Water Infrastructure Criteria under the Climate Bonds Standard

The Water Infrastructure Criteria under the Climate Bonds Standard provide a framework for certifying bonds that finance engineered, nature-based, or hybrid water infrastructure. To be eligible, assets must meet both mitigation and adaptation requirements. Mitigation is assessed based on net GHG emissions impact or, for desalination plants, a specific carbon intensity threshold of 100g CO2e/kWh. Adaptation and resilience are evaluated through a Vulnerability Assessment and Adaptation Plan, scored via a detailed scorecard covering allocation, governance, technical diagnostics, and specific requirements for nature-based solutions and desalination plants. The criteria exclude investments in fossil fuels, nuclear energy, mining, and water-driven energy like hydropower.

• For most water projects, mitigation eligibility requires that the issuer demonstrates either no net GHG emissions impact or a negative net GHG emissions impact relative to a business-as-usual baseline, using credible methodologies such as the UNFCCC’s Clean Development Mechanism (CDM).
• Desalination plants have a specific mitigation threshold: the average carbon intensity of the electricity used must be at or below 100g CO2e/kWh for every year of the bond's lifetime.
• Assets with an operational lifespan exceeding 20 years must undergo a Vulnerability Assessment and, if climate risks are identified, develop an Adaptation Plan.
• Eligibility for the Adaptation & Resilience component is determined by a Scorecard where the project must score at least 60% in all sections, including Allocation, Governance, Technical Diagnostics, and the Adaptation Plan Assessment.
• The criteria distinguish between 'natural features' (evolved biological/geochemical processes) and 'nature-based features' (human-designed components mimicking natural features), prioritizing the former where feasible.
• Certain sectors are explicitly excluded from certification under these criteria, including fossil fuel, nuclear, and mining sectors, as well as water-driven energy such as hydropower, wave, and tidal installations.

APA

Climate Bonds Initiative (2021). Water Infrastructure Criteria under the Climate Bonds Standard. https://www.climatebonds.net/files/drupal-files/files/Water%20Criteria%20Document%20Final_17Jan21.pdf

Chicago

Climate Bonds Initiative. Water Infrastructure Criteria under the Climate Bonds Standard. 2021. https://www.climatebonds.net/files/drupal-files/files/Water%20Criteria%20Document%20Final_17Jan21.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Water Infrastructure Criteria under the Climate Bonds Standard |date=January 2021 |url=https://www.climatebonds.net/files/drupal-files/files/Water%20Criteria%20Document%20Final_17Jan21.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2021water, author = {{Climate Bonds Initiative}}, title = {{Water Infrastructure Criteria under the Climate Bonds Standard}}, institution = {Climate Bonds Initiative}, year = {2021}, month = jan, url = {https://www.climatebonds.net/files/drupal-files/files/Water%20Criteria%20Document%20Final_17Jan21.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }