Climate Bonds Standard

Managed by the Climate Bonds Initiative, the Label aims to limit rising temperatures in line with the Paris Agreement by facilitating the recognition of certified "Green Bonds" with high quality standards that actually use their proceeds to combat global warming.

Generalities

Label	Climate Bonds Standard
Nationality	English - Europe
Management	Label issued and managed by the Climate Bond Initiative, a project launched during COP15 in Copenhagen
Label Type	Climate/environment theme
Website	https://www.climatebonds.net/certification
Market	World Label
Products	451 at the end of June 2022
Links to funds	https://www.climatebonds.net/certification/certified-bonds
Criteria	https://www.climatebonds.net/climate-bonds-standard-v3
Periodicity	12 months

Detail data

Description	In December 2010, the Climate Bonds Initiative launched the Climate Bond Standard and Certification Scheme to help both the investment community and governments prefer fixed income investments as solutions to climate change.
Genesis and development	The Climate Bonds Initiative sees its formal launch in 2009 following COP15 in Copenhagen and was born with only a registered staffer. In 2010 there is the development of the Climate Bond Standard and Certification Scheme followed by the first public version of the Climate Bond Standard launched in 2011.
Goals	CBI's goals are to provide assurance to investors on the environmental integrity of climate bonds; to ensure governments have an easy-to-use tool for choosing investments; and to foster growth in investor demand for climate-related investment opportunities.
Promoters and administrators	The label was created by the Climate Bonds Initiative, launched in 2009 following COP15 in Copenhagen by the International Network for Sustainable Financial Markets with the intent of promoting the use of long-term debt to finance a rapid global transition to a low-carbon economy. The Climate Bonds Initiative also operates as a stand-alone project supported by the Carbon Disclosure Project.
SRI Approach	To obtain the label, products must meet 100 percent of the eligibility criteria for the product sector.
Mandatory criteria	The mandatory criteria for obtaining certification are called "sectoral" criteria and specify which assets and infrastructure can be financed with instruments that have received Climate Bonds certification. The criteria are derived from the Climate Bonds Taxonomy and were developed for the sectors of wind energy, solar energy, geothermal energy, marine renewable energy, low-carbon buildings, low-carbon transportation, water infrastructure, forests, bioenergy, hydropower, waste management, and natural water resources.
Additional criteria	There are no additional criteria.
Allocation process	The process of awarding certification requires 4 steps: a bond information form, the application and certification agreement, the applicant's selection of an external auditor, chosen from the list of auditors, to certify that the projects and activities to be financed with bond proceeds are eligible under the Climate Bond Standard and that the applicant has established internal processes and controls to manage the bond proceeds, and finally, the applicant should create a Green Bond Framework that describes how the requirements of the Climate Bond Standard will be met by the issuer for the relevant bond.
External certification	The applicant will be required to provide annual reports to the Climate Bond Secretariat throughout the life of the bond. When possible, these annual reports will be posted on the website.
Focus on transparency	The Bond issuer must follow internationally recognized guidelines/standards such as the Green Bond Principles to illustrate its commitment to transparency and disclosure of funded projects.
Focus on periodic checks	For annual reports, it will not be necessary to hire an auditor since the audits part has already been done and their purpose is only to provide confirmation that the bond is still in compliance with the requirements of the Climate Bond Standard.
Related parties	Climate Bond Initiative is an initiative from the international Network for Sustainable Financial Markets that operates as a stand-alone project supported by the Carbon Disclosure Project.

Climate Bonds Standard

Generalities

Detail data

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