Empowering climate investment: the 2024 CBI’s Green Bond Dataset Methodology update

The Climate Bonds Initiative (CBI) has released an update on its Green Bond Database (GBDB) Methodology.

The GBDB Methodology is used to measure whether labelled issuanced is aligned with international climate targets, regulating the green use of proceeds (UoP) debt market, bolstering investor confidence and shaping policies to encourage climate investment. It is rooted in four foundational principles that guide its assessment framework: i) Green credentials based on mitigation and environmental impact; ii) Data-driven insights and scientific research; iii) Flexibility and practicality; iv) Minimum climate and environmental safeguards.

The 2024 update aims for enhancing market usability, being its key improvements the following: i) Inclusive and broadened green credentials now including transitional activities vital for the post-2050 low-carbon economy.; ii) Expanded sector coverage now including the Blue Economy & Marine resources; iii) Flexibility in the UoP, a 10% margin of flexibility is introduced to accommodate sectors lacking readily available metrics or requiring further assessment against a benchmark or proxy.