Climate Bonds Taxonomy
SEPTEMBER 2021

Introduction
Institutional investors are increasingly indicating theirsupport for action to address climate change. However,there are too few tools to help ensure that theirinvestments are in credible, robust activities and aremaking a significant impact, particularly for debt based
investments. The market needs independent, sciencedriven guidance on which assets and activities are
consistent with a rapid transition to a low-carbon economy.
The Climate Bonds Taxonomy identifies the assets,
activities and projects needed to deliver a low carbon
economy. Consistent with the 2 goals of the Paris
Agreement. It has been developed based on thelatest climate science including research from theIntergovernmental Panel on Climate Change (IPCC)
and the International Energy Agency (IEA), and has
benefited from the input of hundreds of technicalexperts from around the world. It can be used by any
entity looking to identify which assets and activities,
and associated financial instruments, are compatible
with a trajectory to net zero by 2050.
First released in 2013, the Climate Bonds Taxonomy isregularly updated based on the latest climate science,
emergence of new technologies and sector specific Criteria.

Contents

Energy2

Transport

8

Water

11

Buildings

12Land use & marine
resources

13

Industry

15

Waste & pollution control 16
ICT

17

Using this document
A traffic light system has been adopted to indicate whether identified assets
and projects are considered to be automatically compatible with a 1.5˚C
degree decarbonisation trajectory. Green Light is automatically compatible.
Orange Light is potentially compatible, depending on whether more specificcriteria are met. Red Light is incompatible. A Grey circle is used to indicate
where further work is required to determine which traffic light colour isappropriate for a specific sub-set of assets or activities.

Automatically compatible

The Taxonomy is the foundation used by the Climate Bonds Initiative
to screen bonds to determine whether assets or projects underlying an
investment are eligible for green or climate finance. Where detailed analysis
of a sector has been undertaken and specific eligibility Criteria have beendeveloped, bonds in that sector can be Climate Bonds Certified. This isindicated via a blue ‘Climate Bonds Certification tick’. Where detailed sector
based Criteria for Certification are still under development, this is indicatedby a yellow circle. In this case, bonds in this sector cannot yet be certified
under the Climate Bonds Standard.

Certification Criteria
Approved

Climate Bonds Initiative Taxonomy

Compatible if compliant
with screening indicator
Not compatible
More work required

Criteria under development

1Energy
ELECTRICITY & HEAT PRODUCTION

SOLAR

Asset type

Asset specifics

Generation
facilities(power &heat)

Photovoltaic generation facilities(onshore)

Supply chain
facilities

Manufacturing facilities wholly
dedicated to onshore solar
energy development such as PV
cells & components, CSP dishes,
troughs & components etc

Concentrated solar power
facilities (onshore)

Paris
Agreementcompliant

Screening indicator

Certifiable

Facilities shall have no morethan 15% of electricity
generated from nonrenewable sources

Dedicated storage, distribution,
installation, wholesale and retail
Infrastructure

Dedicated transmission
infrastructure
Dedicated supporting
infrastructure including inverters,
transformers, energy storage
systems and control systems

WIND

Generation
facilities(power &heat)

Onshore wind farms

Supply chain
facilities

Manufacturing facilities wholly
dedicated to onshore wind energy
development such as wind turbines
Dedicated storage, distribution,
installation, wholesale and retail

Infrastructure

Dedicated transmission
infrastructure
Dedicated supporting
infrastructure

GEOTHERMAL

Generation
facilities(power &heat)

Electricity generation facilities

Supply chain
facilities

Manufacturing facilities wholly
dedicated to geothermalenergy developments such as
geothermal turbines

Direct emissions less than
100gCO2/kWh

Direct heat application such as
Geothermal Heat Pump (GHP)

Dedicated storage, distribution,
installation, wholesale and retail
Infrastructure

Dedicated transmission
infrastructure
Dedicated supporting
infrastructure

Energy continues on page 3 ………>Climate Bonds Initiative Taxonomy: Energy

2Energy
ELECTRICITY & HEAT PRODUCTION

BIO-ENERGY

Asset type

Asset specifics

Facilities
producing
biofuel,biomass,
biogasincluding fuelpreparation
process
facilities,
pretreatment
facilities andbiorefinery
facilities(if ≥50%
biomass
based
products
produced forenergy use)

Facilities producing liquidbiofuel, solid and gaseous
biomass for heating andcogeneration

Generation
facilities(power, heat& cooling)

Electricity generation facilities
such as biomass power station

Facilities producing liquidbiofuel, solid and gaseous
biomass for electricity
production

Paris
Agreementcompliant

Screening indicator

Certifiable(i) 80% GHG emission
reduction compared to fossil
fuel baselineAND(ii) Biofuel must be sourced
from a sustainable feedstock(the only timber feedstockallowed is waste wood)

Facilities producing biofuel fortransport(i) Emissions of electricity
generated must be lower than
100gCO2 /kWhAND(ii) Biofuel must be sourced
from a sustainable feedstock(the only timber feedstockallowed is waste wood)

Heating facilities
Cooling facilities
Combined Heat & Powerfacilities(ii) Emissions of biomass or
biofuel used must be 80%
lower than fossil fuel baseline
and the energy efficiency
achieved must be at least80%AND(ii) Biofuel must be sourced
from a sustainable feedstock(the only timber feedstockallowed is waste wood)

Supply chain
facilities

Manufacturing facilities
wholly dedicated to bioenergy
development
Dedicated storage, distribution,
installation and wholesale andretailBlending facilities

Infrastructure

Dedicated transmission
infrastructure
Dedicated supporting
infrastructure

Energy continues on page 4 ………>Climate Bonds Initiative Taxonomy: Energy

3Energy
ELECTRICITY & HEAT PRODUCTION

HYDROPOWER

Asset type

Asset specifics

Generation
facilities

Run of river
Impoundment
Pumped storage

Paris
Agreementcompliant

Screening indicator

Certifiable

In operation before 2020 power
density > 5W/m2; or GHG
emissions intensity of electricity
generated < 100gCO2e/kWh.
Commencing operation in2020 or after: power density>10W/m2; or GHG emissions
intensity <50g CO2e/kWhAND
Must perform an assessment,
based on recognised bestpractice guidelines, ofenvironmental and social
risks and incorporate
measures to address risks
Only for pumped storage:
facility will not be charged withcarbon intensive energy OR
facility is contributing to a grid
which has at least 20% shareof intermittent renewables

Supply chain
facilities

Manufacturing facilities wholly
dedicated to hydropower development such as hydro turbinesand components
Dedicated storage, distribution,
installation and wholesale and retail

Infrastructure

Dedicated transmission
infrastructure
Dedicated supporting
infrastructure

MARINERENEWABLES

Generation
facilities(power, heat& cooling)

Offshore wind farms
Offshore solar farms
Tidal and wave energy
generation facilities

Fossil fuel back up can only
be used for restart capability
and monitoring, operatingor resilience measures inthe event of no power in thesystemOther marine electricity
generation facilities using ocean
thermals, salinity, gradients, etc
Heating or cooling facilities using
ocean thermals

Supply chain
facilities

Must achieve an 80%
reduction in gCO2e/kWhcompared to fossil fuelalternative

Manufacturing facilities wholly
dedicated to marine renewableenergy development such as windturbines and platforms, verticaland horizontal axis turbines, instream generators, etc
Dedicated storage, distribution,
installation and wholesale and retail

Energy continues on page 5 ………>Climate Bonds Initiative Taxonomy: Energy

4Energy
ELECTRICITY & HEAT PRODUCTION

MARINERENEWABLES

Asset type

Asset specifics

Infrastructure

Dedicated transmission
infrastructure

Paris
Agreementcompliant

Screening indicator

Certifiable

Dedicated supporting
facilities, such as transmission
terminus and transformers,
grid connections, dedicatedfacilities for supporting vessels,
equipment storage and onshore
assembly
FOSSIL FUELS

