Why is it important?
Investor demand for Green Bonds & Climate Bonds is strong, and will increase in line with the delivery of quality products into the market.
However, investor concerns about the credibility of green labelling are also growing. Standards, assurance & certification will be essential to improved confidence and transparency, and further strong growth in the market.
What is it?
The Climate Bonds Standard and Certification against that Standard is an easy-to-use tool that allows investors and intermediaries to assess the environmental integrity of bonds. The Standard is backed by the Climate Bond Standards Board of investor representatives, which collectively represent $34 trillion of assets under management.
The Climate Bonds Standard
The Climate Bonds Standards (v2.1) consists of a certification process, pre-issuance requirements, post-issuance requirements and a suite of sector-specific eligibility & guidance documents. The 2016 update of the Green Bond Principles have been fully integrated.
Download the full Climate Bonds Standard here.
HOW DOES IT WORK?
Certification is a simple process. The issuer contracts an approved verifier to confirm that the bond meets with all of the requirements in the standard.
Sector-Specific Eligibility Criteria
These spell out the technical criteria for sector-specific projects & assets