Part of: Financing Sustainable Urban Development: An Introduction

Investments for which climate bonds can be issued

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For climate bonds, investments must be compatible with the decarbonization trajectory of the Paris Agreement to hold global warming to 2°C. 

The infographic below and the source explain how projects are classified and certified as eligible for climate bonds (CBI 2018).

Climate Bonds Taxonomy

Source: Climate Bonds Initiative 2018

Nature-based, IT & communications, marine resources, and certain industrial investments are also considered green investments but are not typically provided by cities.