BEST PRACTICE FOR ISSUING GREEN BONDS

The document describes a voluntary labelling scheme designed to align debt instruments with the 1.5°C goal of the Paris Climate Agreement. It provides a three-step process for forestry bond issuance—pre-issuance, issuance, and post-issuance—and details the scientific criteria used to determine the eligibility of forestry projects. For the Brazilian market, it highlights the role of pulp and paper companies and the acceptance of the Brazilian Forest Certification Programme (Cerflor) as evidence of compliance.

• The Climate Bonds Standard and Certification Scheme is a voluntary labelling system for entities and debt instruments intended to align with the Paris Climate Agreement's goal of limiting global warming to 1.5 degrees celsius. As of January 2023, the scheme has been applied to hundreds of instruments totaling USD 260 billion equivalent.
• The issuance process for Certified Forestry Bonds consists of three primary stages: pre-issuance (preparing documents, identifying eligible proceeds, and engaging a verifier), issuance (obtaining the report, engaging investors, and listing on platforms like Nasdaq or IADB), and post-issuance (submitting a verification report within 12-24 months and providing annual update reports).
• To be eligible for certification, forestry projects must meet specific mitigation and resilience criteria. Mitigation requires that no natural landscape conversion has occurred since 2010 and that carbon stocks are maintained. Resilience requires a vulnerability and risk assessment, often evidenced by FSC or PEFC certification. In Brazil, the Brazilian Forest Certification Programme (Cerflor) is explicitly recognized as an eligible PEFC certification for proving compliance.

APA

Climate Bonds Initiative (n.d.). BEST PRACTICE FOR ISSUING GREEN BONDS. https://www.climatebonds.net/files/drupal-files/files/Climate%20Bonds%20Forestry%20Brochure_24_March%202023.pdf

Chicago

Climate Bonds Initiative. BEST PRACTICE FOR ISSUING GREEN BONDS. n.d. https://www.climatebonds.net/files/drupal-files/files/Climate%20Bonds%20Forestry%20Brochure_24_March%202023.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=BEST PRACTICE FOR ISSUING GREEN BONDS |url=https://www.climatebonds.net/files/drupal-files/files/Climate%20Bonds%20Forestry%20Brochure_24_March%202023.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiativendbest, author = {{Climate Bonds Initiative}}, title = {{BEST PRACTICE FOR ISSUING GREEN BONDS}}, institution = {Climate Bonds Initiative}, url = {https://www.climatebonds.net/files/drupal-files/files/Climate%20Bonds%20Forestry%20Brochure_24_March%202023.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }