Transport BEST PRACTICE FOR ISSUING GREEN BONDS

This guide by the Climate Bonds Initiative outlines the standards and certification process for issuing green bonds in the transport sector, with a specific focus on the Brazilian market. It details the requirements for project eligibility, emission thresholds, and the multi-step certification process designed to align investments with the 1.5°C goal of the Paris Climate Agreement.

• The Climate Bonds Standard and Certification Scheme is a voluntary labelling system for entities 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, the transport sector represents 10% of the third most financed taxonomy category through green bonds. By December 2021, only four green-labelled issuances were solely allocated to the transport sector, while seven others had partial allocations.
• The certification process for transport sector bonds consists of three main 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).
• Eligible transport projects include zero direct emissions vehicles for passenger rail, public road transport, passenger cars, commercial vehicles, and waste collection, as well as dedicated low-carbon infrastructure such as cycle lanes and charging points. To be eligible, fossil fuel transport must account for less than 25% of the cargo or rolling-stock, and vehicles powered exclusively by biofuels are excluded due to monitoring complexities.
• Specific emission thresholds are used to determine eligibility: passenger transport is limited to 50gCO2 per p-km until 2026 (after which only zero-emission is allowed), and freight transport is limited to 25gCO2 per t-km until 2030, 21gCO2 per t-km until 2050, and 18gCO2 per t-km after 2050.

APA

Climate Bonds Initiative (n.d.). Transport BEST PRACTICE FOR ISSUING GREEN BONDS. https://www.climatebonds.net/files/drupal-files/files/Climate%20Bonds%20Transport%20Brochure_21%20March%202023_EN.pdf

Chicago

Climate Bonds Initiative. Transport BEST PRACTICE FOR ISSUING GREEN BONDS. n.d. https://www.climatebonds.net/files/drupal-files/files/Climate%20Bonds%20Transport%20Brochure_21%20March%202023_EN.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Transport BEST PRACTICE FOR ISSUING GREEN BONDS |url=https://www.climatebonds.net/files/drupal-files/files/Climate%20Bonds%20Transport%20Brochure_21%20March%202023_EN.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiativendtransport, author = {{Climate Bonds Initiative}}, title = {{Transport BEST PRACTICE FOR ISSUING GREEN BONDS}}, institution = {Climate Bonds Initiative}, url = {https://www.climatebonds.net/files/drupal-files/files/Climate%20Bonds%20Transport%20Brochure_21%20March%202023_EN.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }