BEST PRACTICE FOR ISSUING GREEN BONDS

This guide by the Climate Bonds Initiative outlines the application of the Climate Bonds Standard and Certification Scheme to the livestock sector, with a specific focus on the Brazilian market. It provides a framework for issuers to identify eligible livestock projects, follow a three-step certification process, and utilize scientific criteria to ensure investments align with the goal of limiting global temperature rise to 1.5°C.

• The Climate Bonds Standard and Certification Scheme is a voluntary labelling system for entities, investments, and debt instruments designed 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.
• In Brazil, meat production is a significant contributor to greenhouse gas (GHG) emissions, with methane from enteric fermentation in ruminants accounting for nearly 65% of the agricultural sector's total emissions.
• The process for issuing Certified Livestock Bonds consists of three primary stages: Pre-Issuance (preparing documents, identifying eligible uses of proceeds, 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).
• Eligible livestock projects are categorized into three routes: Route 1 focuses on the whole production unit (e.g., land acquisition, facilities); Route 2 focuses on specific interventions within the unit for mitigation (e.g., agroforestry, low-till systems) or adaptation (e.g., precision agriculture, habitat restoration); and Route 3 covers supporting activities outside the farm (e.g., R&D for methane-reducing feed or climate-resilient seeds).
• To achieve certification, issuers must meet specific livestock screening indicators, including M1 (no land conversion since 10/01/2010) and M3 (animal management). Animal management can be evidenced via a verified GHG inventory showing gradual reduction (M3.1) or by implementing low-carbon practices in manure, animal, soil, biomass, and energy management (M3.2).
• While sustainable debt in the livestock sector is small compared to forestry or energy, there are precedents for transition and green bonds, including a transition bond issued by Marfrig in 2019, as well as issuances from JBS (Green CRAs) and Fazenda da Toca (organic egg production).

APA

Climate Bonds Initiative (n.d.). BEST PRACTICE FOR ISSUING GREEN BONDS. https://www.climatebonds.net/files/drupal-files/files/Climate%20Bonds%20Livestock%20Brochure_27_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%20Livestock%20Brochure_27_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%20Livestock%20Brochure_27_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%20Livestock%20Brochure_27_March%202023.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }