The Climate Bonds Initiative handles bonds that do not meet its criteria by implementing a rigorous certification process that ensures compliance with its standards. Here’s how it manages non-compliant bonds:
- Verification and Certification Process: The Climate Bonds Initiative requires that bond issuers engage with approved third-party verifiers to assess whether their bonds meet the criteria set by the Climate Bonds Standard. If a bond does not meet these criteria, it will not receive certification.
- Non-Conformance Handling: If a bond is found not to comply with the Climate Bonds Standard after certification, the Climate Bonds Standard Board may request a new verification report from a different verifier. If non-conformance continues, the Board can revoke certification.
- Revocation and Notification: Upon revocation of certification, the issuer must stop using the Climate Bond Certification Mark, remove the bond from Climate Bonds listings, and notify bondholders and market participants about the change in certification status.
- Re-Certification: For a bond to be re-certified, the issuer must engage a verifier to assess compliance and provide a report to the Climate Bonds Standard Board, which will review and decide if certification can be reinstated.
In summary, the Climate Bonds Initiative fosters transparency and environmental integrity by ensuring that only compliant bonds are certified, while those that fail to meet the standards are either not certified or face revocation and potential re-certification if they later comply.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-climate-bonds-initiative-handle-bonds-that-do-not-meet-its-criteria/
