Green Project Mapping - International Capital Market Association

PrinciplesPrinciplesGreen Project MappingJune 2021

Green Project Mapping – June 2021High-Level Mapping to GBPEnvironmental Objectives andother Green ClassificationsIntroductionThe Green Bonds Principles (GBP) are designed topromote the transparency and integrity needed to increasecapital allocation to Green Projects. The capital marketsare seeking greater clarity on Green Project eligibility withreference to their contribution to the GBP’s environmentalobjectives, as well as their alignment with other greentaxonomies & classifications and related environmentalstandards.This document aims to provide a broad frame of referenceby which issuers, investors, underwriters and other bondmarket participants can relate and evaluate the benefitsand contribution of the GBP’s Green Project categories toits own stated five environmental objectives (i.e. ClimateChange Mitigation, Climate Change Adaptation, NaturalResource Conservation, Biodiversity Conservation, andPollution Prevention and Control). It also provides a basisfor comparison to other green taxonomies and classificationsystems currently used in the market.The mapping complements the GBP in promoting greenfinance through the debt capital markets. The GBP do notpromote a taxonomy or environmental standard but providean indicative list of the most commonly used types of GreenProject categories supported or expected to be supportedby the green bond market.While the GBP do not take a position on which greentechnologies, standards, claims or declarations are optimalfor environmentally sustainable benefits, this is an effort tocompare various approaches in the market. The documentmay be considered alongside other documents publishedin the Principles’ Resource Centre, particularly: Green,Social and Sustainability Bonds: A High-Level Mapping tothe Sustainable Development Goals as well as the variousguidance notes on impact reporting.

Green Project Mapping – June 2021Green Project categories andenvironmental objectivesGreen Project categories and variousclassification systemsThe GBP recognise several broad categories of eligibleGreen Projects which contribute to one or more of thefive high-level environmental objectives: Climate ChangeMitigation, Climate Change Adaptation, Natural ResourceConservation, Biodiversity Conservation, and PollutionPrevention and Control.Table II High-level Equivalences Across VariousClassification Standards (See Annex B) provides a highlevel comparison across various classification systems ofbroad market use. It is based on the core green aspectsand facilitates the comparison of various systems to eachof the GBP-objectives. The table shows how differentclassification systems use different terminology, but it doesnot determine eligibility, benchmarks, metrics or targetsfor each classification, and green eligibility may varydepending on sector and geography.Table I Mapping the contribution of GreenProject categories to the Green Bond Principles’environmental objectives (see Annex A) provides amapping of GBP-eligible project categories to GBPenvironmental objectives based on their most commonlyobserved contributions. The Green Bond Principlesurge issuers to clarify the expected significance of suchcontributions in the use of proceeds section of the GreenBond Information Template.Clearly, such attributions are indicative. The relevantobjectives and their relative contributions will be projectspecific, and projects may also be deemed to contributeto various objectives not necessarily with a given priorityamong them. The assessment is based on the issuers’judgement.It is important to emphasise that these tables are meant toserve as a reference and that projects should be assessedon their distinct merits. Alignment with one or more ofthe other classification systems does not automaticallyensure Green Project eligibility or alignment with the GBP.It is also important to note that relevant objectives andrelative contributions are entirely project specific and mayvary depending on geography. The GBP recommend thatissuers acquire an external review of the Green Projects’eligibility and environmental impact.A common understanding of what qualifies as aGreen Project and how these contribute positively toenvironmental objectives would help investors, issuers andbanks seeking opportunities for green investing acrossmultiple jurisdictions and enhance market efficiency andredirect capital flows to more sustainable investmentopportunities.DISCLAIMERThe information in this document has been provided by third-party sources and is intended for general information only (the “Information”), and is notintended to be and should not be relied upon as being legal, financial, investment, tax, regulatory, business or other professional advice. ICMA and theGreen Bond Principles are not responsible for the accuracy, reliability, currency or completeness of the Information. ICMA and the Green Bond Principlesdo not represent nor warrant that the Information is accurate, suitable or complete and neither ICMA, its employees or representatives, nor the GreenBond Principles or its members shall have any liability arising from, or relating to its use.

Green Project Mapping – June 2021Annex ATable I: Mapping of the GBP-project categories to GBP-environmental objectivesGBP - Environmental objectivesGBP-project categoriesClimate changemitigationClimate changeadaptationRenewable energyEnergy efficiencyPollution preventionand control projectsEnvironmentallysustainable managementof living natural resourcesand land useTerrestrial and aquaticbiodiversity conservationprojectsClean transportationSustainable water andwaste water managementClimate changeadaptation projectsEco-efficient and/orcircular economyadapted products,production technologiesand processesGreen buildingsContribution to ral resourceconservationPollutionprevention andcontrol

Green Project Mapping – June 2021Annex BTable II: High level equivalence across classification standardsGBP-project categoriesChina Green Bond EndorsedProject Catalogue 2020Renewable energyClean energyCBIEnergy generation,transmission andstorageMDB-IDFC(climate changemitigation only)EU Taxonomy(economic activities below maycontribute significantly to oneor more of 6 EU environmentalobjectives)Renewable energyEnergyEnergy efficienttransmission anddistribution systemsVarious activities, including informationand communication and professional,scientific and technical activitiesWasteWater supply, sewerage, wastemanagement and remediationAgriculture, forestryand land useForestryAfforestation andreforestation,and biosphereconservationEnvironmental protection andrestoration activitiesEnergy efficiencyEnergy efficiency improvementPollution prevention and controlPollution prevention and treatmentIntegrated utilisation of resourcesEnvironmentally sustainablemanagement of living naturalresources and land useGreen agricultureEcological agricultureTerrestrial and aquatic biodiversityconservationEcological protection and constructionClean transportationGreen transportationLand transportshippingTransportTransportSustainable water andwastewater managementWater saving andnon-conventional water resourcesWater infrastructureWastewaterWater supply, sewerage, wastemanagement and remediationClimate change adaptationn/aNot an activitybut one of theenvironmentalobjectives*n/aNot an activity but one of the EUenvironmental objectives*Circular economy adaptedproducts, productiontechnologies and processes and/or certified eco-efficient productsIntegrated utilisation of resourcesServices applicable to variouscategories: consultancy/operationmanagement service/audit, inspectionand evaluation of projects/monitoringand detection/promotion andcertification of technical productsIndustry andenergy intensivecommercialLow carbontechnologies, energyefficiency in industryManufacturingGreen buildingsSustainable buildingsBuildingsEnergy efficiency inbuildingsConstruction and real estate activities,professional services related to energyperformance of buildingsWastemanagementAgricultureforestryland conservationand restoration*Under both the CBI and the EU Taxonomy various projects and activities in a diverse set of sectors are mapped to the objective of climate change adaptation.

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Renewable energy Clean energy Energy generation, transmission and storage Renewable energy Energy Energy efficient transmission and distribution systems Various activities, including information and communication and professional, Energy efficiency Energy efficiency improvement scientific and technical activities Pollution prevention and control