The development of taxonomies to identify green assets

This report by the Climate Bonds Initiative examines the role of taxonomies—systematic classifications of green assets—in supporting the growth of the green bond market. It discusses the challenges of identifying eligible assets, the emergence of national and regional guidelines, and the development of comprehensive frameworks by the European Commission and the International Organisation for Standardisation (ISO).

• A taxonomy is a systematic classification and definition of qualifying items that provides a list of eligible assets, thresholds, and metrics to guide issuers and investors in identifying 'climate-aligned', 'green', or 'sustainable finance' assets.
• The lack of consistent definitions for green assets creates barriers to the supply of green debt instruments and exposes the market to 'greenwashing', where misleading claims are made about the environmental profile of assets backing a bond.
• Current green bond guidance globally tends to rely on the Green Bond Principles (GBP) from the International Capital Market Association (ICMA) and the Climate Bonds Standard (CBS) from the Climate Bonds Initiative (CBI), though many still use broad categories rather than robust taxonomies.
• The European Commission is developing a comprehensive EU Taxonomy for Sustainable Finance based on six environmental objectives: climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy (waste prevention and recycling), pollution prevention and control, and protection of healthy ecosystems.
• 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, wholesale and retail trade, and construction.
• The International Organisation for Standardisation (ISO) is developing ISO 14030 to provide an international standard for the environmental performance of nominated green bond projects and assets, with an expected publication date in 2020.
• Various jurisdictions have implemented specific guidelines: the ASEAN Capital Markets Forum excludes fossil fuel power generation; the People Bank of China uses a Green Bond Endorsed Project Catalogue; and the MOEJ guidelines specify eligible sectors.

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} }