Standard

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.

Basic Chemicals

 

Resources:

  1. Basic Chemicals Criteria Document
  2. Basic Chemicals Criteria Document (Chinese)
  3. Frequently Asked Questions
  4. Basic Chemicals Background Paper 
  5. Public Consultation Feedback Summary - Basic Chemicals
  6. Climate Bonds Standard V3.0

 

Timeline of Development:

August 2021: TWG Launch   

April 2022: Draft Criteria open for public consultation 

News:

Basic Chemicals Criteria is now available for Certification

Status: The Basic Chemicals Criteria is released for public consultation from 6 April 2022 through to 20th June 2022. We would like your feedback on the Criteria. Please submit feedback via the Public Consultation Feedback Form before 20th June. All forms should be sent to public.consultation@climatebonds.net

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.

Bonds and loans linked to these eligible assets and projects will be aligned with the Paris Agreement 1.5ºC limit.

 

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**

 

Andrew Mak — Carbon Care Asia Mayur Mukati — Sustainanalytics
Armand Satchian — ISS-ESG Frans Stockman — CEFIC (European Chemical Industry Council)
Isobel Edwards — NN Investment Partners Jelena Macura — CEFIC (European Chemical Industry Council)
Jana Hock — Shareaction Sothi Selvam — ICC (Indian Chemical Council)
Katy House — Affirmative Investment Management Partners Rakesh Kumar — ICC (Indian Chemical Council)
Guilia Rado — Affirmative Investment Management Partners Harsharaj Karangle  — ICC (Indian Chemical Council)
Kristin Atkinson, Fidelity International S. Jaikumar  — ICC (Indian Chemical Council)
   

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