Generation
facilities

Coal or oil power without carbon
capture and storage (CCS)
Coal or oil with carbon capture &storage (CCS)

CCS must capture 100% of
GHG emissions

Coal or oil powered combine
heat and power (CHP)
Waste heat recovery from coalor oil fuelled power generation
Gas power without carbon
capture & storage (CCS)
Gas power with carbon capture& storage (CCS)
Gas powered combine heat andpower (CHP)
Waste heat recovery from gas
fuelled power generation
Mining andextraction

Coal mining or oil extraction,refining, processing or
production and associatedsupply chain infrastructure
Gas extraction, refining,processing or production
and associated supply chain
infrastructure

NUCLEAROTHER

Generation
facilities

Power plants

Miningfacilities

Uranium mining

Generation
facilities(heat)Heat pumps using soil or air
gradients

Advancedalternativefuel power
plantsAlternative fuel power plants

Dedicated supporting
infrastructure

Supporting infrastructure

Energy continues on page 6 ………>Climate Bonds Initiative Taxonomy: Energy

5EnergyTransmission, distribution & storage

TRANSMISSION&
DISTRIBUTION

Asset type

Asset specifics

Paris
Agreementcompliant

Screening indicator

Infrastructure

Construction, upgrading or
operation of:• Overhead lines (conductors
and insulators) and pylons• Transformers, reactors andsubstations• Underground cables• Circuit breakers andswitchgear• Sub-stations, buildings, fences
and busbars• Fuses, circuit breakers,
disconnectors, reactors,
capacitors, transformers,
voltage regulators andswitchgear

a. Is a dedicated connection
to a power production planteligible under one of the
Climate Bonds sector criteria(e.g. Solar)b. Is a dedicated connection
to a power production
plant operating under
the low carbon power
threshold (100g CO2/kWh)c. The infrastructure islocated on a system with agrid factor at or below 100g
CO2/kWhd. The infrastructure islocated on a system forwhich at least 67% of its
added generation capacity
in the last 5 years falls
below the low carbon power
thresholdInterconnectors between
transmission systems

One of the two systems is ona pathway to decarbonisation
as defined above c. and d.

Installation of T&D transformers

Correspond to or comply
with the Tier 2 (2021)
requirements from EU
Regulation 548/2014 on theeco-design of small, medium
and large power transformers and, for medium powertransformers with highest
voltage for equipment
not exceeding 36 kV, with
AAA0 level requirements
on no-load losses set out instandard EN 50588- 1, or
equivalent

Certifiable

Equipment and infrastructure
where the main objective isan increase of the generationor use of renewable electricity
generation
Equipment to increase thecontrollability and observabilityof the electricity system andenable the development andintegration of renewable energy
sources. This includes:
Sensors and measurement
tools (including meteorologicalsensors for forecasting
renewable production)
Energy continues on page 7 ………>Climate Bonds Initiative Taxonomy: Energy

6EnergyTransmission, distribution & storage
Asset type

Asset specifics

Paris
Agreementcompliant

Screening indicator

Certifiable

Communication and control(including advanced softwareand control rooms, automationof substations or feeders, andvoltage control capabilities toadapt to more decentralised
renewable infeed)
Equipment to carry information
to users for remotely acting on
consumption
Equipment to allow for
exchange of renewableelectricity between users
STORAGE

Infrastructure

Batteries, capacitors,
compressed air storage andflywheels
Large scale energy storage
facilities

a. Is a dedicated connection
to a power production planteligible under one of the
Climate Bonds sector criteria(e.g. Solar)b. Is a dedicated connection
to a power production plant
operating under the low carbon power threshold (100gCO2/kWh)c. The infrastructure islocated on a system with agrid factor at or below 100g
CO2/kWhd. The infrastructure is located on a system for which
at least 67% of its added
generation capacity in thelast 5 years falls below the
low carbon power threshold

Manufacture facilities dedicatedto any of the above

Climate Bonds Initiative Taxonomy: Energy7Transport
Passenger, freight & supporting infrastructure

PRIVATEPASSENGER
TRANSPORT

Asset type

Asset specifics

VehiclesElectric passenger & freightvehiclesParis
Agreementcompliant

Screening indicator

Certifiable

Hydrogen passenger & freightvehiclesOther passenger vehicles, e.g.
hybrid vehicles
Supply chain
facilities

Dedicated manufacturing
facilities for vehicles and key
components, such as batteries,
being used in eligible vehicles

Infrastructure

Dedicated charging andalternative fuel infrastructure(when separate from fossil fuelfilling stations and garages)

Vehicle meets universal
gCO2/p-km (passenger per
kilometre) threshold

New roads, road bridges, roadupgrades, parking facilities, fossil
fuel filling stations, etc
PUBLICPASSENGER
TRANSPORT

TrainsRolling stock and vehicles forelectrified public transport,such as electrified rail, trams,
trolleybuses and cable cars
Fossil fuel or hybrid vehicles orrolling stock

Passenger transport systemmeets universal gCO2/p-km(passenger-kilometre) threshold

Biofuel vehicles
Buses

Buses with no direct emissions(electric or hydrogen)
Fossil fuel or hybrid vehicles

Vehicle meets universal
gCO2/p-km (passengerkilometre) threshold

Biofuel vehicles
Supply chain
facilities

Dedicated manufacturing facilities
for rolling stock, buses or key
components such as batteries,
being used in eligible vehicles

Infrastructure

Dedicated infrastructure forelectrified public transport
Dedicated product or supporting
infrastructure for fossil fuel or
hybrid vehicles or rolling stock

Eligible if the transport mode
supported is eligible
according to one of the above

Dedicated charging andalternative fuel infrastructure(when separate from fossil fuelfilling stations and garages)
Passenger
cars andcommercial
vehiclesBiofuel vehicles

Transport continues on page 9 ………>Climate Bonds Initiative Taxonomy: Transport8Transport
Passenger, freight & supporting infrastructure
Asset type

Asset specifics

PUBLICPASSENGER
TRANSPORT

Infrastructure

Public walking and cycling
infrastructure and cycling schemes

ROAD
FREIGHT

Lorries andtrucksParis
Agreementcompliant

Screening indicator

Certifiable

Bus rapid transit systems
Vehicles with no direct emissions(electric or hydrogen)
All other types of lorries or trucks(e.g. biofuel-powered or hybrid
trucks)FREIGHT
RAIL

TrainsRolling stock for electrified freightrail

Fossil fuel freight must not be
more than 25% of the freighttransported (in tonne/km)

Rolling stock for non-electrified
freight rail(i) Fossil fuel freight mustnot be more than 25% of thefreight transported (in tonne/km)(ii) Transport meets universal
gCO2/t-km (tonne-kilometre)thresholdInfrastructureCROSS
CUTTINGAll infrastructure for electrified
freight rail
All infrastructure for nonelectrified freight rail

Eligible if the associated rail iseligible

ICT that improves asset utilisation,
flow and modal shift, regardless oftransport mode (public transport
information, car-sharing schemes,
smart cards, road charging
systems, etc)

Must deliver substantial GHG
emissions savings on eithera passenger/km or a tonne/
km basisIntermodal freight facilities
Terminals to improve journey times
Smart freight logistics
Multi-modal logistics hubs
Integration of transport andurban development planning
AVIATION

AircraftPassenger aircraft

Cargo aircraft

Infrastructure

Use of low GHG fuel (e.g.
solar, electric, high % of biofuel), delivering substantial
reduction in gCO2e/passenger or tonne/km

Dedicated manufacture
Supporting infrastructure
Supporting buildings

See Buildings (pg.11)

Transport continues on page 10 ………>Climate Bonds Initiative Taxonomy: Transport

9Transport
Passenger, freight & supporting infrastructure

SHIPPING

Asset type

Asset specifics

Paris
Agreementcompliant

Screening indicator

Vessels

Cargo ships

Use of low GHG fuel (e.g.
hydrogen, ammonia, electric,high % of biofuel), delivering
required emissions intensity
thresholds gCO2e/tonne/km

Zero emissions vessels

Use of low GHG fuel (e.g.
hydrogen, ammonia, electric,high % of biofuel), delivering
required emissions intensity
thresholds gCO2e/tonne/km

Passenger ships e.g. cruise ships
or ferries

Use of low GHG fuel (e.g. hydrogen, ammonia, electric, high %of biofuel), delivering required
emissions intensity thresholds
gCO2e/passenger/km

Certifiable

Oil tankers or other ships solelytransporting coal or oil

MISCELLANEOUS
VEHICLES

Infrastructure

Supporting infrastructure, e.g.
ports or manufacture

VehiclesZero direct emissions
miscellaneous vehicles suchas waste collection vehicles orconstruction vehicles

Supply chain
facilities

Dedicated manufacturing
facilities for vehicles and key
components, such as batteries,
being used in eligible vehicles

Infrastructure

Dedicated charging andalternative fuel infrastructure(when separate from fossil fuelfilling stations and garages)

Climate Bonds Initiative Taxonomy: Transport

10Water
Supply management & wastewater treatment

WATER
INFRASTRUCTURE

Asset type

Asset specifics

Water
monitoring

Smart networks, early warning
systems for storms, droughts,
floods or dam failure, water
quality or quantity monitoringprocesses

Water
Storage

Rainwater harvesting systems,
storm water management
systems, water distribution
systems, infiltration ponds,
aquifer storage, groundwater
recharge systems, sewer
systems, pumps, sand dams

No net GHG emissions are
expected, and the issuer
discloses the justification forthis decision with supporting
documentation

Water
treatment

Drinking water treatment, water
recycling systems, wastewater
treatment facilities, manure andslurry treatment facilities
Ecological retention system,
current force reduction
mechanisms

Negative net GHG emissions
are expected, and the issuer
has estimated and delivered
the GHG mitigation impactthat will be delivered over theoperational lifetime of the
project or asset

Water
distribution

Rainwater harvesting systems,
gravity fed canal systems,
pumped canal or water
distribution systems, terracing
systems, drip, flood and pivot
irrigation systems

Water
desalination

Seawater desalination
plants and brackish water
desalination plants

Flooddefences

Surge barriers, pumping
stations, levees, gates

Nature based
solutions

Water storage from aquatic
ecosystems, aquifer storage,
snowpack runoff, groundwater
recharge systems, riparian
wetlands

No net GHG emissions are
expected, and the issuer
discloses the justification forthis decision with supporting
documentation

Flood defences by ecologicalretention, restoration of riparian
wetlands, relocation of assets

OR

Drought defences by aquifer
storage, recharge zone
management, wetland
management
Water treatment by natural
filtration systems, forest andfire management

2 degreecompliant

Screening indicator

Certifiable

OR

The average carbon intensityof energy used to power theplant must be at or below
100g CO2/kWh over theremaining lifetime of the asset

Negative net GHG emissions
are expected, and the issuer
has estimated and delivered
the GHG mitigation impactthat will be delivered over theoperational lifetime of the
project or asset

Stormwater management
by permeable surfaces,
erosion control systems,
evapotranspiration systems
Products

Water saving technologies

Climate Bonds Initiative Taxonomy: Water

11

Buildings
Commercial, residential & energy efficiency
Asset type

Asset specifics

Commercial
buildings

Including offices, hotels, retailbuildings, public buildings,
educational buildings,
healthcare buildings etc.

