CLIMATE BONDS STANDARD

The Climate Bonds Standard version 4.0 provides a science-based framework for certifying Use of Proceeds (UoP) debt instruments, physical assets, non-financial legal entities, and sustainability-linked debt (SLD). It establishes rigorous pre- and post-issuance requirements, including mandatory verification by Approved Verifiers, the development of transition plans, and annual public disclosure of allocation and eligibility. The standard introduces a 'Certification Threshold' for entities and SLDs, requiring 90% of economic activities to be compliant. It also mandates 'Climate Safeguards' for parent groups, including commitments to net zero and the prohibition of fossil fuel expansion after January 1, 2023.

• The Climate Bonds Standard version 4.0 expands its certification scope beyond Use of Proceeds (UoPs) debt instruments to include assets, non-financial legal entities, and sustainability-linked debt (SLD) instruments.
• For Use of Proceeds (UoP) instruments, issuers must allocate net proceeds to nominated projects and assets within 24 months of issuance, though extensions up to 10 years may be granted with justification.
• Entity and SLD certification requires a 'Certification Threshold' where at least 90% of the entity's or the instrument's represented economic activities must be compliant with climate performance, delivery strategy, governance, and disclosure requirements.
• The standard defines two levels of certification for entities and SLDs: 'Aligned', where targets meet sector criteria at the time of certification, and 'Transition', where targets must align by December 31, 2030.
• Parent groups of certified entities or SLD issuers must adhere to 'Climate Safeguards', which include a public commitment to no expansion of fossil fuel activities after January 1, 2023, and a commitment to net zero emissions covering all material scope 1, 2, and 3 emissions.
• Certification maintenance for UoP instruments requires annual Update Reports containing mandatory allocation and eligibility reporting, while impact reporting is encouraged.
• The standard mandates that all verification engagements be conducted by 'Approved Verifiers' who must provide an unqualified assurance opinion based on international standards such as ISAE3000.
• Asset certification can be 'Static', where the composition does not change over a 12-month period, or 'Dynamic', where new assets can be added to a pool using a defined evaluation and selection process.

APA

Climate Bonds Initiative (2023). CLIMATE BONDS STANDARD. https://www.climatebonds.net/files/documents/Climate-Bonds_Climate-Bonds-Standard_V4-0_Apr-2024.pdf

Chicago

Climate Bonds Initiative. CLIMATE BONDS STANDARD. 2023. https://www.climatebonds.net/files/documents/Climate-Bonds_Climate-Bonds-Standard_V4-0_Apr-2024.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=CLIMATE BONDS STANDARD |date=April 2023 |url=https://www.climatebonds.net/files/documents/Climate-Bonds_Climate-Bonds-Standard_V4-0_Apr-2024.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2023climate, author = {{Climate Bonds Initiative}}, title = {{CLIMATE BONDS STANDARD}}, institution = {Climate Bonds Initiative}, year = {2023}, month = apr, url = {https://www.climatebonds.net/files/documents/Climate-Bonds_Climate-Bonds-Standard_V4-0_Apr-2024.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }