Building interoperability through the Climate Bonds Taxonomy, Standard & Certification Scheme

Public consultation opens for expanded Taxonomy and Certification eligibility

Key highlights: 

• Increased Certification eligibility through taxonomy equivalence: The Climate Bonds Standard & Certification Scheme to allow recognised criteria from external taxonomies to be used alongside Climate Bonds’ existing Sector Criteria. 
• Integrity-driven interoperability across global and local criteria: The Climate Bonds Taxonomy to act as a practical tool for a common language, supporting robust market diversity that reflects local contexts.   
• Investment-ready pathway for global markets: This connection of localised criteria from regional taxonomies to the Climate Bonds Taxonomy and Climate Bonds Standard & Certification Scheme will help scale climate-aligned investment across jurisdictions. 
   

London, 9 June 2026, 12pm:  As sustainable finance taxonomies multiply around the world, Climate Bonds Initiative is proposing updates to the Climate Bonds Taxonomy as well as the Climate Bonds Standard & Certification Scheme that will make it significantly easier for issuers and investors to navigate different regional criteria without compromising scientific integrity.  

Released today for public consultation, the update will expand Certification eligibility through the recognition of equivalent criteria from external taxonomies, with the Australian Sustainable Finance Taxonomy serving as the first pilot. The proposal is linked to the ongoing expansion and updating of the Climate Bonds Taxonomy. 

The expansion is enabled by the new Climate Bonds Equivalence Methodology for Climate Mitigation, which provides a robust and transparent process for determining when external taxonomy criteria will be recognised within the Climate Bonds Standard & Certification Scheme. If approved, issuers would be able to use Climate Bonds Sector Criteria, approved external taxonomy criteria, or a combination of both when pursuing Climate Bonds Certification. 

This represents the first step in a broader programme to expand the Climate Bonds Taxonomy by incorporating recognised criteria from local taxonomies, when those criteria are in line with the Equivalence Methodology. Over time, this will broaden the range of climate-aligned activities recognised by Climate Bonds while maintaining a single trusted Taxonomy and Standard & Certification Scheme. 

A structured approach to equivalence 

At the heart of the proposal is Climate Bonds’ new Equivalence Methodology for Climate Mitigation, a set of principles and a process for assessing whether externally-developed criteria can be recognised in the Climate Bonds Taxonomy, and by extension under the Climate Bonds Standard & Certification Scheme. 

Externally-developed criteria will be accepted when they are consistent with those principles, which ensure scientific grounding, alignment with 1.5°C or well below 2°C  trajectories, avoidance of fossil-fuel lock-in, and transparent governance.   

Accepted externally-developed criteria are documented in the External Taxonomy Equivalence Register (ETER), included as part of the public consultation. 

Australian Taxonomy selected as first pilot 

The Australian Sustainable Finance Taxonomy has been selected as the inaugural pilot because of its central role in Australia's sustainable finance market and Climate Bonds' close involvement in its development.  

The pilot assessment of the activities and measures in the Australian Taxonomy has shown extensive compliance with the Equivalence Methodology, and indeed very close convergence between the Australian criteria and Climate Bonds criteria in most sectors including Renewable Energy, Buildings, Transport and Manufacturing. Moreover, criteria in the Australian Taxonomy for sectors not previously represented in the Climate Bonds Taxonomy, such as Mining and Critical Minerals and Aviation, that comply with the Equivalence Methodology, are being considered for inclusion in the Climate Bonds Taxonomy and the Standard & Certification Scheme for the first time, pending the outcome of the public consultation process, enabling a significant expansion of Taxonomy and Certification coverage. 

“Global sustainable finance is entering a new phase, where interoperability between taxonomies is critical to scale investment,” said Anna Creed, Director of Environmental Impact & Thought Leadership at Climate Bonds Initiative. “Our goal is to create a transparent pathway for recognising equivalent global and localised criteria from a variety of sources while maintaining the scientific integrity of Climate Bonds Certification, without lowering ambition. And the Australian Taxonomy is a great starting point.” 

 Nicole Yazbek-Martin, Executive Manager: Standards and Market Practice, Australian Sustainable Finance Institute, said: 

"ASFI warmly welcomes Climate Bonds Initiative's proposal to expand the Climate Bonds Taxonomy and Certification Scheme using an equivalence approach, with the Australian Sustainable Finance Taxonomy selected as the inaugural pilot. As the custodian of the Australian taxonomy and the organisation that led its development in partnership with the Australian Government, this is a development we are particularly encouraged to see. 

This proposal creates a clear and credible mechanism for expanding the Climate Bonds Taxonomy and Certification Scheme to cover Australian taxonomy-aligned transactions, supporting global interoperability and market adoption of the taxonomy and deepening the pipeline of certified sustainable finance activity in Australia. ASFI looks forward to engaging actively with this consultation and encourages Australian market participants — issuers, investors, and verifiers alike — to do the same."  

Public consultation now open

Climate Bonds is inviting stakeholders across finance, policy and industry to provide feedback on the proposed updates. 

Input from market participants will help ensure that new version 4.4 of the Standard delivers both robust scientific integrity and practical usability across diverse regional markets. 

Consultation materials, including the Draft Climate Bonds Standard v4.4, the Draft Climate Bonds Equivalence Methodology for Climate Mitigation, and the External Taxonomy Equivalence Register (ETER), which lists Australian Taxonomy activities and measures that have been assessed and their equivalence determinations, are available through the Climate Bonds website. 

 Submit your feedback and take part in the consultation: 

• Consultation open until: 7 August 2026
• Submit your feedback here.

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For interviews and more information, please contact:   

Leticia Braga, Communications Specialist, Climate Bonds Initiative  

leticia.braga@climatebonds.net  

Notes for journalists: 
 
About Climate Bonds Initiative: Climate Bonds is the leading international non-governmental organisation mobilising global capital for climate action. We drive the growth of the green and sustainable debt market through science-aligned frameworks including our taxonomies and standards, our Certification, our data and insights, and our provision of expert policy and technical advice. More information on our website here. 

About Climate Bonds Standard & Certification Scheme: The Climate Bonds Standard & Certification Scheme is a multi-sector, science-based framework that allows investors and intermediaries to assess the climate credentials and environmental integrity of bonds and other sustainable finance products. Version 4.3 covers Use of Proceeds, Asset, Entity, and Sustainability-Linked Debt Certification products. More information here.