Electrical Grids and Storage Criteria

The 'Electrical Grids and Storage Criteria' document, published by the Climate Bonds Initiative in August 2021, establishes the technical eligibility requirements for grid-related assets and electricity storage projects to receive Climate Bonds Certification. It defines the scope of eligible infrastructure, sets mitigation and adaptation benchmarks, and provides a detailed checklist for assessing climate resilience to ensure investments contribute to a low-carbon and climate-resilient economy.

• The scope of the Grids and Storage Criteria covers the entire electrical network, including transmission and distribution systems from the highest voltage levels down to low voltage (LV) networks, as well as assets for monitoring, control, and electricity storage.
• Certain assets are automatically eligible for the mitigation component of certification, including T&D transformers complying with EU Regulation 548/2014 (Tier 2, 2021), equipment designed to increase renewable energy generation or use, and tools that improve the controllability and observability of the electricity system.
• For assets not automatically eligible, the document provides methodological notes for determining system eligibility based on a threshold of 100g CO2e/kWh. This can be demonstrated using average grid emission factors from sources like the International Energy Agency (IEA) or by calculating added generation capacity over a rolling five-year period.
• Certification requires a mandatory Adaptation and Resilience component. Issuers must use a specific checklist to identify physical climate hazards—such as temperature rise, sea-level rises, and wildfires—and demonstrate that the investment is 'fit for purpose' by enhancing systemic resilience without causing significant harm.
• Supporting infrastructure, such as buildings for maintenance equipment or vehicles for surveying grid infrastructure, is automatically eligible if it is 'wholly dedicated' (defined as 100%) to eligible T&D and storage assets.
• The certification process involves a rigorous reporting cycle including pre-issuance disclosure, post-issuance reporting on amendments, and annual reporting to ensure the system continues to meet eligibility thresholds 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} }