Criteria Expansion Continues: Climate Bonds Standard Extends to Electrical Grids and Electricity Storage
The public consultation for the proposed Grids and Storage Criteria starts today and will close on 21st July 2021. We're looking forward to receiving your feedback.
Expanding and upgrading electricity grid and storage infrastructure is crucial to meeting the steep decarbonisation goals for energy systems. More flexible and distributed systems are needed to bring about clean electricity.
At the same time, this infrastructure is vital for the decarbonisation of other sectors. For industrial sectors or buildings, electrification is a key means to achieving the necessary emissions reductions. The dependence of so many sectors and societies on stable electricity provision makes grid resilience essential.
Mobilising Capital, Reducing Emissions
Electricity transmission & distribution (T&D) and storage can increase emissions just as it can decrease them, though this depends on the energy mix. Meanwhile, it is estimated that emissions from T&D losses are greater than the entire chemical industry.
Grids and storage investment must therefore do two things. It must modernise and improve system efficiency and resilience, and it must partner a significant increase in low-carbon energy investment and capacity.
The International Energy Agency estimates that an annual spending of USD 820 billion on electrical grids will be needed by 2030 to reach net-zero by 2050. However, global investment has been falling for the past several years, down from USD 306 billion in 2016 to USD 248 billion in 2020.
Creating a new Grids and Storage Criteria will catalyse investment and guide governments looking to legislate regulation or provide recommendations for decarbonising the sector.
The Electrical Grids and Storage Criteria: How We Got Here
The Climate Bonds Initiative convened a Grids and Storage Technical Working Group (TWG) in late 2018 comprised of 11 experts across 8 organisations including universities, consultancies and development banks. The full list of TWG and IWG representatives can be found here.
The TWG developed mitigation and adaptation requirements for T&D and storage assets and activities.
The Industry Working Group (IWG) provided consultation on TWG’s criteria decisions. It was comprised of grid and storage and green bond industry experts to make sure that the Criteria were applicable for the green bond market.
We Need Your Feedback
We welcome reviewers from around the world to feed into our public consultation process for these Criteria.
Please download the Criteria Document and Background Document from our Electrical Grids and Storage webpage and submit the Feedback Form with your comments to public.consultation@climatebonds.net by Wednesday 21st July 2021.
The Last Word
Developing the Grids and Storage Criteria is another stage in the expansion of the Climate Bonds Standard into new industry sectors.
The aim of the Grids and Storage Criteria is to have a science-based and verifiable screening process for both issuers and investors to assess the climate and environmental benefits of investing in the sector.
As with all of Climate Bonds’ efforts, the ultimate objective of this Criteria is to augment public and private investment, in climate mitigation, adaptation and resilience interventions.
Join us for our Public Consultation Webinar on the 8th of June as we unpack the details of the Criteria.
Public feedback is integral to the development and review process that our TWG and IWG groups undertake.
We look forward to receiving your input!
‘Til next time,
Climate Bonds
To find out more about The Electrical Grids and Storage Criteria, register for our upcoming Webinar here.
