CLIMATE-BOND-STANDARD
Climate Bond Standard CBI ~$2.5T certified bonds.
Definition
Climate Bond Standard v4.0 (2023) framework: (1) Pre-issuance certification: Climate Bond Standard alignment, verification independent third-party assurance auditor + CBI confirmation. (2) Post-issuance certification: confirmation use-of-proceeds aligned committed framework via Annual Use of Proceeds Report. (3) Climate Bonds Taxonomy: eligibility criteria per sector ~100+ sub-sectors (Renewable Energy sub-sectors solar + wind + hydropower + geothermal + bioenergy, Low-Carbon Transport sub-sectors electric vehicles + public transit + rail + low-emission aviation/shipping, Buildings sub-sectors energy-efficient + zero-carbon, Water + Wastewater + Waste, Land Use + Marine + Industry), each sub-sector has detailed technical criteria (e.g., solar PV any grid + utility scale + distributed generation eligible, hydropower ICOLD verified hydro projects only). (4) Issuers benefits: 'Climate Bond Certified' label improves bond credibility + investor reach + potentially lower yield (Greenium ~5-10 bps cheaper than non-certified equivalents). (5) Verifiers: CBI-approved verifiers (SGS, DNV, Sustainalytics, ISS-ESG, Vigeo Eiris, CICERO, etc.). Adoption: ~$2.5T cumulative Climate Bonds issuance certified 2024 ($1T+ green bonds 2023 alone). EU Green Bond Standard 2023 (EuGB Regulation EU 2023/2631) building on similar concepts EU regulation level.
Origin
Climate Bonds Initiative founded 2009 in London by Sean Kidney + Nick Robins ; Climate Bond Standard v1.0 published 2011 ; v4.0 published 2023 ; ~$2.5T cumulative certified 2024.
Example in context
Iberdrola (Spanish utility renewable energy leader) issued ~EUR 5B+ Climate Bond Certified Green Bonds: use-of-proceeds financed solar PV + onshore + offshore wind farms Spain + UK + Brazil + USA, CBI Certified Pre-issuance + Annual Use of Proceeds Reports verified Sustainalytics, Greenium ~7 bps cheaper vs non-certified comparable.
Related terms
- Voluntary Carbon Market — complement carbon credits.