Buildings Criteria

The Buildings Criteria, published by the Climate Bonds Initiative on December 7, 2023, establishes the eligibility requirements for buildings and built environment projects to achieve Climate Bonds Certification. The criteria focus on climate change mitigation, providing pathways for Use-of-Proceeds instruments, Assets, Sustainability-Linked Debt (SLD), and Entities to demonstrate climate integrity through absolute or relative emissions performance improvements.

• The Buildings Criteria provide two primary pathways for mitigation eligibility: the Absolute Performance Improvement Pathway and the Relative Performance Improvement Pathway. The Absolute pathway is for buildings and building portfolios, while the Relative pathway can be used for buildings, portfolios, and built environment projects.
• Under the Absolute Performance Improvement Pathway, Condition 1(a) requires buildings to meet an emissions performance target based on a trajectory that starts with the top 15% of buildings in a city and declines to zero GHG emissions by 2050. Targets are fixed at the midpoint of the bond term to avoid year-on-year volatility.
• Condition 1(b) allows for 'Term Conformance Bonds', where assets that do not currently meet the low carbon trajectory can be certified if their average performance over the bond term is equivalent to the target. This can be achieved through gradual improvement or front-loaded improvement in initial years.
• Condition 2 provides an interim solution for markets lacking emissions data by using approved proxies, such as building standards or rating schemes. Certification under this pathway is capped at a bond term of 10 years.
• The Relative Performance Improvement Pathway (Condition 3) focuses on retrofits, requiring a minimum emissions intensity improvement of 30% for bond terms of 5 years and 50% for terms of 30 years, with a linear trajectory for terms in between.
• New buildings constructed after 2023 must meet three additional requirements: no fossil fuels for heating, hot water, cooking, or non-emergency electricity generation; provision of electric vehicle (EV) charging infrastructure (100% for residential, minimum 25% for commercial); and a shift to all-electric systems.
• Mandatory reporting on Whole Life Carbon Assessment (WLCA) for new buildings begins on January 1, 2026. For commercial buildings, the operational phase is excluded from WLCA if operational targets already exist, limiting reporting to embodied carbon (Modules A, C, and D). For residential buildings, operational emissions (Module B) are included.
• The criteria establish specific thresholds for low-carbon steel and cement within WLCA reporting starting January 1, 2026. Steel emissions intensity must not exceed 2.0 kg/t steel and must follow a defined reduction pathway.
• Entity and Sustainability-Linked Debt (SLD) certifications are available for commercial building portfolios. 'Aligned' level requires meeting current and future performance targets to 2050, while 'Transition' level requires alignment by December 30, 2030.

APA

Climate Bonds Initiative (2023). Buildings Criteria. https://www.climatebonds.net/files/drupal-files/files/sector-criteria-buildings-criteria-v2-1-dec2023.pdf

Chicago

Climate Bonds Initiative. Buildings Criteria. 2023. https://www.climatebonds.net/files/drupal-files/files/sector-criteria-buildings-criteria-v2-1-dec2023.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Buildings Criteria |date=7 December 2023 |url=https://www.climatebonds.net/files/drupal-files/files/sector-criteria-buildings-criteria-v2-1-dec2023.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2023buildings, author = {{Climate Bonds Initiative}}, title = {{Buildings Criteria}}, institution = {Climate Bonds Initiative}, year = {2023}, month = dec, url = {https://www.climatebonds.net/files/drupal-files/files/sector-criteria-buildings-criteria-v2-1-dec2023.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }