Status: The Buildings Criteria is available for use in certifications. Get in contact with certification@climatebonds.net to start the certification process of your buildings green bond.
Bonds and loans linked to these eligible assets and projects will be aligned with the Paris Agreement 2 oC limit
What are the Building Criteria
The greenhouse gas emissions of cities are very significant: up to 70% of a large city's emissions are related to its buildings. Investing in low emissions or zero emissions buildings will play an essential role in contributing to achieving the Paris Agreement goals.
In the long term, green bonds which are tied to low emission or zero carbon buildings are expected to amount to 40% of the green bonds market. The growth of this market will depend on the confidence among investors that the buildings are making a genuine contribution to the transition to a green economy.
1. Buildings Brochure
- Trajectory Methodology
- Extrapolation Methodology
- Proxy Methodology
- Upgrade Methodology
- Frequently Asked Questions
Timeline of development
Jan 2017: Latest TWG meeting
Sep 2014: Public consultation closed
Jun 2014: Released for public consultation
Certifications
May 2018: Obvion Green Storm 2018, Netherlands
April 2018: New York State Housing Finance Agency
Feb 2018: National RMBS Trust, Australia
Dec 2017: LBBW, Germany
To see the whole list of Low Carbon Buildings Climate Bonds, visit our List of Certified Bonds
The Low Carbon Buildings Criteria set out what building assets are eligible for certification under the Climate Bonds Standard. They are divided into three different types:
- Commercial Buildings: buildings used for commercial purposes that include office space, retail space, warehouse, etc. Each commercial subcategory has a unique emissions performance profile.
- Residential Buildings: buildings used for housing that includes single family, multi-family, and mixed use where more than 50% of the asset is residential. Subcategories of residential buildings have unique emissions performance profiles. Existing instruments such as local building codes, energy rating schemes (e.g. US Energy Star) and energy labeling schemes (e.g. Energy Performance Certificates in the EU) are leveraged as emission performance proxies (using the proxy methodology).
- Upgrade Projects: Commercial, residential and some other types of buildings can be eligible for Certification, if they achieve an emission reduction of 30%-50% (depending on bond term) from a baseline.
The criteria were developed by the Low Carbon Buildings Technical Working Group, which is detailed below.
The first green bond certified under the Low Carbon Buildings criteria was issued by the ANZ Bank in May 2015, with proceeds of A$600m allocated to green buildings, wind energy and solar energy loans in Australia, New Zealand and parts of Asia.
Over 80 Climate Certified Bonds linked to Low Carbon Buildings have been issued since then, representing approximately a quarter of all the bonds so far.
1. Read more about the Climate Bonds Standard
2. Email certification@climatebonds.net for more information
TECHNICAL WORKING GROUP - Members
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Investor Confidence Project
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Hermes Real Estate |
Better Buildings Partnership |
Clean Energy Finance Corporation |
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Investor Confidence Project |
Green Building Council Australia |
Verco |
UNEP Finance Initiative |
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International Energy Agency |
European Bank for Reconstruction
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International Finance Corporation |
thinkstep |
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Observatoire de l'Immobilier Durable |
Buildings Performance Institute Europe |
EEVS Insight |
Climate Strategy & Partners |
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Geophy |
Flux Consultants |
BRE Group |
European Commission |
Biographies of current members of the Technical Working Group are available here.
TECHNICAL WORKING GROUP - Past Members
- Tooraj Arvajeh, Chief Engineering Officer, BlocPower
- Thomas Boermans, Principal Consultant, Ecofys
- Catherine Bremner, Global Head of Sustainable Finance Solutions, ANZ
- Matthew Deegan, Director, Unity Finance
- Asari Efiong, Senior Policy Manager, European Commission
- Hilary Elliot, Operations Manager, NPL Centre for Carbon Measurement
- Jacob Halcomb, Coordinator, Sustainable Buildings and Construction Programme, UNEP
- Matthias Kopp, Head of Low Carbon Business & Finance Sector, WWF
- Niall McCarthy, Executive Director, Eureka Funds Management
- Bettina Redway, Deputy Treasurer, State of California
- Brian Rice, Investment Officer, CalSTRS
- Victor Rojas, Senior Manager - Clean Energy Finance, Environmental Defense Fund
- Yamina Saheb, Senior Energy Policy Analyst, Openexp
- Kirsten Spalding, Director, Ceres
- Robert Tromop, Energy Efficiency Consultant
- Paolo Zangheri, Scientific Support Officer, European Commission (Joint Research Centre)
Disclaimer: The Climate Bonds Standard Board operates legally as an advisory committee of the Climate Bonds Initiative Board and oversees the development of the Climate Bonds Standard. Neither the Climate Bonds Standard Board nor any organisation, individual or other person forming part of, or representing, the Climate Bonds Standard Board (together, "CBSB") accepts or owes any duty, liability or responsibility of any kind whatsoever to any issuer which wishes to apply for any of its bonds to be certified under the Climate Bonds Certification Scheme ("Scheme"), or to any issuer whose bonds may at any time be certified under the Scheme or to any other person or body whatsoever, whether with respect to the award or withdrawal of any certification under the Scheme or otherwise. All advice or recommendations with respect to any certification under the Scheme or otherwise that CBSB provides to the Climate Bonds Initiative Board is provided to it in an advisory capacity only and is not to be treated as provided or offered to any other person.