Certification

The Climate Bonds Standard and Certification Scheme is a labelling scheme for Entites, Assets, bonds, loans & other sustainability-linked debt instruments. Rigorous science-based criteria ensure that it is consistent with the goals of the Paris Climate Agreement to limit warming to 1.5 degrees. The Scheme is used globally by bond issuers, governments, investors and the financial markets to prioritise investments which genuinely contribute to addressing climate change.

 

  1. Certification
  2. Certification under the Climate Bonds Standard

Certification under the Climate Bonds Standard

 
 
 



CLIMATE BONDS STANDARD & CERTIFICATION SCHEME EXPANDS

 

 For more details download the brochure.
 
 
 
 
Our expanded Standard and Certification Scheme is based on our 5 principles to protect from Greenwashing:

 
In line with 1.5-degree trajectories



All goals and pathways need to align with zero carbon by 2050 and nearly halving emissions by 2030.

 
Established by science



All goals and pathways must be set by scientific experts and be harmonized across countries.

 
Offsets don't count



Credible transition goals and pathways don't count offsets but should count material upstream scope 3 emissions.

 
Technological viability trumps economic competitiveness



Pathways must include an assessment of current and expected technologies. Where a viable technology exists, even if relatively expensive, it should be considered in the decarbonization pathway for that economic activity.

 
Action not pledges



A credible transition is backed by time-bound metrics rather than a commitment/pledge to follow a transition pathway at some point in the future.
 
Our expanded Standard and Certification Scheme offers two levels of Certification





ALIGNED

Level 1: Entities, Debt Instruments or Assets that are already aligned with 1.5 degree pathways. This category includes both those already near net-zero and those above net-zero but within sectoral 1.5 degree pathways and transition plans that predict alignment with those pathways going forward.



and 



TRANSITION



Level 2: Companies or Sustainability-Linked Debt whose transition plans predict that they will be aligned with 1.5 degree pathways by 2030.

 
The expansion of our Certification Scheme grew from the need for new financial mechanisms that enable systemic change. We recognise that in order to operate in a lower carbon economy, most sectors must undergo a major transformation, and this isn’t easy for some of the highest emitters.



Green or sustainable bonds are a good start for financing green activities, but we need ways for all sectors to transform. We are proud to now offer the following Certifications, based on our ambitious and science-based Standard.



Use of Proceeds (UoPs) debt instruments: The proceeds of such instruments are allocated to specific projects, assets, activities, or expenditures which align with the Climate Bonds Sector Specific Criteria.



Assets: Certification of the environmental credentials of specific projects, assets, or a portfolio of assets, in accordance with the Climate Bonds Sector Specific Criteria.

Non-financial corporate entities: This Certification is available to legal Entities that provide non-financial goods and services, including:

Entities with ambitious Performance Targets, that are aligned with the Climate Bonds Sector Criteria at the time of Certification or that will do so by 2030, which have credible transition plans and meet the disclosure requirements of the Standard and

General-purpose debt instruments issued by Certified Entities that meet above requirements.

 

Sustainability-linked debt instruments (SLDs): These are general-purpose debt instruments, the financial or structural characteristics of which can vary depending on whether the issuer achieves predefined Performance Targets. Issuers of Certified SLDs are subject to the same requirements as for Certified Entities.

 
 
 
The basic pillars for all types of Certifications under the Standard are a standardised rule set of sector level eligibility of projects, binary assessment, transparency and external review by a Climate Bonds Approved Verifier. Climate Bonds currently has the following Sector Criteria eligible for Certification:
 
Disclaimer: The information contained on this page does not constitute investment advice in any form or any invitation or inducement to engage in investment activity 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 any content on any external website. Certification under the Climate Bonds Standard relates exclusively to the conformity of one or more designated debt instruments, designated assets and/or designated entities with the applicable Climate Bonds Standard at the time of certification. Certification under the Climate Bonds Standard carries no implication (and should not be understood as carrying any implication) as to any other aspect of any debt instrument or investment product or any collection of debt instruments or investment products or any asset or entity or group of assets or entities or as to continuing conformity at any time after the time of certification. In particular, such certification carries no implication (and should not be understood as carrying any implication) that any stated target has been or will at any time be met or that any particular legal or regulatory requirement has been or will be satisfied. The Climate Bonds Initiative is not endorsing, recommending or advising on the financial merits or (subject to the previous paragraph) any other aspect of any debt instrument or investment product or any collection of debt instruments or investment products or any asset or entity or group of assets or entities and no information within this document should be taken as such, nor should any information in this document be relied upon in making any investment decision. A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind, for any investment made by an individual or organisation, nor for any investment made by third parties on behalf of an individual or organisation, based in whole or in part on any information contained within this, or any other Climate Bonds Initiative document.