Electrical Grids and Storage Criteria

The document outlines the development of certification criteria for electrical grids and storage to mobilise private capital for low-carbon infrastructure. It establishes that most modern grid investments are eligible if they support the integration of renewables or are part of a system on a trajectory toward decarbonisation, adopting the EU taxonomy as a baseline. It specifically excludes pumped hydropower and hydrogen storage from this sector's scope. The criteria also mandate that issuers demonstrate climate resilience by assessing physical risks and implementing mitigation measures over the assets' operational lifetimes.

• The Climate Bonds Initiative adopted the EU taxonomy as the baseline for the Grids and Storage Criteria, concluding that alternative methodologies were either impractical, overly stringent, or not robust.
• A grid system is considered on a trajectory to full decarbonisation if, over a rolling five-year period, either more than 67% of newly connected generation capacity is below 100 gCO2e/kWh or the average system grid emissions factor is below 100 gCO2e/kWh.
• The criteria for electricity storage are more conservative than the EU taxonomy; storage is only eligible if it is deployed within a grid that is on a trajectory towards decarbonisation, as storage can increase emissions if the charging electricity is more carbon-intensive than the electricity it displaces.
• Pumped hydropower storage and hydrogen storage are explicitly excluded from the scope of these specific criteria; pumped hydropower falls under the Hydropower Criteria, and hydrogen will be addressed in future comprehensive criteria.
• To achieve certification, bond issuers must prove they have identified physical climate risks, implemented risk-reduction measures, and established regular re-evaluation processes for the assets' operational lifetime.
• Global investment in electrical grids was approximately $275 billion in 2019, with the US and China accounting for $150 billion of that total.
• The IEA estimates that annual spending on electrical grids must reach USD 820 billion by 2030 to limit global warming to 1.5ºC, representing nearly a 300% increase over 2019 levels.

APA

Climate Bonds Initiative (2021). Electrical Grids and Storage Criteria. https://www.climatebonds.net/files/drupal-files/files/CBI_Background%20Doc_Grids%20and%20Storage_July%202021.pdf

Chicago

Climate Bonds Initiative. Electrical Grids and Storage Criteria. 2021. https://www.climatebonds.net/files/drupal-files/files/CBI_Background%20Doc_Grids%20and%20Storage_July%202021.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Electrical Grids and Storage Criteria |date=August 2021 |url=https://www.climatebonds.net/files/drupal-files/files/CBI_Background%20Doc_Grids%20and%20Storage_July%202021.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2021electrical, author = {{Climate Bonds Initiative}}, title = {{Electrical Grids and Storage Criteria}}, institution = {Climate Bonds Initiative}, year = {2021}, month = aug, url = {https://www.climatebonds.net/files/drupal-files/files/CBI_Background%20Doc_Grids%20and%20Storage_July%202021.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }