Supporting Communications: FAQ Understanding the Hydropower Bond Criteria

This fact sheet explains the Climate Bonds Initiative's (CBI) Hydropower Bond Criteria, which provide a standardized framework for investors to identify hydropower projects aligned with the Paris Agreement. The criteria require projects to pass both a greenhouse gas (GHG) mitigation screen and an adaptation and resilience (A&R) assessment to qualify for certification as a Climate Bond.

• The Hydropower Criteria establish a two-part assessment process for eligibility: a Mitigation Criteria screen for greenhouse gas (GHG) emissions and an Adaptation & Resilience (A&R) assessment. Projects must pass both to be eligible for Climate Bonds.
• GHG emission thresholds for the Mitigation Criteria differ based on when a facility becomes operational. Facilities operational before 2020 must have a GHG footprint under 100g CO2e/ kWh or a power density under 5W/m2; those operational in 2020 or later must be under 50g CO2e/ kWh or 10W/m2.
• The Adaptation & Resilience (A&R) component uses the ESG Gap Analysis Tool to evaluate 12 specific environmental and social impact areas, including biodiversity, indigenous peoples, resettlement, and water quality. If gaps are found compared to international best practices, an Environmental and Social Action Plan must be implemented.
• Certification of a hydropower Climate Bond requires independent verification by an accredited assessor with specific industry expertise. These assessors must have at least 6 years of relevant sector experience and complete a 40-hour authorized training course and exam.
• The Hydropower Criteria specifically exclude certain types of emissions and economic factors. They do not cover indirect emissions from the construction value chain (such as material extraction and transport) or the economic viability of the projects.
• The criteria were developed through a science-based process involving a Technical Working Group (TWG) and an Industry Working Group (IWG), with oversight from the Climate Bonds Science Framework and the Climate Bonds Standard Board.

APA

Climate Bonds Initiative (n.d.). Supporting Communications: FAQ Understanding the Hydropower Bond Criteria. https://www.climatebonds.net/files/drupal-files/files/standards/Hydropower/Hydropower%20FAQs%20-%20March%202021.pdf

Chicago

Climate Bonds Initiative. Supporting Communications: FAQ Understanding the Hydropower Bond Criteria. n.d. https://www.climatebonds.net/files/drupal-files/files/standards/Hydropower/Hydropower%20FAQs%20-%20March%202021.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Supporting Communications: FAQ Understanding the Hydropower Bond Criteria |url=https://www.climatebonds.net/files/drupal-files/files/standards/Hydropower/Hydropower%20FAQs%20-%20March%202021.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiativendsupporting, author = {{Climate Bonds Initiative}}, title = {{Supporting Communications: FAQ Understanding the Hydropower Bond Criteria}}, institution = {Climate Bonds Initiative}, url = {https://www.climatebonds.net/files/drupal-files/files/standards/Hydropower/Hydropower%20FAQs%20-%20March%202021.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }