Climate Bonds Taxonomy

SEPTEMBER 2021

Introduction Contents

Institutional investors are increasingly indicating their

support for action to address climate change. However, Energy 2
there are too few tools to help ensure that their
investments are in credible, robust activities and are
making a significant impact, particularly for debt based Transport 8
investments. The market needs independent, science-
driven guidance on which assets and activities are
consistent with a rapid transition to a low-carbon economy. Water 11
The Climate Bonds Taxonomy identifies the assets,
activities and projects needed to deliver a low carbon
Buildings 12
economy. Consistent with the 2 goals of the Paris
Agreement. It has been developed based on the
latest climate science including research from the
Land use & marine 13
Intergovernmental Panel on Climate Change (IPCC)
and the International Energy Agency (IEA), and has
resources
benefited from the input of hundreds of technical
experts from around the world. It can be used by any
entity looking to identify which assets and activities,
Industry 15
and associated financial instruments, are compatible
with a trajectory to net zero by 2050.
Waste & pollution control 16
First released in 2013, the Climate Bonds Taxonomy is
regularly updated based on the latest climate science,
emergence of new technologies and sector specific Criteria. ICT 17

Using this document

A traffic light system has been adopted to indicate whether identified assets Automatically compatible
and projects are considered to be automatically compatible with a 1.5˚C
degree decarbonisation trajectory. Green Light is automatically compatible. Compatible if compliant
Orange Light is potentially compatible, depending on whether more specific with screening indicator
criteria are met. Red Light is incompatible. A Grey circle is used to indicate
where further work is required to determine which traffic light colour is Not compatible
appropriate for a specific sub-set of assets or activities.
More work required

The Taxonomy is the foundation used by the Climate Bonds Initiative Certification Criteria
to screen bonds to determine whether assets or projects underlying an Approved
investment are eligible for green or climate finance. Where detailed analysis
of a sector has been undertaken and specific eligibility Criteria have been
developed, bonds in that sector can be Climate Bonds Certified. This is
indicated via a blue ‘Climate Bonds Certification tick’. Where detailed sector
Criteria under development
based Criteria for Certification are still under development, this is indicated
by a yellow circle. In this case, bonds in this sector cannot yet be certified
under the Climate Bonds Standard.

Climate Bonds Initiative Taxonomy 1

 Energy
ELECTRICITY & HEAT PRODUCTION

Asset type Asset specifics Paris Screening indicator Certifiable

Agreement
compliant

SOLAR Generation Photovoltaic generation facilities Facilities shall have no more

facilities (onshore) than 15% of electricity
(power & generated from non-
heat) Concentrated solar power renewable sources
facilities (onshore)

Supply chain Manufacturing facilities wholly

facilities dedicated to onshore solar
energy development such as PV
cells & components, CSP dishes,
troughs & components etc

Dedicated storage, distribution,

installation, wholesale and retail

Infrastructure Dedicated transmission

infrastructure

Dedicated supporting
infrastructure including inverters,
transformers, energy storage
systems and control systems

WIND Generation Onshore wind farms

facilities
(power &
heat)

Supply chain Manufacturing facilities wholly

facilities dedicated to onshore wind energy
development such as wind turbines

Dedicated storage, distribution,

installation, wholesale and retail

Infrastructure Dedicated transmission

infrastructure

Dedicated supporting
infrastructure

GEOTHERMAL Generation Electricity generation facilities Direct emissions less than

facilities 100gCO2/kWh
(power &
heat)
Direct heat application such as
Geothermal Heat Pump (GHP)

Supply chain Manufacturing facilities wholly

facilities dedicated to geothermal
energy developments such as
geothermal turbines

Dedicated storage, distribution,

installation, wholesale and retail

Infrastructure Dedicated transmission

infrastructure

Dedicated supporting
infrastructure

Energy continues on page 3 ………>

Climate Bonds Initiative Taxonomy: Energy 2

 Energy
ELECTRICITY & HEAT PRODUCTION

Asset type Asset specifics Paris Screening indicator Certifiable

Agreement
compliant

BIO-ENERGY Facilities Facilities producing liquid (i) 80% GHG emission

producing biofuel, solid and gaseous reduction compared to fossil
biofuel, biomass for heating and fuel baseline
biomass, cogeneration
biogas AND
including fuel Facilities producing liquid
preparation biofuel, solid and gaseous (ii) Biofuel must be sourced
process biomass for electricity from a sustainable feedstock
facilities, production (the only timber feedstock
pretreatment allowed is waste wood)
facilities and Facilities producing biofuel for
biorefinery transport
facilities
(if ≥50%
biomass
based
products
produced for
energy use)

Generation Electricity generation facilities (i) Emissions of electricity

facilities such as biomass power station generated must be lower than
(power, heat 100gCO2 /kWh
& cooling)
AND

(ii) Biofuel must be sourced

from a sustainable feedstock
(the only timber feedstock
allowed is waste wood)

Heating facilities (ii) Emissions of biomass or

biofuel used must be 80%
Cooling facilities lower than fossil fuel baseline
and the energy efficiency
Combined Heat & Power
achieved must be at least
facilities
80%

AND

(ii) Biofuel must be sourced

from a sustainable feedstock
(the only timber feedstock
allowed is waste wood)

Supply chain Manufacturing facilities

facilities wholly dedicated to bioenergy
development

Dedicated storage, distribution,

installation and wholesale and
retail

Blending facilities

Infrastructure Dedicated transmission

infrastructure

Dedicated supporting
infrastructure

Energy continues on page 4 ………>

Climate Bonds Initiative Taxonomy: Energy 3

 Energy
ELECTRICITY & HEAT PRODUCTION

Asset type Asset specifics Paris Screening indicator Certifiable

Agreement
compliant

HYDROPOWER Generation Run of river In operation before 2020 power

facilities density > 5W/m2; or GHG
Impoundment emissions intensity of electricity
generated < 100gCO2e/kWh.
Pumped storage
Commencing operation in
2020 or after: power density
>10W/m2; or GHG emissions
intensity <50g CO2e/kWh

AND

Must perform an assessment,

based on recognised best
practice guidelines, of
environmental and social
risks and incorporate
measures to address risks

Only for pumped storage:

facility will not be charged with
carbon intensive energy OR
facility is contributing to a grid
which has at least 20% share
of intermittent renewables

Supply chain Manufacturing facilities wholly

facilities dedicated to hydropower devel-
opment such as hydro turbines
and components

Dedicated storage, distribution,

installation and wholesale and retail

Infrastructure Dedicated transmission

infrastructure

Dedicated supporting
infrastructure

MARINE Generation Offshore wind farms Fossil fuel back up can only
RENEWABLES facilities be used for restart capability
(power, heat Offshore solar farms and monitoring, operating
& cooling) or resilience measures in
Tidal and wave energy
the event of no power in the
generation facilities
system
Other marine electricity
generation facilities using ocean
thermals, salinity, gradients, etc

Heating or cooling facilities using Must achieve an 80%

ocean thermals reduction in gCO2e/kWh
compared to fossil fuel
alternative

Supply chain Manufacturing facilities wholly

facilities dedicated to marine renewable
energy development such as wind
turbines and platforms, vertical
and horizontal axis turbines, in-
stream generators, etc

Dedicated storage, distribution,

installation and wholesale and retail
Energy continues on page 5 ………>

Climate Bonds Initiative Taxonomy: Energy 4

 Energy
ELECTRICITY & HEAT PRODUCTION

Asset type Asset specifics Paris Screening indicator Certifiable

Agreement
compliant

MARINE Infrastructure Dedicated transmission

RENEWABLES infrastructure

Dedicated supporting
facilities, such as transmission
terminus and transformers,
grid connections, dedicated
facilities for supporting vessels,
equipment storage and onshore
assembly

FOSSIL FUELS Generation Coal or oil power without carbon

facilities capture and storage (CCS)

Coal or oil with carbon capture & CCS must capture 100% of
storage (CCS) GHG emissions

Coal or oil powered combine

heat and power (CHP)

Waste heat recovery from coal

or oil fuelled power generation

Gas power without carbon

capture & storage (CCS)

Gas power with carbon capture

& storage (CCS)

Gas powered combine heat and

power (CHP)

Waste heat recovery from gas

fuelled power generation

Mining and Coal mining or oil extraction,

extraction refining, processing or
production and associated
supply chain infrastructure

Gas extraction, refining,

processing or production
and associated supply chain
infrastructure

NUCLEAR Generation Power plants

facilities
Dedicated supporting
infrastructure

Mining Uranium mining

facilities

OTHER Generation Heat pumps using soil or air

facilities gradients
(heat)

Advanced Alternative fuel power plants

alternative
fuel power Supporting infrastructure
plants

Energy continues on page 6 ………>

Climate Bonds Initiative Taxonomy: Energy 5

 Energy
Transmission, distribution & storage

Asset type Asset specifics Paris Screening indicator Certifiable

Agreement
compliant

TRANSMISSION Infrastructure Construction, upgrading or a. Is a dedicated connection

& operation of: to a power production plant
DISTRIBUTION • Overhead lines (conductors eligible under one of the
and insulators) and pylons Climate Bonds sector criteria
• Transformers, reactors and (e.g. Solar)
substations b. Is a dedicated connection
• Underground cables to a power production
• Circuit breakers and plant operating under
switchgear the low carbon power
• Sub-stations, buildings, fences threshold (100g CO2/kWh)
and busbars c. The infrastructure is
• Fuses, circuit breakers, located on a system with a
disconnectors, reactors, grid factor at or below 100g
capacitors, transformers, CO2/kWh
voltage regulators and d. The infrastructure is
switchgear located on a system for
which at least 67% of its
added generation capacity
in the last 5 years falls
below the low carbon power
threshold

Interconnectors between One of the two systems is on

transmission systems a pathway to decarbonisation
as defined above c. and d.

Installation of T&D transformers Correspond to or comply

with the Tier 2 (2021)
requirements from EU
Regulation 548/2014 on the
eco-design of small, medium
and large power transform-
ers and, for medium power
transformers with highest
voltage for equipment
not exceeding 36 kV, with
AAA0 level requirements
on no-load losses set out in
standard EN 50588- 1, or
equivalent

Equipment and infrastructure

where the main objective is
an increase of the generation
or use of renewable electricity
generation

Equipment to increase the

controllability and observability
of the electricity system and
enable the development and
integration of renewable energy
sources. This includes:

Sensors and measurement

tools (including meteorological
sensors for forecasting
renewable production)

Energy continues on page 7 ………>

Climate Bonds Initiative Taxonomy: Energy 6

 Energy
Transmission, distribution & storage

Asset type Asset specifics Paris Screening indicator Certifiable

Agreement
compliant

Communication and control

(including advanced software
and control rooms, automation
of substations or feeders, and
voltage control capabilities to
adapt to more decentralised
renewable infeed)

Equipment to carry information

to users for remotely acting on
consumption

Equipment to allow for

exchange of renewable
electricity between users

STORAGE Infrastructure Batteries, capacitors, a. Is a dedicated connection

compressed air storage and to a power production plant
flywheels eligible under one of the
Climate Bonds sector criteria
Large scale energy storage (e.g. Solar)
facilities b. Is a dedicated connection
to a power production plant
operating under the low car-
bon power threshold (100g
CO2/kWh)
c. The infrastructure is
located on a system with a
grid factor at or below 100g
CO2/kWh
d. The infrastructure is lo-
cated on a system for which
at least 67% of its added
generation capacity in the
last 5 years falls below the
low carbon power threshold

Manufacture facilities dedicated

to any of the above

Climate Bonds Initiative Taxonomy: Energy 7

 Transport
Passenger, freight & supporting infrastructure

Asset type Asset specifics Paris Screening indicator Certifiable

Agreement
compliant

PRIVATE Vehicles Electric passenger & freight

PASSENGER vehicles
TRANSPORT
Hydrogen passenger & freight
vehicles

Other passenger vehicles, e.g. Vehicle meets universal

hybrid vehicles gCO2/p-km (passenger per
kilometre) threshold

Supply chain Dedicated manufacturing

facilities facilities for vehicles and key
components, such as batteries,
being used in eligible vehicles

Infrastructure Dedicated charging and

alternative fuel infrastructure
(when separate from fossil fuel
filling stations and garages)

New roads, road bridges, road

upgrades, parking facilities, fossil
fuel filling stations, etc

PUBLIC Trains Rolling stock and vehicles for

PASSENGER electrified public transport,
TRANSPORT such as electrified rail, trams,
trolleybuses and cable cars

Fossil fuel or hybrid vehicles or Passenger transport system

rolling stock meets universal gCO2/p-km
(passenger-kilometre) threshold

Biofuel vehicles

Buses Buses with no direct emissions

(electric or hydrogen)

Fossil fuel or hybrid vehicles Vehicle meets universal

gCO2/p-km (passenger-
kilometre) threshold

Biofuel vehicles

Supply chain Dedicated manufacturing facilities

facilities for rolling stock, buses or key
components such as batteries,
being used in eligible vehicles

Infrastructure Dedicated infrastructure for

electrified public transport

Dedicated product or supporting Eligible if the transport mode

infrastructure for fossil fuel or supported is eligible
hybrid vehicles or rolling stock according to one of the above

Dedicated charging and

alternative fuel infrastructure
(when separate from fossil fuel
filling stations and garages)

Passenger Biofuel vehicles

cars and
commercial
vehicles
Transport continues on page 9 ………>

Climate Bonds Initiative Taxonomy: Transport 8

 Transport
Passenger, freight & supporting infrastructure

Asset type Asset specifics Paris Screening indicator Certifiable

Agreement
compliant

PUBLIC Infrastructure Public walking and cycling

PASSENGER infrastructure and cycling schemes
TRANSPORT
Bus rapid transit systems

ROAD Lorries and Vehicles with no direct emissions

FREIGHT trucks (electric or hydrogen)

All other types of lorries or trucks

(e.g. biofuel-powered or hybrid
trucks)

FREIGHT Trains Rolling stock for electrified freight Fossil fuel freight must not be
RAIL rail more than 25% of the freight
transported (in tonne/km)

Rolling stock for non-electrified (i) Fossil fuel freight must

freight rail not be more than 25% of the
freight transported (in tonne/
km)

(ii) Transport meets universal

gCO2/t-km (tonne-kilometre)
threshold

Infrastructure All infrastructure for electrified

freight rail

All infrastructure for non- Eligible if the associated rail is

electrified freight rail eligible

CROSS ICT that improves asset utilisation, Must deliver substantial GHG
CUTTING flow and modal shift, regardless of emissions savings on either
transport mode (public transport a passenger/km or a tonne/
information, car-sharing schemes, km basis
smart cards, road charging
systems, etc)

Intermodal freight facilities

Terminals to improve journey times

Smart freight logistics

Multi-modal logistics hubs

Integration of transport and

urban development planning

AVIATION Aircraft Passenger aircraft Use of low GHG fuel (e.g.

solar, electric, high % of bio-
fuel), delivering substantial
reduction in gCO2e/passen-
Cargo aircraft ger or tonne/km

Infrastructure Dedicated manufacture

Supporting infrastructure

Supporting buildings See Buildings (pg.11)

Transport continues on page 10 ………>

Climate Bonds Initiative Taxonomy: Transport 9

 Transport
Passenger, freight & supporting infrastructure

Asset type Asset specifics Paris Screening indicator Certifiable

Agreement
compliant

SHIPPING Vessels Cargo ships Use of low GHG fuel (e.g.

hydrogen, ammonia, electric,
high % of biofuel), delivering
required emissions intensity
thresholds gCO2e/tonne/km

Zero emissions vessels Use of low GHG fuel (e.g.

hydrogen, ammonia, electric,
high % of biofuel), delivering
required emissions intensity
thresholds gCO2e/tonne/km

Passenger ships e.g. cruise ships Use of low GHG fuel (e.g. hydro-
or ferries gen, ammonia, electric, high %
of biofuel), delivering required
emissions intensity thresholds
gCO2e/passenger/km

Oil tankers or other ships solely

transporting coal or oil

Infrastructure Supporting infrastructure, e.g.

ports or manufacture

MISCEL- Vehicles Zero direct emissions

LANEOUS miscellaneous vehicles such
VEHICLES as waste collection vehicles or
construction vehicles

Supply chain Dedicated manufacturing

facilities facilities for vehicles and key
components, such as batteries,
being used in eligible vehicles

Infrastructure Dedicated charging and

alternative fuel infrastructure
(when separate from fossil fuel
filling stations and garages)

Climate Bonds Initiative Taxonomy: Transport 10

 Water
Supply management & wastewater treatment

Asset type Asset specifics 2 degree Screening indicator Certifiable

compliant

WATER Water Smart networks, early warning

INFRASTRUCTURE monitoring systems for storms, droughts,
floods or dam failure, water
quality or quantity monitoring
processes

Water Rainwater harvesting systems, No net GHG emissions are

Storage storm water management expected, and the issuer
systems, water distribution discloses the justification for
systems, infiltration ponds, this decision with supporting
aquifer storage, groundwater documentation
recharge systems, sewer
systems, pumps, sand dams OR

Water Drinking water treatment, water Negative net GHG emissions

treatment recycling systems, wastewater are expected, and the issuer
treatment facilities, manure and has estimated and delivered
slurry treatment facilities the GHG mitigation impact
Ecological retention system, that will be delivered over the
current force reduction operational lifetime of the
mechanisms project or asset
Water Rainwater harvesting systems,
distribution gravity fed canal systems,
pumped canal or water
distribution systems, terracing
systems, drip, flood and pivot
irrigation systems

Water Seawater desalination The average carbon intensity

desalination plants and brackish water of energy used to power the
desalination plants plant must be at or below
100g CO2/kWh over the
remaining lifetime of the asset

Flood Surge barriers, pumping

defences stations, levees, gates

Nature based Water storage from aquatic No net GHG emissions are
solutions ecosystems, aquifer storage, expected, and the issuer
snowpack runoff, groundwater discloses the justification for
recharge systems, riparian this decision with supporting
wetlands documentation

Flood defences by ecological OR

retention, restoration of riparian
Negative net GHG emissions
wetlands, relocation of assets
are expected, and the issuer
Drought defences by aquifer has estimated and delivered
storage, recharge zone the GHG mitigation impact
management, wetland that will be delivered over the
management operational lifetime of the
project or asset
Water treatment by natural
filtration systems, forest and
fire management

Stormwater management
by permeable surfaces,
erosion control systems,
evapotranspiration systems

Products Water saving technologies

Climate Bonds Initiative Taxonomy: Water 11

 Buildings
Commercial, residential & energy efficiency

Asset type Asset specifics 2 degree Screening indicator Certifiable

compliant

BUILDINGS Commercial Including offices, hotels, retail An emissions footprint in

buildings buildings, public buildings, the top 15% of emissions
educational buildings, performance in the local
healthcare buildings etc. market
Residential Private dwellings OR
buildings
Multifamily residential A substantial reduction
buildings in gCO2/m2 because of
upgrade or retrofit

Other Data centres See ICT (pg. 16)

building types
Stations and related buildings See Transport (pg.7)
for eligible transport

Industrial buildings See Industry (pg.14)

PRODUCTS Energy Facilities dedicated to See Industry (pg.14)

AND SYSTEMS efficiency manufacturing energy efficient
FOR BUILDING components
EFFICIENCY
Low carbon Low carbon and alternative
building building materials such as
materials alternatives to cement and
concrete

Urban development

BUILT Urban or Such as neighbourhood level The built environment or

ENVIRONMENT semi-urban works, upgrades and retrofits specific programme must
areas such as street lighting improve its emissions
performance (gCO2/m2)
substantially

URBAN Infrastructure District heating for residential Fed primarily by renewable

PLANNING and commercial applications energy

Building, maintaining or Significant resource

upgrading utility tunnels for and energy efficiency
cables or pipelines improvements

Other Urban policies and regulations Significant impact on urban

directed to climate change emissions
mitigation e.g. car-free areas

Climate Bonds Initiative Taxonomy: Buildings 12

 Land use & marine resources
Agriculture, husbandry, aquaculture & seafood

Asset type Asset specifics Paris Screening indicator Certifiable

Aligned
compliant

AGRICULTURE Crop and Agricultural land used for Demonstration of significant

(INCLUDING livestock the production of crops, carbon sequestration,
MIXED USE production agroforestry and silvopastoral reduction in emissions or
PRODUCTIVE systems, rearing livestock compatibility with ‘low
SYSTEMS) and interventions to enhance carbon agriculture’ targets
adaptation and resilience AND/OR adaptation and
resilience activities
Livestock

Agricultural production on
peatland

Infrastructure Machinery and equipment to Eligible if the agricultural

manage and cultivate eligible production adheres with the
land or livestock above

Associated management,
information systems and other
technologies

Drip, flood and pivot irrigation See Water (pg.10)

systems

COMMERCIAL Forests Plantations and natural forests No conversion from natural

FORESTRY & timber landscape and health of the
production forest is well managed

Timber production on peatland

Infrastructure Machinery and equipment to Eligible if the forest and

manage and cultivate eligible timber production adheres
forested land with the above

Associated management,
information systems and other
technologies

Pulp & paper Production facilities incorporating

efficient pulping process, bio-
refineries, use of recyclates

NATURAL Land Land remediation and clean up Habitat is appropriate for the
ECOSYSTEM location and is maintained in
PROTECTION good health
&
Natural ecosystem land
RESTORATION
(managed and unmanaged)

Infrastructure Machinery and equipment to Eligible if the related land is in

manage eligible ecosystems compliance with the above

Associated management and

information systems and other
technologies

Land Use continues on page 14 ………>

Climate Bonds Initiative Taxonomy: Land use & seafood 13

 Land use & marine resources
Agriculture, husbandry, aquaculture & seafood

Asset type Asset specifics Paris Screening indicator Certifiable

Aligned
compliant

FISHERIES AND Fisheries Wild fisheries and farmed fish Must hold certification for
AQUACULTURE sustainable management

Infrastructure Machinery and equipment to Eligible if the fishery or

manage and harvest in fisheries aquaculture operation
and fish farms e.g. fishing adheres with the above
vessels

On shore and off shore fish

processing and storage facilities
connected to eligible fisheries
and fish farms

Associated management,
information systems and other
technologies

SUPPLY CHAIN Supply chain Input supply systems for seed Facility is sustainable
ASSETS production, distribution and managed and certified as
MANAGEMENT access such

Primary processing and storage Eligible if agricultural produce

facilities for eligible agricultural complies with relevant
produce Criteria

Primary processing and storage Eligible if forest produce

facilities for eligible forestry complies with relevant
produce Criteria

Primary processing facilities Eligible if fish produce

and storage for eligible complies with relevant
fisheries and aquaculture Criteria
activities

Climate Bonds Initiative Taxonomy: Land use & seafood 14

 Industry
Industrial & energy intensive processes

Asset type Asset specifics Paris Screening indicator Certifiable

Aligned
compliant

CEMENT Cement Production facilities,

production incorporating dry processes,
facilities reduced clinker content

STEEL Steel and iron Production facilities and

production equipment, incorporating
facilities electric arc furnace, smelting
reduction, efficient casting
processes

BASIC Basic Production facilities

CHEMICALS Chemical incorporating lower carbon
production feedstocks and more efficient
processes

Other primary Various

production and
manufacturing
facilities

FUEL Biofuel See Bioenergy (pg.3) See Bioenergy (pg.3)

PRODUCTION production
facilities

Hydrogen fuel
production
facilities

CLEAN UP Carbon Facilities and products for clean-

scrubber up, such as treatment of exhaust
gases from industrial plants

Products dedicated to clean-up

or efficiency of fossil fuel energy

Carbon Facilities and products CCS has the ability to capture

Capture & dedicated to CCS 100% of GHG emissions
Storage (CCS)

OTHER Secondary Various

INDUSTRY & processing &
MANUFACTURING manufacturing

SUPPLY CHAIN Manufactur- Facilities dedicated to Eligible if dedicated to

ing facilities manufacturing key components an eligible asset type e.g.
for eligible facilities solar panel or wind turbine
manufacture

Facilities dedicated to Energy efficiency rating

manufacturing energy efficient amongst top performers in
appliances and equipment e.g. the market
fridges, cookers etc

Other supply Facilities dedicated to the Eligible if dedicated to an

chain storage, distribution or eligible asset type e.g. all
retail of eligible industrial or electric rail supply chain
manufactured products

Climate Bonds Initiative Taxonomy: Industry 15

 Waste and pollution control
Recycling, re-use & other waste managements

Asset type Asset specifics Paris Eligibility criteria Certifiable

Aligned
compliant

PREPARATION Facili- Facilities and assets Made from 100% recycled and recyclable
ties for with high recovery materials. Supports source segregation of
collection, rates of reusable or waste
sorting and recyclable material
material
recovery Collection of waste Collection vehicles must meet Transport
that is going to landfill Criteria

WASTE Waste Storage and bulking Dedicated to eligible waste processing asset(s)
STORAGE storage facilities downstream. Those downstream assets do
facilities not need to be certified but do need to meet
the criteria for that asset type. All waste stored
must be transferred to those assets

Collection vehicles Must meet Transport Criteria

RE-USE Facilities Facilities refurbishing The products are put back to their original
for the or repairing products use without any further pre-processing
re-use of or cleaning compo- required. For WEEE, the product is covered
materials nents or products for by ecolabelling scheme and only those
reuse in their original products meeting the three lowest energy
function use categories are eligible

RECYCLING Facilities Facilities for recycling The secondary raw materials (such as steel,
for the metals, plastics, glass aluminum, glass, plastics) cease to be waste
recycling of (except aggregate) and are sold to be used as secondary raw
materials and paper materials

BIOLOGICAL Anaerobic Facilities for the Total methane emissions <= 1285g CH4/
TREATMENT digestion production of biogas tonne of waste input. Woody waste must
FACILITIES facilities from green waste be segregated before or after processing
and sent to an eligible EfW or composting
plant. Monitoring, sampling and control of
the following is carried out in accordance
with PAS110 guidance. The solid and liquid
products are not landfilled and replace non-
waste materials in the market

Composting Facilities for the Zero measurable methane emissions.

facilities production of Monitoring, sampling and control is carried
compost from out in accordance with PAS100 guidance.
residual waste The resulting product is not landfilled and
replaces non-waste material in the market

WASTE TO Waste to Facilities for solid Only facilities outside the EU are potentially
ENERGY energy waste treatment eligible. Plant efficiency >= 25%; AND Bottom
plants (e.g. with production of ash recovery; AND >= 90% recovery of metal
incineration, electricity or heat as from ash; AND Average carbon intensity of
gasification, a by-product electricity and/ or heat over the life of the plant
pyrolysis <= waste management allowance; AND capacity
and of the plant does not exceed the calculated
plasma) residual waste at any time in the plant’s life

LANDFILL Landfill Projects to add gas Biogas from closed landfill facilities. Gas capture
with gas capture to existing, >= 75%; AND gas used to generate electricity and
capture closed landfill input to the natural gas grid or used as vehicle fuel;
facilities AND the landfill is not accepting further waste
(with the exception of restoration materials)

Landfill
without gas
capture

Climate Bonds Initiative Taxonomy: Waste and pollution control 16

 Waste and pollution control
Recycling, re-use & other waste managements

Asset type Asset specifics Paris Eligibility criteria Certifiable

Aligned
compliant

RADIOAC- Nuclear
TIVE WASTE waste
MANAGE- treatment
MENT
Nuclear
waste
disposal

WASTEWATER Water See Water (pg.10)

treatment

Information & communications technology

Networks, management & communication tools

Asset type Asset specifics 2 degree Climate Certifiable

compliant compatible
indicator

BROADBAND Broadband networks Fibre optic and cable networks

NETWORKS
Supporting infrastructure Such as internet exchange points

IT SOLUTIONS Connectivity Teleconferencing and telecommuting

software and service

Data hubs Including data storage centres

Supporting Such as hardware and manufacture of

infrastructure hardware

POWER Infrastructure, software Remote solutions for appliance power

MANAGEMENT and hardware for remote management, and load-balancing of
power management renewables

In situ power Including automatic switching, energy

management monitoring & data systems

Revisions and updates to the Climate Bonds Taxonomy

The Climate Bonds Taxonomy is a working document. It will be revised and updated periodically as developments are
made in the Climate Bonds Standard Sector Criteria and in international green bond policies. It will also be revised
when low carbon trajectories from prominent research institutions are released and updated.

Climate Bonds Initiative has an active role in developing international green bond policy and keeps up-to-date with
the latest climate science and low carbon development trajectories through its Technical Working Groups and
through external engagement and research.

Updates will be announced on the Climate Bonds Blog.

Climate Bonds Initiative © September 2021 www.climatebonds.net

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isation or debt instrument or investment product is for information purposes only. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content
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of the use of proceeds of a designated debt instrument. It does not reflect the credit worthiness of the designated debt instrument, nor its compliance with national or international laws. A decision to invest in
anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind, for any investment an individual or organisation makes, nor for any investment made by third parties on behalf of an individual or
organisation, based in whole or in part on any information contained within this, or any other Climate Bonds Initiative public communication.

Climate Bonds Initiative Taxonomy: Information & communications technology 17