Electrical Grids and Storage Criteria

The Climate Bonds Standard 2021 Electrical Grids and Storage Criteria establish a framework for certifying investments in grid infrastructure. It highlights a funding gap, noting that USD 820 billion annual investment is needed by 2030 for net zero by 2050, while actual investment fell to USD 248 billion in 2020. Eligibility is based on a mitigation component—where some assets are automatically eligible and others depend on the system's decarbonisation trajectory (e.g., emissions below 100 gCO2e/kWh)—and an Adaptation & Resilience checklist.

• To achieve net zero by 2050, annual spending on electrical grids must reach USD 820 billion by 2030. However, global investment in this area has declined from USD 306 billion in 2016 to USD 248 billion in 2020.
• Eligible use-of-proceeds for grid and storage infrastructure include capital and operating expenditures for transmission and distribution lines, interconnectors, transformers, advanced metering infrastructure, grid flexibility measures, electricity storage facilities, and dedicated supporting infrastructure.
• Certain assets are automatically eligible under the mitigation component, including equipment that increases the generation or use of renewable electricity, tools for system controllability and observability (such as sensors, communication, and control software), and T&D transformers complying with Tier 2 (2021) EU Regulation eco-design requirements. Interconnectors are eligible if at least one connected system is on a sufficient decarbonisation trajectory.
• For assets not automatically eligible, certification depends on whether the system is on a 'sufficient pathway to decarbonisation'. This is defined as either having an average System grid emissions factor below 100 gCO2e/kWh (PCF basis) over a rolling five-year average, or having more than 67% of newly connected generation capacity below 100 gCO2e/kWh (PCF basis) over a rolling five-year period.

APA

Climate Bonds Initiative (2021). Electrical Grids and Storage Criteria. https://www.climatebonds.net/files/drupal-files/files/CBI-Grids_Storage_Criteria-02B.pdf

Chicago

Climate Bonds Initiative. Electrical Grids and Storage Criteria. 2021. https://www.climatebonds.net/files/drupal-files/files/CBI-Grids_Storage_Criteria-02B.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Electrical Grids and Storage Criteria |date=2021 |url=https://www.climatebonds.net/files/drupal-files/files/CBI-Grids_Storage_Criteria-02B.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2021electrical, author = {{Climate Bonds Initiative}}, title = {{Electrical Grids and Storage Criteria}}, institution = {Climate Bonds Initiative}, year = {2021}, url = {https://www.climatebonds.net/files/drupal-files/files/CBI-Grids_Storage_Criteria-02B.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }