GREEN BOND SCREENING METHODOLOGY

The Climate Bonds Initiative (CBI) employs a rigorous screening methodology to identify eligible green bonds for its database, requiring at least 95% of proceeds to align with the Climate Bonds Taxonomy. The taxonomy spans eight sectors, including energy and transport, while strictly excluding fossil fuel-related assets. Bonds certified under the Climate Bonds Standard are automatically included, and the CBI maintains a dynamic process for the re-classification of bonds based on updated information or evolving scientific criteria.

• The Climate Bonds Initiative (CBI) uses a three-step process to determine if a green bond is eligible for its database: first, identifying bonds labelled as green-themed; second, screening projects or assets for alignment with the Climate Bonds Taxonomy; and third, evaluating the allocation of proceeds to those aligned assets.
• To be included in the CBI Green Bond Database, a bond must allocate at least 95% of its proceeds to aligned green assets. Inclusion is denied if more than 5% of proceeds are used for working capital, social projects, assets not aligned with the Climate Bonds Taxonomy, or if there is insufficient information to make a determination.
• The Climate Bonds Taxonomy categorizes eligible assets into eight sectors: Energy, Transport, Buildings, Water management, Waste management & pollution control, Nature-based assets (including land use, agriculture & forestry), Industry & energy-intensive commercial, and Information technology & communications (ICT).
• The methodology explicitly excludes fossil fuel energy and any assets or processes that extend the life of fossil fuel assets. Specific examples of ineligible assets include 'clean coal', rail lines primarily transporting fossil fuels, and oil tankers.
• Bonds that are Certified under the Climate Bonds Standard—which uses scientific criteria consistent with the Paris Agreement's 2°C warming limit—are automatically included in the CBI Green Bond Database.
• The CBI maintains a process for re-classification where excluded bonds can be included if new information confirms alignment with the taxonomy, or if the methodology expands to accept new labelling equivalents. Conversely, included bonds may be removed if the issuer fails to fulfill criteria or applies proceeds to non-green assets.

APA

Climate Bonds Initiative (2018). GREEN BOND SCREENING METHODOLOGY. https://www.climatebonds.net/files/drupal-files/files/Climate-Bonds-Initiative_GreenBondMethodology_092018.pdf

Chicago

Climate Bonds Initiative. GREEN BOND SCREENING METHODOLOGY. 2018. https://www.climatebonds.net/files/drupal-files/files/Climate-Bonds-Initiative_GreenBondMethodology_092018.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=GREEN BOND SCREENING METHODOLOGY |date=September 2018 |url=https://www.climatebonds.net/files/drupal-files/files/Climate-Bonds-Initiative_GreenBondMethodology_092018.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2018green, author = {{Climate Bonds Initiative}}, title = {{GREEN BOND SCREENING METHODOLOGY}}, institution = {Climate Bonds Initiative}, year = {2018}, month = sep, url = {https://www.climatebonds.net/files/drupal-files/files/Climate-Bonds-Initiative_GreenBondMethodology_092018.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }