For immediate Release
Growing Greener: New Climate Bonds Criteria for Agriculture Production Now Available for Certification
London, 24 October 2024: The Climate Bonds Initiative today announced the launch of the newly-developed Agriculture Production (Crop and Livestock) Criteria, now available for Certification under the Climate Bonds Standard. This significant step marks the culmination of extensive collaborative efforts by technical and industry experts, providing a critical tool for the global investment community to help decarbonise one of the largest sources of climate emissions within food systems.
Key messages:
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The Agriculture Production (Crop and Livestock) Criteria are now available for Certification under the Climate Bonds Standard.
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The global agrifood system accounts for over 30% of global emissions, making it a major contributor to climate change. The transformation of the agriculture sector over the coming decades is essential to limiting global warming to 1.5°C., through both emissions reductions and carbon sequestration measures.
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The criteria address critical environmental factors such as biodiversity, water use, and social impacts, while also focusing on climate resilience through transition pathways, making them a powerful tool for the agriculture sector to meet emissions reduction targets.
Key elements of the Agriculture Production Criteria:
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Transition pathways: In line with the Climate Bonds Standard, the criteria emphasise transition pathways within agricultural systems. This allows certified entities to demonstrate meaningful progress in reducing emissions, while adapting to climate impacts.
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Deforestation prevention: Agriculture, and particularly livestock expansion, contributes to nearly 90% of the global rate of deforestation. The Criteria require that any certified issuance should be deforestation- and conversion-free as a precondition for Certification.
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Biodiversity, water use, and social impacts: Beyond climate considerations, the Criteria provide guidance on reducing impacts on biodiversity and water resources, while advancing animal welfare.
Types of Certification available:
Entities and projects can access Certification under the following categories:
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Use of proceeds: Funds raised by bonds or loans can be directed towards eligible assets and projects in the agriculture sector that contribute to emissions reduction, carbon sequestration, climate adaptation and/or enabling activities.
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Sustainability-linked debt: Certification ties debt instruments to specific sustainability performance targets.
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Planned assets: This Certification covers future projects or assets with clear pathways to meeting the agriculture criteria.
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Entity Certification: This option enables organisations involved in crop and livestock production to demonstrate alignment with low-carbon transition pathways, particularly relevant for larger agricultural businesses and supply chains.
Collaborative effort and support:
This project is funded by the Gordon and Betty Moore Foundation through The Finance Hub, which was created to advance sustainable finance. The criteria were developed with expert guidance from the technical and industry working groups convened by the Climate Bonds Initiative, which include leading scientists, industry professionals, and sustainability experts.
Next steps:
With the Criteria now available, bonds and loans linked to eligible agricultural projects can be Certified, providing a clear pathway for investors seeking to address climate risks and emissions in the agriculture sector. Interested parties are encouraged to contact certification@climatebonds.net to begin the Certification process.
The formal launch of Agriculture Production Criteria will take place at the Climate Bonds Global Connect Conference in London, marking an important milestone in the global effort to decarbonise agriculture and achieve long-term climate resilience.
For more information please contact:
Gabriel Carhart,
Climate Bonds Initiative Communications Specialist
gabriel.carhart@climatebonds.net
About Climate Bonds Initiative: The Climate Bonds Initiative is a global not-for-profit organisation working to mobilise global capital for climate action. Climate Bonds Standard and Certification is a science-based, multi-sector certification scheme for investments, and now companies/entities, that addresses the challenge of climate change. . For more information on Certification please visit the website or contact the Agrifood Standards team at agrifoodstandards@climatebonds.net.