Buildings Criteria

The Buildings Criteria provide a framework for certifying Use-of-Proceeds instruments, assets, entities, and Sustainability-Linked Debt based on their emissions performance. Eligibility is determined through two primary pathways: an Absolute Performance Threshold (using city-specific trajectories or approved proxies) and a Relative Performance Improvement pathway (requiring 30-50% emissions reductions for retrofits). New buildings constructed after 2023 face stricter requirements, including a total ban on fossil fuels for heating, hot water, and cooking, and mandatory infrastructure for electric mobility. Starting January 1, 2026, new buildings must also report on Whole Life Carbon Assessments (WLCA), with specific emissions thresholds for steel and cement. The criteria also define certification levels for entities and sustainability-linked debt, categorizing them as either 'Aligned' or 'Transition' based on their adherence to low-carbon trajectories.

• Eligibility for certification is divided into two main routes: the Absolute Performance Improvement Pathway and the Relative Performance Improvement Pathway.
• Under the Absolute Performance Threshold (Condition 1), emissions targets are calibrated to the top 15% of buildings in a specific city and follow a linear trajectory to reach zero carbon emissions by 2050.
• For bonds certified under the absolute performance threshold, the specific target is determined by the point where the midpoint of the bond term intersects the emissions performance trajectory.
• In markets lacking reliable emissions data, Condition 2 allows the use of approved proxies, such as building standards or rating schemes, though these certifications are capped at a 10-year bond term.
• The Relative Performance Improvement pathway (Condition 3) requires a minimum emissions intensity reduction of 30% for bond terms of 5 years, increasing linearly to 50% for bond terms of 30 years.
• New buildings constructed after 2023 must be fully electrified, prohibiting fossil fuels for heating, hot water, cooking, or non-emergency on-site electricity generation.
• New buildings with on-site parking must provide electric vehicle (EV) charging infrastructure for 100% of parking in residential buildings and at least 25% in commercial buildings.
• Starting January 1, 2026, new buildings must report a Whole Life Carbon Assessment (WLCA) following EN 15978 or international equivalents, including Scope 3 emissions.
• For new buildings, low-carbon steel must have an emissions intensity that is never above 2.0 kg/t steel and must reduce over time according to a specified pathway.
• Entity and Sustainability-Linked Debt (SLD) certifications are available for commercial building portfolios and are categorized as 'Aligned' (meeting current targets) or 'Transition' (aligning 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} }