Basic Chemicals

Status: The Basic Chemicals Criteria is now available for Certification. Get Certified via Fast-Track>>>

Criteria: The Basic Chemicals Criteria lay out the requirements that Basic Chemicals production asset, projects must meet to be eligible for inclusion in a Certified Climate Bond and for companies on a credible transition path to issue transition labelled debt. 

The Criteria contain Mitigation Requirements, Adaptation & Resilience Requirements and Transition Requirements.

Financial instruments (bonds and loans) linked to these eligible assets, activities and entities will be aligned with the Paris Agreement and the goal of keeping global temperature rises to no more than 1.5oC above pre-industrial levels.

Public consultation:

Public consultation began on 6th April 2022.

A webinar to launch the consultation was held on 6th April to provide an opportunity for interested parties to learn more about the Criteria and to ask questions. 

The webinar recording is below.

Why develop eligibility Criteria for basic chemical 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. 

Chemicals are part of most consumer goods that we use every day, and are a critical feed of other industrial processes. The chemical sector is one of the biggest industries in the world and the largest industrial user of energy, accounting for 30% of energy consumption. It also represents around 5% of total global GHG emissions.

Basic chemicals are the building blocks of thousands of products and materials. These chemicals include olefins, aromatics, methanol, and ammonia, with the most significant volume and energy consumption, representing around 60% of total direct CO2 emissions from the chemical industry.

Given the importance and expected growth in market volume and the contribution of direct emissions of chemical production, there is an urgent need to decarbonise this sector that will overgrow in the coming years. Some of the technologies and measures to decarbonise this sector are CCUS, electrification, fuel substitution and feedstock substitution.

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 Basic Chemicals Criteria Technical Working Group Members

Techical Lead: Basic Chemicals Criteria Elias Martínez	EBRD Environment and Sustainability Department Robert Adamczyk	Lund University Dr. Fredric Bauer	University of Miskolc Dr. Heriberto Cabezas	TNO   Dr. Jonathan Moncada	Heriot-Watt University Dr. Denny K. S. Ng	Agora Energiewende Dr. Camilla Oliveira	TNO  Dr. Carina Oliveira
Imperial College London Dr. Gbemi Oluleye	The Climate Solutions Community AIChE Dr. Thomas Rhem	Oxford University Dr. Kok Siew	International Energy Agency (IEA) — Expert Advice Peter Levi	Sands Consulting Solutions Dale Sands (Climate Resilience and Adaptation)	Lux Research Kristin Marshall (Climate Resilience and Adaptation)	S&P Global Rita Ferreira (Climate Resilience and Adaptation)	Griffith University Dr. Fahim Tonmoy	Climate Bonds Sustainability Analyst Coordinating the Process Marian Rodriguez

The Basic Chemicals Criteria Industry Working Group Members**

**Note, while this group was consulted and advised on the Criteria, this does not necessarily represent automatic endorsement of the Criteria  by all members.

1. Basic Chemicals Criteria Document (Chinese) / 基础化学品行业认证标准