In the ever-evolving landscape of sustainable finance, adaptability and forward-thinking are crucial. Recognising this, the Climate Bonds Initiative is pleased to announce a significant update to the Climate Bonds Standard (CBS). The Standard will now Certify not only existing physical assets but also planned assets and projects that are in development or even at the design stage. This expansion enhances flexibility for issuers and investors, offering new opportunities to support projects that will contribute to a low-carbon, sustainable future.
Broadening the Horizon: From Existing to Planned Assets
Previously, the Climate Bonds Standard focused on certifying existing physical assets such as operational equipment, buildings, and infrastructure. These assets are required to fully meet the Sector Criteria published on the Climate Bonds website, ensuring they are already contributing to reducing carbon emissions and supporting climate goals.
However, we recognise that the journey towards a sustainable future requires long-term planning of resources and activities. That’s why we are expanding the scope of the Standard to include planned physical assets or projects under development. This means that projects which are still in the design or in the development phase and have clear, detailed plans demonstrating their future compliance with the Climate Bonds Sector Criteria, can now be considered for Certification.
Eligibility for Planned Assets: A Rigorous Approach
To maintain the integrity and rigour of the Climate Bonds Standard, the Certification of planned assets will adhere to strict requirements:
- Detailed Designs and Specifications: The plans and designs of the project must provide sufficient detail to demonstrate that the completed asset will fully satisfy the relevant Sector Criteria, ensuring it contributes to climate goals once operational.
- Environmental and Legal Compliance: All necessary environmental impact assessments, permits, and licences must be obtained, relevant to the current stage of the project.
- Robust Reporting and Transparency: Projects must comply with all relevant reporting requirements, while the asset remains Certified under the Standard.
Supporting Long-Term Planning
Asset Certification can be used as a stepping stone to a Use of Proceeds or an Entity Certification, to attract investors/funders. It may also serve as due diligence of the green credentials of a project or asset in a prospective sale transaction.
This expansion of the scope of Asset Certification enables issuers to secure early-stage funding for future projects, encouraging the development of transformative solutions that may still be on the drawing board but hold significant potential to drive the transition to a low-carbon economy.
The Last Word
With this new flexibility, there are even more opportunities to align your financial activities with sustainability goals and make a meaningful impact on our journey to a greener future.
At the Climate Bonds Initiative, we remain committed to mobilising capital for climate action. We believe that by broadening the scope of our Standard, we can better support forward-thinking projects that will define the future of sustainable development.
We invite issuers, investors, and stakeholders across sectors to explore the expanded Climate Bonds Standard. For more details on the expanded criteria and how to apply, please visit our website or contact our team here.
‘Til Next Time,
Climate Bonds.
Exciting Update: Agriculture Criteria Launch at Climate Bonds Global Connect Conference
We are thrilled to announce that the Public Consultation for the new Agriculture Production (Crop and Livestock) Criteria has officially closed. A big thank you to everyone who provided valuable feedback, which is now being consolidated to refine the Criteria further.
As we continue to expand the reach of the Climate Bonds Standard across key sectors, the Agriculture Criteria will be a critical addition—covering crop and livestock production. This new development represents an exciting step forward in unlocking green finance opportunities for sustainable agriculture.
The official launch of the Agriculture Criteria will take place at the upcoming Climate Bonds Global Connect Conference in London. Don’t miss the chance to be part of this pivotal moment for sustainable investment! Join us at the conference to witness the expansion of the Climate Bonds Standard and engage with experts on the future of green finance.
Register now to secure your place and stay at the forefront of the growing green bond market.
