BEST PRACTICE FOR ISSUING GREEN BONDS

This guide by the Climate Bonds Initiative outlines the standards and procedures for issuing Certified Forestry Bonds, with a specific focus on the Brazilian market. It details the Climate Bonds Standard's requirements for alignment with a 1.5°C warming limit, the three-step issuance process, and the specific scientific criteria used to identify eligible forestry projects and assets.

• The Climate Bonds Standard and Certification Scheme is a voluntary labelling system designed to align debt instruments, investments, and entities 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 Brazilian forestry sector presents significant opportunities for green bonds because more than 60% of the country's territory is covered by forests. Pulp and paper companies are the leading sub-sector in the Brazilian green bond market, following the first green bond issued by Suzano in 2016.
• The process for issuing Certified Forestry Bonds consists of three stages: Pre-Issuance (identifying eligible uses of proceeds, creating a green bond framework, and engaging a verifier), Issuance (obtaining the verification 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).
• Eligibility for forestry projects is based on specific screening indicators including plantation forestry, forest restoration, forest conservation, and sustainable forest management. Mitigation eligibility requires that no natural landscape conversion has occurred since 2010 and that carbon stocks are maintained. In Brazil, the Brazilian Forest Certification Programme (Cerflor) is cited as an eligible example of PEFC certification to prove 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} }