Standard

The Climate Bonds Standard and Certification Scheme is a FairTrade-like labelling scheme for bonds. Rigorous scientific criteria ensure that it is 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.

 

 

Low Carbon Buildings

What are the Building Criteria 

The greenhouse gas emissions of cities are very significant and 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. 

MAIN PAGES
Commercial buildings
Residential buildings
Upgrades

RESOURCES
Low Carbon Buildings Background Paper
Low Carbon Buildings Criteria Documents

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

SOME RECENT 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 and include office space, retail space, warehouse, etc. Each commercial subcategory has a unique emissions performance profile. 
  • Residential Buildings: buildings used for housing and 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: Non-building assets such as street lighting improvements can meet the performance criteria 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 listed 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 30 Climate Certified Bonds linked to Low Carbon Buildings have been issued since then; representing approximately a quarter of all the bonds so far.

Any questions on the Low Carbon Buildings Criteria?  Please contact Cory Nestor Cory.Nestor@climatebonds.net

 

Interested in Climate Bonds Certification?
1. Read more about the Climate Bonds Standard
2. Email certification@climatebonds.net for more information
 

 

 

 

 

 

TECHNICAL WORKING GROUP - Current Members

 

Investor Confidence Project
(Environmental Defense Fund)

Panama Bartholomy
Director

 

Hermes Real Estate
Tatiana Bosteels
Head of Responsible Investment

Better Buildings Partnership
Chris Botten
Programme Manager

Clean Energy Finance Corporation
Simon Brooker
Executive Director

Investor Confidence Project
(Environmental Defense Fund)

Luís Castanheira
Technical Director

Green Building Council Australia
Jorge Chapa
Head of Market Transformation

Verco
Robert Cohen
Technical Director

UNEP Finance Initiative
Annie Degen-Neuville
Special Advisor Long Term Finance and
Energy Efficiency Coordinator

International Energy Agency
John Dulac
Buildings Sector Lead -
Energy Technology & Policy

European Bank for Reconstruction 
and Development

Alexander Hadzhiivanov
Associate Director,
Sustainable Resource Investments

 

International Finance Corporation
Prashant Kapoor
Principal Industry Specialist

thinkstep
Johannes Kreissig
Vice President Building & Construction

Observatoire de l'Immobilier Durable
LoÏs Moulas
CEO

Buildings Performance Institute Europe
Oliver Rapf
Executive Director

EEVS Insight
Alex Rathmell
Director

Climate Strategy & Partners
Peter Sweatman
Chief Executive

Geophy
Teun van den Dries
Founder & CEO

Flux Consultants
Ché Wall
Director 

TWG Lead Specialist 

BRE Group
Alan Yates
Technical Director, Sustainability

European Commission
(Joint Research Centre)

Paolo Zancanella
Officer

 

Biographies of current members of the Technical Working Group are available here.

TECHNICAL WORKING GROUP - Past Members