The Climate Bonds Standard and Certification Scheme is a labelling scheme for bonds and loans. Rigorous scientific criteria ensure that bonds and loans with Certification, are consistent with the 2 degrees Celsius warming limit in the Paris Agreement. The Scheme is used globally by bond issuers, governments, investors and the financial markets to prioritise investments which genuinely contribute to addressing climate change.
Complete Package for Steel Industry expands Certification under the Climate Bonds Standard and Opportunities for Policymakers to guide the sector on a climate-aligned pathway launched now!
Criteria: The Steel Criteria lay out the requirements that Steel production asset, projects must meet to be eligible for inclusion in a Certified Climate Bond and for company's on a credible transition path to issue transition labelled debt. The Criteria apply to manufacture and production of steel and do not address other stages of the value chain.
The Criteria contain Mitigation Requirements, Adaptation & Resilience Requirements and Transition Requirements.
Bonds and loans linked to these eligible assets and projects will be aligned with the Paris Agreement 1.5oC limit.
A webinar was held on the 23 of June 2022 to launch the Criteria for public consultation. The recording of that webinar is below.
Why develop eligibility Criteria for steel investments?
Improved guidance, such as these Criteria, will guide investors to invest in credible transition activity; guide asset owners to upgrade and guide policy makers to incentivise the transition and can be utilised by governments in setting regulation or recommendations for decarbonising the sector.
A Green Future for Steel: Policy to accelerate the steel transition
The 2020s offers a perfect opportunity for the steel industry to transition in Europe. 74% of EU steel blast furnace capacity needs reinvestment by 2030, and blast furnaces have a life span of decades. Coming investment cycles will lock plants into a specific production process. Policymakers must guide industry and investors onto a climate-aligned pathway for steel. Learn more in Climate Bonds' policy paper A Green Future for Steel.
The Technical and Industry Working Groups (TWG and IWG)
To create the Criteria, we convened a Technical Working Group (TWG) and an Industry Working Group (IWG) with representatives from investors, public entities, research institutes and international policy bodies from around the world. These experts ensure a robust pragmatic criteria is developed.
The Steel Criteria Technical Working Group Members
Global Efficiency Intelligence
EBRD and EU Platform for Sustainable Finance
Dr. Max Åhman
Dr. Rutger Gyllenram
Kobolde & Partners AB
Dr. Brenda Chan
IIGCC and TPI
Rocky Mountain Institute
Rocky Mountain Institute
Lawrence Brekeley National Laboratory (LBNL)
Dr. Sha Yu
Pacific Northwest National Laboratory
Dr. Zushu Li
WMG The University of Warwick
Transition Pathway Initiative (TPI)
Climate Bonds Sustainability Analyst Coordinating the Process
Industry Working Group (IWG) Members*
Affirmative Investment Management
ERM Certification and Verification Services
Institutional Shareholder Services ESG
Japan Credit Rating Agency
National Australia Bank
NN Investment Partners
Societe Generale Corporate and Investment Banking
World Steel Association
*Members of the IWG have provided critical and useability-focused consultation and feedback on the Criteria, but this does not automatically reflect endorsement of the criteria by all members.