Climate Bonds Standard

The Climate Bonds Standard Version 2.1 is a certification framework designed to ensure that bonds finance projects consistent with a low carbon and climate resilient economy. It requires projects to pass a two-step eligibility test based on a global taxonomy and sector-specific technical criteria. The process involves mandatory pre- and post-issuance verification by independent third parties, strict 24-month timelines for fund allocation, and annual impact reporting. The standard is overseen by the Climate Bonds Standard Board and provides a 'Certification Mark' to signal climate integrity to investors.

• The Climate Bonds Standard employs a two-step eligibility process for projects and assets. First, they must be included in the Climate Bonds Taxonomy, which acts as an "initial screen for clear inclusions and exclusions for all sectors based off of the latest climate science and 2 degree scenarios". Second, they must satisfy "sector-specific technical criteria" detailed in Sector-Specific Criteria documents.
• Certification is divided into two mandatory phases: Pre-Issuance and Post-Issuance. Pre-Issuance certification focuses on the "assessment and certification of the bond issuer’s internal processes", including project selection and fund tracking. Post-Issuance certification must be completed "within one year of the bond’s issuance" and requires assurance that the bond conforms to all post-issuance requirements.
• Issuers must adhere to strict rules regarding the management of bond proceeds. Net proceeds must be allocated to nominated projects and assets "within 24 months of issuance of the bond". While funds are unallocated, they must be held in instruments that "do not include greenhouse gas intensive projects which are inconsistent with the delivery of a low carbon and climate resilient economy".
• The standard mandates annual reporting to bondholders and the Climate Bonds Standard Secretariat. These reports must include a list of allocated projects, descriptions, amounts disbursed, and the "expected impact of the Nominated Projects & Assets", utilizing both "qualitative performance indicators and, where feasible, quantitative performance measures".
• The certification process requires the engagement of an "Approved Verifier", an independent third party. For pre-issuance, the verifier performs either an "Assurance Engagement" or an "Agreed-Upon Procedures Engagement" (Readiness Assessment). Post-issuance, a mandatory Assurance Engagement is required to maintain the use of the Climate Bond Certification Mark.
• Programmatic Certification is available for issuers with large portfolios who plan "at least two issuances per year". This option reduces the verification burden for subsequent issuances, although the issuer must still engage a verifier annually to confirm ongoing conformance with post-issuance requirements.

APA

Climate Bonds Initiative (n.d.). Climate Bonds Standard. https://www.climatebonds.net/files/documents/Climate-Bonds_Climate-Bonds-Standard_V2-1_Jan-2017.pdf

Chicago

Climate Bonds Initiative. Climate Bonds Standard. n.d. https://www.climatebonds.net/files/documents/Climate-Bonds_Climate-Bonds-Standard_V2-1_Jan-2017.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Climate Bonds Standard |url=https://www.climatebonds.net/files/documents/Climate-Bonds_Climate-Bonds-Standard_V2-1_Jan-2017.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiativendclimate, author = {{Climate Bonds Initiative}}, title = {{Climate Bonds Standard}}, institution = {Climate Bonds Initiative}, url = {https://www.climatebonds.net/files/documents/Climate-Bonds_Climate-Bonds-Standard_V2-1_Jan-2017.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }