Climate Bonds Standard

The Climate Bonds Standard Version 3.0, published by the Climate Bonds Initiative in December 2019, provides a science-based framework for certifying green bonds, loans, and other debt instruments. It ensures that these investments are aligned with the goals of the Paris Climate Agreement and the Green Bond and Green Loan Principles, utilizing a rigorous process of pre- and post-issuance verification and annual reporting to prevent 'greenwash'.

• Certification under the Climate Bonds Standard confirms that a debt instrument is fully aligned with the Green Bond Principles and/or Green Loan Principles, uses best practice for internal controls, tracking, reporting, and verification, and finances assets consistent with the goals of the Paris Climate Agreement.
• The standard employs a two-phase certification process: Pre-Issuance Certification, which assesses internal processes and selection criteria before the bond is issued, and Post-Issuance Certification, which must be completed within 24 months of financial close to confirm the actual allocation of proceeds.
• To maintain certification, issuers must provide an Update Report at least annually while the bond remains outstanding. This report consists of three types: mandatory Allocation reporting, mandatory Eligibility reporting (where relevant), and encouraged but non-mandatory Impact reporting.
• The standard utilizes a Climate Bonds Taxonomy and specific Sector Eligibility Criteria to determine if projects are 'low-carbon and climate resilient'. As of December 2019, criteria were available for wind, solar, geothermal, marine renewable energy, bioenergy, low carbon buildings, low carbon transport, water infrastructure, forests, land conservation, and waste management.
• Independent verification by an Approved Verifier is mandatory for both pre- and post-issuance certification. Verifiers must provide an assurance report or a report of factual findings based on agreed-upon procedures.
• Programmatic Certification is available for frequent issuers with large portfolios of eligible assets, allowing for greater flexibility and a reduced verification burden for subsequent bonds within the program, provided that annual verification is maintained.
• Eligible debt instruments for certification include a wide range of structures such as standard use of proceeds bonds, revenue bonds, project bonds, securitised bonds, convertible bonds, Sukuk, Schuldschein, loan facilities, commercial paper, and green deposits.

APA

Climate Bonds Initiative (2019). Climate Bonds Standard. https://www.climatebonds.net/files/documents/Climate-Bonds_Climate-Bonds-Standard_V3_Dec-2019.pdf

Chicago

Climate Bonds Initiative. Climate Bonds Standard. 2019. https://www.climatebonds.net/files/documents/Climate-Bonds_Climate-Bonds-Standard_V3_Dec-2019.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Climate Bonds Standard |date=December 2019 |url=https://www.climatebonds.net/files/documents/Climate-Bonds_Climate-Bonds-Standard_V3_Dec-2019.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2019climate, author = {{Climate Bonds Initiative}}, title = {{Climate Bonds Standard}}, institution = {Climate Bonds Initiative}, year = {2019}, month = dec, url = {https://www.climatebonds.net/files/documents/Climate-Bonds_Climate-Bonds-Standard_V3_Dec-2019.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }