The Carbon Trust has been approved as a verifier under the Climate Bonds Standard, an assurance framework for bonds claiming to address climate change mitigation and adaptation developed independently by the Climate Bonds Initiative.
The Climate Bonds Standard is backed by the Climate Bonds Standards Board, consisting of investor entities which collectively represent $34 trillion of assets under management.
Currently standards have been set for bonds raising funds for solar and wind power, low carbon buildings and bus rapid transit. Standards for bioenergy, agriculture & forestry and geothermal power are awaiting board approval following public consultation. Standards for low carbon transport and water are under public consultation.
Verifiers undertake due diligence on bonds to provide independent assurance that a bond is eligible against the requirements of the Climate Bonds Standard. The Climate Bonds Standards Board then reviews this assurance report.
The global transition to a low carbon economy is going to require very significant amounts of capital. To make this money available it is going to be critical to engage with the financial sector and develop investment products that have a genuine impact on climate change. Independent verification of bonds to external standards is a real step forward in this process, so we are pleased to be working with the Climate Bonds Initiative to help advance this important new area.
Morgan Jones, Associate Director - Certification
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