Electrical Grids and Storage Criteria

This guide outlines the eligibility criteria for electrical grids and storage projects to receive Climate Bonds Certification. It defines the scope of eligible assets (transmission, distribution, and storage), establishes mitigation requirements (including automatic eligibility for certain renewable-supporting equipment), and mandates a comprehensive climate adaptation and resilience assessment. It also provides methodologies for calculating grid emission factors and outlines the reporting obligations for bond issuers.

• The Grids and Storage Criteria define the scope of eligible assets to include the entire electrical network, from high-voltage transmission to low-voltage distribution, as well as assets for monitoring, control, and electrical energy storage. Specifically, the scope covers the construction, upgrade, and operation of transmission and distribution infrastructure, interconnectors, and electricity storage facilities, excluding Pumped Hydropower Storage, which is managed under separate Hydropower Criteria.
• Certain assets and activities are automatically eligible for the mitigation component of certification. These include the installation of T&D transformers meeting EU Regulation 548/2014 Tier 2 (2021) requirements (or equivalent), equipment designed to increase the generation or use of renewable electricity, and tools to improve the controllability and observability of the electricity system, such as sensors and advanced communication software.
• To achieve certification, issuers must satisfy an Adaptation and Resilience component by addressing physical climate risks over the asset's operational lifetime. This requires a formal assessment to identify hazards—such as temperature rise, heavy rainfall, sea-level rises, and wildfires—and the implementation of mitigation measures to ensure the infrastructure is 'fit for purpose' and does not cause significant harm to the resilience of the wider system.
• Supporting infrastructure is eligible for certification if it is 'wholly dedicated' (defined as 100%) to eligible T&D and storage assets. Examples of such infrastructure include buildings for housing maintenance equipment and vehicles used exclusively for surveying or repairing grid infrastructure, regardless of whether those vehicles are low or zero emissions.
• Certification requires a rigorous reporting cycle consisting of pre-issuance disclosure, post-issuance reporting on amendments, and annual reporting. Issuers must demonstrate that the system continues to meet eligibility criteria annually; if a system becomes ineligible, new T&D activities are no longer eligible until compliance is restored, though existing certifications are not withdrawn retroactively.

APA

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

Chicago

Climate Bonds Initiative. Electrical Grids and Storage Criteria. 2021. https://www.climatebonds.net/files/drupal-files/files/Grids%20Criteria%20May%202021_draft_LIVE.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Electrical Grids and Storage Criteria |date=May 2021 |url=https://www.climatebonds.net/files/drupal-files/files/Grids%20Criteria%20May%202021_draft_LIVE.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 = may, url = {https://www.climatebonds.net/files/drupal-files/files/Grids%20Criteria%20May%202021_draft_LIVE.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }