A new version of the Climate Bonds Standard will be launched soon. The release of issue 3.0 is part of an ongoing development programme to support the use of climate bonds as an instrument in the transition to a more climate-friendly economy. In this article, we will explain which requirements will be subject to change and what the intentions behind the revision are.
The Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale investment in a low-carbon economy. The certification scheme, which is aligned with the Paris Agreement, provides assurance to investors that the projects associated with the certified bond contribute to keeping global warming below 2 degrees. For an introduction to the Climate Bonds Initiative please click here.
What is going to change in Version 3.0?
The revision is part of a wider Climate Bonds Initiative’s development programme that will affect the whole organisation. Version 3.0 extends the reach of underlying sector Criteria to three additional sectors: water infrastructure, forests and land conservation. Further Eligibility Criteria are being prepared covering bioenergy, hydro power, waste management, power grids, agriculture, energy efficient devices and industrial assets. The revision shall strengthen overarching Adaptation and Resilience (A&R) factors and update the core Climate Bonds green Taxonomy. The next iteration of the Taxonomy is planned for release in Q3.
Climate Bonds Certification under Standard V3 will give both issuers and investors assurance that a green debt product meets regulatory requirements for major global jurisdictions. Standard V3 will be compatible with the newly proposed EU Green Bond Standard (GBS), EU Taxonomy and the Green Bond Principles (GBP) as well as the latest market developments including guidelines adopted by India, ASEAN and Japan.
Here you can access the draft version. All the changes are marked in the document.
DQS – Your Partner for Certification
DQS is your partner for Climate Bonds certification. We schedule the verification without hassle, rely exclusively on experienced auditors, create added value with intelligent audit reports and guide you through the entire certification process. DQS has been approved to conduct Climate Bonds verification across the globe. Our certificate of approval is available for download here.
Click here to receive further information regarding the Climate Bonds Certification and the Certification Process. Contact us if you have any questions and register for our newsletter to receive regular updates on certification and standards.