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.

 

 

Taxonomy

The Climate Bonds Taxonomy provides broad guidance for prospective green bond and climate bond issuers and investors. 

 

Guided by the Climate Science Advisory Panelthe aim of the Taxonomy is to encourage common definitions across global markets, in a way that supports the growth of a cohesive thematic bond market. 

 

 

 

 

CONTEXT 

 

The Climate Bonds Initiative works to accelerate the transition to a low-carbon economy by mobilising the largest capital market of all — the $100 trillion bond market — for climate change solutions. Our work aims to reduce market friction for green investments. 

 

A large portion of institutional investors have indicated their support for action to address the negative impacts of climate change. However, while mechanisms already exist for credit ratings, when it comes to environmental criteria investors currently have too few tools to help ensure that their investments are really making a significant impact. 

 

Investors need independent, expert led guidance on which investments are part of a low-carbon economy. This will ease decision making and focus attention on credible climate change solution opportunities. The easier it is to use, the faster a market can grow. 

 

The Climate Bonds Taxonomy has been designed to be consistent with the Intergovernmental Panel on Climate Change (IPCC) AR5 report for both the emissions signature of a low-carbon economy required to avoid dangerous climate change and the selection of technologies and practices consistent with that signature. Wherever possible the Taxonomy references existing standards.  

 

The Taxonomy is intended for broad guidance only. Detailed eligibility is required for certification, and these are being developed by Climate Bonds Standards expert committees. 

 

Download the full version of the Taxonomy here. For further information contact certification@climatebonds.net