Electrical Grids and Storage Criteria

The Electrical Grids and Storage Criteria provide a framework for certifying bonds that finance the construction, upgrade, and operation of electricity transmission, distribution, and storage infrastructure. Eligibility is based on two main components: a mitigation component, which ensures assets contribute to greenhouse gas reduction or support renewable energy integration, and an adaptation and resilience component, which requires issuers to assess and mitigate physical climate risks. The criteria cover a wide range of assets, from high-voltage transmission lines to battery storage facilities, and include specific methodological notes for determining system eligibility based on emission factors or generation capacity. To maintain certification, issuers must provide pre-issuance, post-issuance, and annual reporting to demonstrate ongoing compliance with these standards.

• The scope of the Grids Criteria encompasses the entire electrical network, including high-voltage transmission, low-voltage distribution, and assets for monitoring and control such as demand-management systems and control hardware.
• The Storage Criteria apply to assets designed solely to store electrical energy and return it later, specifically including various battery types such as Lithium-ion, High temperature sodium-sulphur, Vanadium redox flow, Zinc-bromide hybrid flow, and Lead-acid, but excluding Pumped Hydropower Storage.
• Certain assets are automatically eligible for the mitigation component, including T&D transformers complying with EU Regulation 548/2014, equipment that increases the use of renewable electricity, and tools that improve the controllability and observability of the electricity system.
• For assets not automatically eligible, system eligibility can be determined using the average grid emission factor or by assessing added generation capacity over a rolling five-year period to see if it meets a threshold of 100g CO2e/kWh.
• To meet adaptation and resilience requirements, issuers must conduct a climate risk assessment covering hazards such as temperature rise, heavy rainfall, sea-level rises, increased lightning, winds, snow/ice, erosion, and wildfires.
• Certification requires a commitment to ongoing monitoring and reporting, with issuers providing pre-issuance, post-issuance, and annual reports to verify that assets continue to meet the eligibility criteria throughout the bond's duration.

APA

Climate Bonds Initiative (2021). Electrical Grids and Storage Criteria. https://www.climatebonds.net/files/drupal-files/files/Grids%20Criteria%20July%202021_draft%281%29.pdf

Chicago

Climate Bonds Initiative. Electrical Grids and Storage Criteria. 2021. https://www.climatebonds.net/files/drupal-files/files/Grids%20Criteria%20July%202021_draft%281%29.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Electrical Grids and Storage Criteria |date=August 2021 |url=https://www.climatebonds.net/files/drupal-files/files/Grids%20Criteria%20July%202021_draft%281%29.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2021electrical, author = {{Climate Bonds Initiative}}, title = {{Electrical Grids and Storage Criteria}}, institution = {Climate Bonds Initiative}, year = {2021}, month = aug, url = {https://www.climatebonds.net/files/drupal-files/files/Grids%20Criteria%20July%202021_draft%281%29.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }