The development of taxonomies to identify green assets

The document discusses the necessity of 'taxonomies'—systematic classifications of green assets—to prevent greenwashing and provide clear guidance for issuers and investors. It highlights the transition from voluntary international guidelines, such as the Green Bond Principles, to more comprehensive regulatory frameworks, most notably the EU Taxonomy for Sustainable Finance. The report also details the development of the ISO 14030 international standard and provides examples of regional guidelines in ASEAN, China, and other markets.

• Taxonomies are essential for the green bond market to overcome hurdles related to the consistent identification of 'green' assets and to protect the market from 'greenwashing', which is defined as making misleading claims about the environmental profile of assets.
• Current green bond guidance globally tends to rely on the Green Bond Principles (GBP) and the Climate Bonds Standard (CBS), but often lacks robust definitions, typically relying on broad categories for asset eligibility.
• The European Commission is developing the EU Taxonomy for Sustainable Finance, the first comprehensive policymaker attempt at such a classification. It defines environmentally sustainable activities as those contributing to one of six environmental objectives—including climate change mitigation and adaptation—without significantly harming the other five.
• The Technical Expert Group (TEG) on Sustainable Finance has prioritised sectors for the EU Taxonomy based on emissions impact, including electricity generation, manufacturing, agriculture, forestry and fishing, transportation and storage, water supply, waste management, mining and quarrying, construction, and wholesale and retail trade.
• The International Organisation for Standardisation (ISO) is developing ISO 14030 to provide consistent eligibility rules and definitions of green for the market, with an expected publication date in 2020.
• Regional examples of green bond guidance include the ASEAN Green Bond Standards, which exclude fossil fuel power generation, and China's Green Bond Project Endorsed Catalogue, which provides detailed guidance on eligible projects across seven categories.

APA

Climate Bonds Initiative (2019). The development of taxonomies to identify green assets. https://www.climatebonds.net/files/documents/publications/Growing-green-bond-markets-The-development-of-taxonomies-to-identify-green-assets.pdf

Chicago

Climate Bonds Initiative. The development of taxonomies to identify green assets. 2019. https://www.climatebonds.net/files/documents/publications/Growing-green-bond-markets-The-development-of-taxonomies-to-identify-green-assets.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=The development of taxonomies to identify green assets |date=March 2019 |url=https://www.climatebonds.net/files/documents/publications/Growing-green-bond-markets-The-development-of-taxonomies-to-identify-green-assets.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2019development, author = {{Climate Bonds Initiative}}, title = {{The development of taxonomies to identify green assets}}, institution = {Climate Bonds Initiative}, year = {2019}, month = mar, url = {https://www.climatebonds.net/files/documents/publications/Growing-green-bond-markets-The-development-of-taxonomies-to-identify-green-assets.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }