Join the Public Consultation: Climate Bonds Standard Expands with New Electrical Utilities Criteria to Accelerate Green Energy Transition
Climate change presents an urgent and pressing challenge, particularly in the electricity sector, a significant contributor to global greenhouse gas emissions. Climate Bonds Standard continues to expand by developing eligibility criteria for the Electrical Utilities sector, now open for public consultation. This is your opportunity to contribute to a vital effort that aims to reshape the landscape of sustainable finance in the electricity sector.
The electricity sector is at the forefront of the global effort to combat climate change. With emissions from this sector representing a substantial portion of the global total, the need for clear, science-based criteria to guide sustainable investments has never been more critical.
Our new Electricity Utilities Criteria aim to set stringent requirements for utilities to qualify for inclusion in certified climate instruments.
Role of the Criteria
Our criteria come at a critical time when the pace of transition to renewable energy needs significant acceleration. The challenge is enormous, but with the right frameworks in place, we can catalyse the transition to a green energy system.
These criteria are designed to provide a framework for:
- Mitigation Requirements: Focusing on strategies to reduce emissions, in line with net-zero targets.
- Adaptation and Resilience: Preparing the sector for the impacts of climate change.
- Guiding Financial Decisions: Offering a clear pathway for utilities and investors to support climate goals.
Scope of the Criteria
Electricity generation systems are now the largest source of global greenhouse gas emissions, accounting for over 40% of energy-related CO2 emissions. Transforming this sector is crucial for decarbonising the global economy.
The new criteria apply to electrical utilities entities with transition plans, covering the electricity generation segment of the overall electricity supply chain. It includes entities and sustainability-linked debt issued by these entities, as well as use-of-proceed bonds financing mitigation measures. Compliance with these criteria is pivotal for aligning with sector-specific emission intensity transition pathways and contributing to the decarbonisation of the power sector.
Resources:
Your Voice in the Public Consultation
The public consultation phase for the new Electrical Utilities Criteria is now open, and we're calling on industry experts, environmental advocates, and all interested stakeholders to participate. Your insights, expertise, and feedback are crucial in refining these criteria to ensure they are robust, effective, and aligned with the goals of the Paris Agreement.
The Last Word
The development of the Electrical Utilities Criteria marks a significant stride towards decarbonising our global energy system.
Your participation in this public consultation is not just a contribution to a document; it's an active step in shaping a sustainable, low-carbon electricity generation system.
Join us in this journey. Your voice matters.
‘Til Next Time,
Climate Bonds.
Other News: Climate Bonds announces a number of usability improvements to the global Certification Scheme under the Climate Bonds Standard (CBS) v4.1 including an expanded definition for Research and Development (R&D) expenditure and a flexibility pocket of 5% for the Use of proceeds assessment framework.
Now Open for Public Consultation.
