BEST PRACTICE FOR ISSUING GREEN BONDS

The document provides a framework for Brazilian livestock producers to issue certified green bonds aligned with the 1.5°C goal of the Paris Climate Agreement. It details a three-step issuance process—pre-issuance, issuance, and post-issuance—and defines eligible projects across three routes: whole production units, specific unit interventions, and supporting activities outside the farm. To achieve certification, issuers must meet specific screening indicators, including no land conversion since 2010 and demonstrated low-carbon animal management. The guide highlights Brazil's significant role as a global livestock producer and the potential for green bonds to reduce methane emissions, which account for nearly 65% of the country's agricultural emissions.

• The Climate Bonds Standard and Certification Scheme is a voluntary labelling system designed to align investments with the Paris Climate Agreement's goal of limiting global warming to 1.5 degrees celsius.
• In Brazil, meat production is a primary driver of greenhouse gas emissions, with methane from ruminant enteric fermentation representing nearly 65% of the agricultural sector's total emissions.
• The certification process for livestock bonds consists of three distinct phases: Pre-Issuance (preparing documents and frameworks), Issuance (engaging investors and listing bonds), and Post-Issuance (submitting verification and update reports).
• Eligible livestock projects are categorized into three routes: Route 1 covers the establishment or operation of the whole production unit; Route 2 focuses on specific interventions within the unit for mitigation or adaptation; and Route 3 covers supporting activities outside the farm, such as R&D for methane-reducing feed.
• To qualify for certification, livestock production must meet specific screening indicators, most notably a requirement of no land conversion since October 1, 2010, and evidence of low-carbon animal management.
• The Brazilian livestock sector has seen early adoption of sustainable debt, including a transition bond issued by Marfrig in 2019, as well as issuances from JBS and Fazenda da Toca.

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} }