An emissions footprint in
the top 15% of emissions
performance in the local
marketResidentialbuildings

Private dwellings

OR

Multifamily residentialbuildings

A substantial reduction
in gCO2/m2 because of
upgrade or retrofit

Data centres

See ICT (pg. 16)

Stations and related buildings
for eligible transport

See Transport (pg.7)

Industrial buildings

See Industry (pg.14)

Energyefficiency

Facilities dedicated to
manufacturing energy efficientcomponents

See Industry (pg.14)

Low carbon
building
materials

Low carbon and alternativebuilding materials such asalternatives to cement andconcrete

BUILTENVIRONMENT

Urban orsemi-urban
areas

Such as neighbourhood level
works, upgrades and retrofits
such as street lighting

The built environment or
specific programme must
improve its emissions
performance (gCO2/m2)
substantiallyURBAN
PLANNING

Infrastructure

District heating for residential
and commercial applications

Fed primarily by renewableenergyBuilding, maintaining or
upgrading utility tunnels forcables or pipelines

Significant resourceand energy efficiency
improvements

Urban policies and regulations
directed to climate change
mitigation e.g. car-free areas

Significant impact on urban
emissions

BUILDINGS

Other
building types

PRODUCTS
AND SYSTEMSFOR BUILDINGEFFICIENCY

2 degreecompliant

Screening indicator

Certifiable

Urban development

Other

Climate Bonds Initiative Taxonomy: Buildings

12Land use & marine resources
Agriculture, husbandry, aquaculture & seafood

AGRICULTURE(INCLUDINGMIXED USE
PRODUCTIVESYSTEMS)

Asset type

Asset specifics

Crop andlivestockproduction

Agricultural land used forthe production of crops,
agroforestry and silvopastoral
systems, rearing livestock
and interventions to enhance
adaptation and resilience
Livestock

Paris
Alignedcompliant

Screening indicator

Certifiable

Demonstration of significant
carbon sequestration,
reduction in emissions orcompatibility with ‘low
carbon agriculture’ targets
AND/OR adaptation andresilience activities

Agricultural production on
peatlandInfrastructure

Machinery and equipment tomanage and cultivate eligible
land or livestock

Eligible if the agricultural
production adheres with theabove

Associated management,
information systems and othertechnologies

COMMERCIAL
FORESTRY

Forests& timberproduction

Drip, flood and pivot irrigation
systems

See Water (pg.10)

Plantations and natural forests

No conversion from naturallandscape and health of theforest is well managed

Timber production on peatland
Infrastructure

Machinery and equipment tomanage and cultivate eligible
forested land

Eligible if the forest andtimber production adhereswith the above

Associated management,
information systems and othertechnologies

NATURALECOSYSTEMPROTECTION&RESTORATION

Pulp & paper

Production facilities incorporating
efficient pulping process, biorefineries, use of recyclates

LandLand remediation and clean up
Natural ecosystem land
(managed and unmanaged)

Infrastructure

Machinery and equipment tomanage eligible ecosystems

Habitat is appropriate for thelocation and is maintained ingood health

Eligible if the related land is incompliance with the above

Associated management andinformation systems and othertechnologies

Land Use continues on page 14 ………>Climate Bonds Initiative Taxonomy: Land use & seafood13

Land use & marine resources
Agriculture, husbandry, aquaculture & seafood

FISHERIES AND
AQUACULTURE

Asset type

Asset specifics

Paris
Alignedcompliant

Screening indicator

Fisheries

Wild fisheries and farmed fishMust hold certification forsustainable management

Infrastructure

Machinery and equipment tomanage and harvest in fisheries
and fish farms e.g. fishingvessels

Eligible if the fishery or
aquaculture operation
adheres with the above

Certifiable

On shore and off shore fishprocessing and storage facilities
connected to eligible fisheries
and fish farms
Associated management,
information systems and othertechnologies
SUPPLY CHAINASSETSMANAGEMENT

Supply chain

Input supply systems for seedproduction, distribution andaccessFacility is sustainable
managed and certified assuchPrimary processing and storage
facilities for eligible agricultural
produceEligible if agricultural produce
complies with relevant
Criteria

Primary processing and storage
facilities for eligible forestry
produceEligible if forest produce
complies with relevant
Criteria

Primary processing facilities
and storage for eligible
fisheries and aquaculture
activities

Eligible if fish produce
complies with relevant
Criteria

Climate Bonds Initiative Taxonomy: Land use & seafood

14

Industry
Industrial & energy intensive processes
Asset type

Asset specifics

CEMENT

Cementproduction
facilities

Production facilities,
incorporating dry processes,
reduced clinker content

STEEL

Steel and ironproduction
facilities

Production facilities andequipment, incorporating
electric arc furnace, smelting
reduction, efficient castingprocesses

BASIC
CHEMICALS

Basic
Chemicalproduction

Production facilities
incorporating lower carbon
feedstocks and more efficient
processes

Other primary
production andmanufacturing
facilities

Various

Biofuelproduction
facilities

See Bioenergy (pg.3)

FUEL
PRODUCTION

Paris
Alignedcompliant

Screening indicator

Certifiable

See Bioenergy (pg.3)

Hydrogen fuelproduction
facilities
CLEAN UP

Carbonscrubber

Facilities and products for cleanup, such as treatment of exhaustgases from industrial plants
Products dedicated to clean-up
or efficiency of fossil fuel energy

CCS has the ability to capture
100% of GHG emissions

CarbonCapture &Storage (CCS)

Facilities and products
dedicated to CCS

OTHER
INDUSTRY &MANUFACTURING

Secondaryprocessing &manufacturing

Various

SUPPLY CHAIN

Manufacturing facilities

Facilities dedicated to
manufacturing key components
for eligible facilities

Eligible if dedicated toan eligible asset type e.g.
solar panel or wind turbine
manufacture

Facilities dedicated to
manufacturing energy efficient
appliances and equipment e.g.
fridges, cookers etc

Energy efficiency rating
amongst top performers in
the market

Facilities dedicated to thestorage, distribution orretail of eligible industrial or
manufactured products

Eligible if dedicated to aneligible asset type e.g. allelectric rail supply chain

Other supply
chain

Climate Bonds Initiative Taxonomy: Industry

15

Waste and pollution control
Recycling, re-use & other waste managements

PREPARATIONWASTESTORAGE

Asset type

Asset specifics

Paris
AlignedcompliantEligibility criteria

Facilities forcollection,sorting andmaterial
recovery

Facilities and assets
with high recovery
rates of reusable orrecyclable material

Made from 100% recycled and recyclable
materials. Supports source segregation ofwaste

Collection of wastethat is going to landfill

Collection vehicles must meet Transport
Criteria

Waste
storagefacilities

Storage and bulking
facilities

Dedicated to eligible waste processing asset(s)downstream. Those downstream assets do
not need to be certified but do need to meetthe criteria for that asset type. All waste stored
must be transferred to those assets

Collection vehicles

Must meet Transport Criteria

RE-USE

Facilities
for there-use ofmaterials

Facilities refurbishingor repairing products
or cleaning components or products forreuse in their originalfunction

The products are put back to their originaluse without any further pre-processing
required. For WEEE, the product is coveredby ecolabelling scheme and only those
products meeting the three lowest energy
use categories are eligible

RECYCLING

Facilities
for therecycling ofmaterials

Facilities for recycling
metals, plastics, glass(except aggregate)
and paper

The secondary raw materials (such as steel,aluminum, glass, plastics) cease to be waste
and are sold to be used as secondary raw
materials

BIOLOGICALTREATMENTFACILITIES

Anaerobic
digestion
facilities

Facilities for the
production of biogas
from green waste

Total methane emissions <= 1285g CH4/
tonne of waste input. Woody waste must
be segregated before or after processing
and sent to an eligible EfW or composting
plant. Monitoring, sampling and control of
the following is carried out in accordancewith PAS110 guidance. The solid and liquid
products are not landfilled and replace nonwaste materials in the market

Composting
facilities

Facilities for the
production ofcompost fromresidual waste

Zero measurable methane emissions.
Monitoring, sampling and control is carriedout in accordance with PAS100 guidance.
The resulting product is not landfilled andreplaces non-waste material in the market

WASTE TOENERGY

Waste toenergyplants (e.g.
incineration,
gasification,
pyrolysis
andplasma)Facilities for solid
waste treatment
with production ofelectricity or heat asa by-product

Only facilities outside the EU are potentiallyeligible. Plant efficiency >= 25%; AND Bottom
ash recovery; AND >= 90% recovery of metalfrom ash; AND Average carbon intensity ofelectricity and/ or heat over the life of the plant<= waste management allowance; AND capacityof the plant does not exceed the calculated
residual waste at any time in the plant’s life

LANDFILL

Landfillwith gas
captureProjects to add gas
capture to existing,closed landfill
facilities

Biogas from closed landfill facilities. Gas capture>= 75%; AND gas used to generate electricity andinput to the natural gas grid or used as vehicle fuel;AND the landfill is not accepting further waste(with the exception of restoration materials)

Certifiable

Landfill
without gas
captureClimate Bonds Initiative Taxonomy: Waste and pollution control

16

Waste and pollution control
Recycling, re-use & other waste managements
Asset type

RADIOACTIVE WASTE
MANAGEMENT

Nuclearwaste
treatment

WASTEWATER

Water
treatment

Asset specifics

Paris
AlignedcompliantEligibility criteria

Certifiable

Nuclearwaste
disposalSee Water (pg.10)

Information & communications technology
Networks, management & communication tools
Asset type

Asset specifics

BROADBAND
NETWORKS

Broadband networks

Fibre optic and cable networks

Supporting infrastructure

Such as internet exchange points

IT SOLUTIONSConnectivity

Teleconferencing and telecommuting
software and service

Data hubs

Including data storage centres

Supporting
infrastructure

Such as hardware and manufacture of
hardware

Infrastructure, softwareand hardware for remote
power management

Remote solutions for appliance power
management, and load-balancing of
renewables

In situ power
management

Including automatic switching, energy
monitoring & data systems

POWER
MANAGEMENT

2 degreecompliantClimatecompatible
indicator

Certifiable

Revisions and updates to the Climate Bonds Taxonomy
The Climate Bonds Taxonomy is a working document. It will be revised and updated periodically as developments are
made in the Climate Bonds Standard Sector Criteria and in international green bond policies. It will also be revisedwhen low carbon trajectories from prominent research institutions are released and updated.
Climate Bonds Initiative has an active role in developing international green bond policy and keeps up-to-date withthe latest climate science and low carbon development trajectories through its Technical Working Groups andthrough external engagement and research.
Updates will be announced on the Climate Bonds Blog.
Climate Bonds Initiative © September 2021 www.climatebonds.net
Disclaimer: The information contained in this communication does not constitute investment advice in any form and the Climate Bonds Initiative is not an investment adviser. Any reference to a financial organisation or debt instrument or investment product is for information purposes only. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content
on external websites. The Climate Bonds Initiative is not endorsing, recommending or advising on the financial merits or otherwise of any debt instrument or investment product and no information within this document should be taken as such, nor should any information in this communication be relied upon in making any investment decision. Certification under the Climate Bond Standard only reflects the climate attributesof the use of proceeds of a designated debt instrument. It does not reflect the credit worthiness of the designated debt instrument, nor its compliance with national or international laws. A decision to invest inanything 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 ororganisation, based in whole or in part on any information contained within this, or any other Climate Bonds Initiative public communication.

Climate Bonds Initiative Taxonomy: Information & communications technology

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