EC) 1907/2006 (Regulation on the registration,
evaluation, authorisation and restriction of chemicals), except
where their use has been proven to be essential for thesociety.

code) can be used as suitable proxies for this requirement for
CLIMATE BONDS e.g. Considerate Construction Scheme (CCS).

An Environmental Impact Assessment (EIA) or screening has
been completed in accordance with Directive 2011/92/EU(Directive on the assessment of the effects of certain public andprivate projects on the environment) and the required
mitigation and compensation measures for protecting theenvironment must be implemented.

• Local Authorities to determine if a project is subject to an EIA following
the screening procedures on the basis of thresholds/criteria or on thebasis of case-by-case examination taking into account all relevant criteria
in the referred Directive.

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EU Taxonomy Blog | Technical guidance note

DNSH criteria in Climate Bonds Initiative - New Building 7.1
DNSH Category

Taxonomy criteria

2.

3.

EU Taxonomy Blog | Technical guidance note-

CLIMATE BONDS requirement

For sites/operations located in or near biodiversity-sensitive• Sites located in designated areas under the Habitats Directive, either as
areas (including the Natura 2000 network of protected areas,“Special Area of Conservation - SAC” or “Special Protection Area- “SPA”
UNESCO World Heritage sites and Key Biodiversity Areas, as well
an appropriate assessment and permitting procedure should be followed.
as other protected areas), an appropriate assessment, where• The building permit provided by local planning authorities can be used as
applicable, must be conducted and based on its conclusions theproof of compliance to show that new construction is not built on thenecessary mitigation measures implemented.
land types referred in the EUT relevant requirement (points a, b, and c).
The new construction is not built on one of the following:o This criterion is always met if according to the applicable laws anda. Arable land and crop land with a moderate to high level ofspatial planning regime, a project would be allowed or permitted bysoil fertility and below ground biodiversity as referred to in
the authorities to build on the parcel of land.
the EU Land Use and Coverage Area frame survey;o The required information can also be obtained by LUCAS Survey
b. Greenfield land of recognised high biodiversity value andland that serves as habitat of endangered species (floraand fauna) listed on the European Red List or theInternational Union for Conservation of Nature's Red Listof Threatened Species; orc. Land matching the definition of forest as set out innational law used in the national greenhouse gas
inventory, or where not available, is in accordance with
the Food and Agriculture Organization of the United
Nations definition of forest.

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4 Renovation of Existing Buildings:
DNSH criteria in Climate Bonds Initiative - Retrofit and Refurbishment Building 7.2
DNSH Category

Climateadaptation

Taxonomy criteria

Climate Bonds requirement

The activity complies with the criteria set out in Appendix A for the DelegatedAct (Annex 1):• Climate risk and vulnerability assessment in line with Appendix A
requirements.
• Climate Risk Register should include all risks material to the activity
according to Table 1 below.
• The physical risk data for the paths for the RCP 2.6, RCP 4.5, RCP 6.0 and
RCP 8.5 risk scenarios should be provided by a mandated third party. The
assessment is to be provided for future scenarios of 2030 and 2050
o The result of the data analysis should be able to prove that there areno high climate risks in accordance with appendix A

The physical climate risks that are material to the activity have been identified
from those listed in Table 1 below by performing a robust climate risk andvulnerability assessment following steps as those referred in Appendix A fromthe delegated Act (Annex 1).

Sustainable Useand Protectionof Water andMarineResources

Where installed, except for installations in residential building units, the• BoQ and Design Specification sheets for the pre-issuance requirements
specified water use for the following water appliances are attested by product • Verification of the As-built Specification sheets and procurement for thedatasheets, a building certification or an existing product label in the EU, in
post-issuance requirements
accordance with the following technical specifications: a. Wash hand basin
taps and kitchen taps have a maximum water flow of 6 litres/min; b. Showers
have a maximum water flow of 8 litres/min; c. WCs, including suites, bowls andflushing cisterns, have a full flush volume of a maximum of 6 litres and amaximum average flush volume of 3.5 litres; d. Urinals use a maximum of 2
litres/bowl/hour. Flushing urinals have a maximum full flush volume of 1 litre.

Transition to a
Circular
Economy1.

• Site Waste Management Plan (SWMP) following the local/national laws set
At least 70% (by weight) of the non-hazardous construction andin that jurisdiction.
demolition waste (excluding naturally occurring material referred to in• Life-Cycle Assessment Module D (beyond systems boundary) accounting
category 17 05 04 in the European List of Waste established by Decisionand report following the Climate Bonds criteria.
2000/532/EC) generated on the construction site is prepared for reuse,• Disclosure of design specifications to ascertain whether the building design
recycling and other material recovery, including backfilling operations
and construction techniques used, support resource efficiency, and result
using waste to substitute other materials, in accordance with the waste
in buildings that are adaptable, flexible and dismantlable to enable future
hierarchy and the EU Construction and Demolition Waste Management
reuse and recycling of resources
Protocol. Operators should limit waste generation in processes related toconstruction and demolition, in accordance with the EU Construction and
Demolition Waste Management Protocol and taking into account the best

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DNSH criteria in Climate Bonds Initiative - Retrofit and Refurbishment Building 7.2
DNSH Category

Taxonomy criteria

2.

Pollution
Prevention andControl1.

Climate Bonds requirement

available techniques and using selective demolition to enable removal
and safe handling of hazardous substances and facilitate reuse and highquality recycling by selective removal of materials, using available sorting
systems for construction and demolition waste.
Building designs and construction techniques support circularity and inparticular demonstrate, with reference to ISO 20887 or other standards
for assessing the disassembly or adaptability of buildings, how they aredesigned to be more resource efficient, adaptable, flexible anddismantlable to enable reuse and recycling.
The construction of new buildings should follow Appendix C requirements
below and must not lead to the manufacture, placing on the market or
use of:a. Substances, whether on their own, in mixtures or in articles, listed in
Annexes I or II to Regulation (EU) 2019/1021 (Recast Regulation on
Persistent Organic Pollutants), except in the case of substancespresent as an unintentional trace contaminant;b. Mercury and mercury compounds, their mixtures and mercuryadded products as defined in Article 2 of Regulation (EU) 2017/852(Regulation on Mercury);c. Substances, whether on their own, in mixture or in articles, listed in
Annex I or II to Regulation (EC) No 1005/2009 (Regulation on
Substances that Deplete the Ozone Layer);d. Substances, whether on their own, in mixtures or in an articles,
listed in Annex II to Directive 2011/65/EU (Recast Regulation on the
restriction of the use of certain hazardous substances in electricaland electronic equipment), except where there is full compliancewith Article 4(1) of that Directive; e. Substances, whether on theirown, in mixtures or in an article, listed in Annex XVII to Regulation(EC) 1907/2006 (Regulation on the registration, evaluation,authorisation and restriction of chemicals), except where there is
full compliance with the conditions specified in that Annex;e. Substances, whether on their own, in mixtures or in an article,
meeting the criteria laid down in Article 57 of Regulation (EC)1907/2006 (Regulation on the registration, evaluation, authorisation

EU Taxonomy Blog | Technical guidance note-•

Disclosure of the design specifications in order to assess whether the
project meets this criterion.
o Specified materials must meet the relevant EUT criteria, following
the national regulations and hold a proof of their registration to
ECHA central European Authority (e.g. REACH Certificate ofCompliance by third party testing agent, CLP Safety Data Sheets SDS)
• Post-Construction and Pre-Occupancy Air Quality Monitoring andAssessment following the testing and methodology requirements as per
the EUT requirements.
•• Preliminary Site Assessment ("PSA") and Detailed Site Assessment ("DSA")
have been prepared to support the assessment of land contamination andare included in the Environmental Impact Assessment Report (if relevant)along with solutions to ensure the site is fit for purpose as well as
proposing measures to protect: the people and the environment
surrounding the site.
••
Contractor to develop a Construction Environmental Management
Plan, which should incorporate measures to reduce noise, dust andair pollutant emissions protection management plan to fulfil the EU
Taxonomy requirement.
o Construction Initiatives and Schemes or Industry Codes where air
quality management and noise impact assessment during all
relevant construction phases are parts of the scheme (and/or the

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DNSH criteria in Climate Bonds Initiative - Retrofit and Refurbishment Building 7.2
DNSH Category

Taxonomy criteria

2.

3.

4.

and restriction of chemicals) and identified in accordance with
Article 59(1) of that Regulation, except where their use has been
proven to be essential for the society; and g. Other substances,whether on their own, in mixtures or in an article, that meet thecriteria laid down in Article 57 of Regulation (EC) 1907/2006(Regulation on the registration, evaluation, authorisation andrestriction of chemicals), except where their use has been proven tobe essential for the society.
Building components and materials used in the construction that may
come into contact with occupiers emit less than 0,06 mg of formaldehyde
per m³ of material or component upon testing in accordance with theconditions specified in Annex XVII to Regulation (EC) No 1907/2006(Regulation on the registration, evaluation, authorisation and restrictionof chemicals) and less than 0,001 mg of other categories 1A and 1B
carcinogenic volatile organic compounds per m³ of material orcomponent, upon testing in accordance with CEN/EN 16516 or ISO
16000-3:2011 or other equivalent standardised test conditions anddetermination methods.
Where the new construction is located on a potentially contaminated site(brownfield site), the site has been subject to an investigation forpotential contaminants, for example using standard ISO 18400
Measures are taken to reduce noise, dust and pollutant emissions during
construction or maintenance works

Protection and
Restoration of
Biodiversity andEcosystems

EU Taxonomy Blog | Technical guidance note-

Climate Bonds requirementcode) can be used as suitable proxies for this requirement e.g.
Considerate Construction Scheme (CCS).

n/a

n/a

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5 Acquisition and ownership of buildings:
DNSH criteria in Climate Bonds Initiative - building Acquisition 7.7
DNSH Category

Climate adaptation

Taxonomy criteria

Climate Bonds requirement

The activity complies with the criteria set out inAppendix A for the Delegated Act (Annex 1):• Climate risk and vulnerability
assessment in line with Appendix A
requirements.
• Climate Risk Register should include allrisks material to the activity according toTable 1 below.
• The physical risk data for the paths for
the RCP 2.6, RCP 4.5, RCP 6.0 and RCP
8.5 risk scenarios should be provided bya mandated third party. The assessment
is to be provided for future scenarios of2030 and 2050
o The result of the data analysis
should be able to prove that
there are no high climate risks
in accordance with appendix A

The physical climate risks that are material to theactivity have been identified from those listed inTable 1 below by performing a robust climate risk
and vulnerability assessment following steps as
those referred in Appendix A from the delegatedAct (Annex 1).

Sustainable Use andProtection of Water
and Marine Resources

n/a

n/a

Transition to a
Circular Economy

n/a

n/a

Pollution Prevention
and Control

n/a

n/a

n/a

n/a

Protection and
Restoration of
Biodiversity andEcosystems

Table 1. DNSH to Climate change adaptation

Temperature Related
Changing temperature (air, freshwater,
marine water)

C
h
r
o
n
i
c

Wind Related
Changing wind
patterns

Water Related

Solid Mass Related

Changing
precipitation
patterns and types(rain, hail, snow/ice)

Coastal erosion

Heat stress

Precipitation orhydrologicalvariability

Soil degradation

Temperature variability

Ocean acidification

Soil erosion

Permafrost thawing

Saline intrusion

Solifluction

Sea level rise
Water stressAcHeat wave

EU Taxonomy Blog | Technical guidance note-

Cyclone, hurricane,
typhoonDrought

Avalanche

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Climate Bonds Initiative
EU Taxonomy Blog | Technical guidance noteuteCold wave/frost

Storm (including
blizzards, dust andsandstorms)

Heavy precipitation(rain, hail, snow/ice)

Landslide

Wildfire

TornadoFlood (coastal,
fluvial, pluvial,
ground water)

Subsidence

Glacial lake outburst

5.1

DNSH Checklist linked document required:

1. Climate risk and vulnerability assessment 1
2. Climate Risk Register 2
3. BoQ and Design Specification sheets
4. As-built Specification
5. Environmental Impact Assessment Report 3
6. Post-Construction and Pre-Occupancy Air Quality Monitoring and Assessment
7. Preliminary Site Assessment ("PSA") and Detailed Site Assessment ("DSA")
8. Site Waste Management Plan (SWMP)
9. Life-Cycle Assessment Module D (Circular economy)
10. ISO/DIS 59004 - Terminology, principles and guidance for implementation 4
11. Construction Environmental Management Plan
12. Special Area of Conservation - SAC or Special Protection Area - SPA Assessment
13. Local Authority Building Permit

1 www.eea.europa.eu/publications/national-climate-change-vulnerability-2018
2 European Climate Risk Assessment (europa.eu)
3 Environmental assessments (europa.eu)
4 www.iso.org/standard/80648.html

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6 EU Taxonomy and Climate Bonds activity alignment
DNSH criteria in Climate Bonds Initiative - building Acquisition 7.7
Sector Asset Type(Climate Bonds)

Commercial Buildings

Commercial Buildings

Residential Buildings

Residential Buildings

Other buildings type

Sector EU Taxonomy(activity)

•

•

•

•

•

Asset specifics(Climate Bonds)•

Including offices, hotels, retailbuildings, public buildings,
educational and health care, etc.

AlignedIncluding offices, hotels, retailbuildings, public buildings,
educational and health care, etc.

Aligned•••Private dwellings
Multifamily residential Buildings
Mixed use where more than 50%of the asset is for residential
purposes.

AlignedConstruction and real estate
activities - Renovation ofexisting Buildings•••

Private dwellings
Multifamily residential Buildings
Mixed use where more than 50%of the asset is for residential
purposes.

AlignedConstruction and real estate
activities - New Buildings••

Data centres
Stations and related buildings for
eligible transport
Industrial buildings

AlignedData centres
Stations and related buildings for
eligible transport
Industrial buildings

AlignedConstruction and real estate
activities - New Buildings
Construction and real estate
activities - Renovation ofexisting Buildings
Construction and real estate
activities - New Buildings••
Other buildings type

Other buildings type••

Commercial and
Residential Buildings•

Built environment Urban or semi-urban
areas

•

Infrastructure•

Infrastructure

Products and Systems
for Building Efficiency(energy)••

Climate Bonds : EUalignment

Information andcommunication - Data
processing, hosting andrelated activities
Construction and real estate
activities - Installation,
maintenance and repair ofcharging stations for electricvehicles in buildings andparking spaces attached tobuildings
Construction and real estate
activities - Acquisition andownership of buildings
Construction and real estate
activities - Installation,
maintenance and repair ofenergy efficiency equipment
Construction and real estate
activities - - Installation,
maintenance and repair ofrenewable energy equipment
Energy - district
heating/cooling distribution

Manufacturing - Of Energy
efficiency equipment forbuildings

EU Taxonomy Blog | Technical guidance note-

•
•
•
•
•
•

•

•

•
•

•
•

•

Data centres
Stations and related buildings for
eligible transport
Industrial buildings

Partially Aligned

Commercial and residentialbuildings

AlignedSuch as neighbourhood level
works, upgrades and retrofits suchas street lighting.

AlignedDistrict heating for residential andcommercial applications
Building, maintenance or
upgrading utilities tunnel forcables or pipelines

AlignedDistrict heating for residential andcommercial applications
Building, maintenance or
upgrading utilities tunnel forcables or pipelines

AlignedFacilities dedicated to
manufacturing energy efficientcomponents

Partially Aligned

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DNSH criteria in Climate Bonds Initiative - building Acquisition 7.7
Sector Asset Type(Climate Bonds)

Sector EU Taxonomy(activity)

Products and Systems
for Building Efficiency(Low carbon building
materials)

•

n/a

•

Urban Planning•

Manufacturing - Manufactureof Cement

Construction and real estate
activities

n/a

EU Taxonomy Blog | Technical guidance note-

•

•

•

Asset specifics(Climate Bonds)

Climate Bonds : EUalignment

Low carbon alternative building
materials such as alternatives tocement and concrete/steel

AlignedInstallation, maintenance andrepair of instruments and devices
for measuring, regulation andcontrolling energy performance ofbuildings
Urban Policies and regulations
directed to climate change
mitigation. E.g., car-free areas

Not covered in Climate
Bonds Taxonomy

Not covered in EU
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