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The Climate Bonds Initiative outlines a framework to distinguish credible 'transition' activities from greenwashing, establishing five core principles for alignment with the Paris Agreement. It introduces a labeling system—distinguishing between 'Environmental Labels' for long-term low-carbon roles and 'Transition Labels' for short-to-medium term emission reductions—and categorizes economic activities based on their necessity post-2050 and their decarbonization pathways.