Public Consultation: New Climate Bonds Criteria for Deforestation and Conversion-Free Sourcing by Agri-Food Entities

Join us in Sowing the Seeds of a Climate-Secure and Biodiverse Future:
Financial Markets, Take Root, and Pay Heed!



The Climate Bonds Initiative announces the Public Consultation of the Criteria for

“Deforestation and Conversion-Free Sourcing by Agri-Food Entities"

This is a significant step aiming to align the agri-food sector with the urgent imperatives of
climate action and biodiversity conservation, particularly focusing on ensuring a global food
value chain free of the destruction of forests and other natural ecosystems.
The Public Consultation will run from December 22nd, 2023, until February 5th, 2024. We
invite experts and stakeholders to contribute views and insights to our accompanying survey.

The Pressing Context: Why This Matters

Deforestation and the conversion of natural ecosystems are significant drivers of
greenhouse gas emissions and global biodiversity loss.

A staggering 90% of deforestation is attributed to the agri-food supply chain, primarily in the
tropics. These ecosystems are increasingly threatened by the growing demand for
commodity crops such as beef, soy, palm oil, cocoa, and coffee.

Financial markets wield significant influence over these supply chains, the new criteria serve
as a beacon guiding sustainable investments and procurement.

Navigating Policy Flux: How Climate Bonds Criteria Bridge the EUDR Gap for the Agri-Food

Navigating the evolving landscape of global sustainability regulations, such as the European
Union's new Deforestation Regulation (EUDR), can be a complex task for corporates and
financial institutions. The EUDR, a game changing regulation, mandates that certain
commodities sold in the EU (such as soy, palm oil, beef, cocoa and coffee) must be
deforestation-free. This introduces substantial risk for companies and their investors who
have not aligned their processes by the 31st December 2024.

To help companies meet the requirements of the EUDR, Climate Bonds Initiative has
developed a Criteria specifically tailored for entities in the agri-food sector. These Criteria
not only mirror the EUDR requirements for agri-food commodities but also serve as the
market's inaugural guide for project developers in sustainable sourcing practices. In essence,

Climate Bonds Criteria offer a crucial bridge for Corporates, enabling continued access to
the EU market through verified sustainable practices.
In this context, the Climate Bonds Criteria act as a vital conduit, allowing companies to
maintain seamless access to the EU market while adhering to sustainable benchmarks.

Criteria Highlights: From Alignment to Action

1. Procurement Guidelines: The criteria offer precise procurement guidelines that align
agri-food commodity sourcing strategies with Deforestation and Conversion Free
(DCF) goals. These guidelines empower stakeholders—from food retailers to
traders—to issue credible deforestation and conversion free financing.
2. Time-bound Objectives: Clear cut-off dates have been set to phase out products
linked to deforestation and conversion of other natural ecosystems, facilitating a
more responsible global supply chain.
3. Traceability & Disclosure: The criteria include robust mechanisms for traceability
and disclosure, aligning with emerging policy requirements.
4. Policy Coherence: Meeting the requirements of the EUDR, the criteria act as a vital
tool for market players aiming to enter or maintain presence in the EU market.
5. Holistic View: Beyond environmental concerns, the criteria also incorporate social
elements, including human and indigenous peoples' rights.

Applicability: Broad and Inclusive

These criteria are not limited to any given step in the food value chain. They can be applied
by any entity operating with agri-food commodities beyond the farm gate, from retailers
and traders to processors and distributors.
The Last Word: A Pioneering Suite of Investment Criteria for the Future of Food
The introduction of these criteria for Deforestation and Conversion-Free Sourcing is merely
the tip of the iceberg. It forms part of an expansive suite of new criteria specifically tailored
for the agri-food industry, designed to accelerate this sector's decarbonisation and
transition to net-zero emissions.

This Public Consultation marks the last stages of the work in this new set of Criteria, we
extend our heartfelt gratitude to our dedicated Technical Working Group, whose expertise
has been invaluable in crafting these pioneering criteria for the agri-food sector.
These Criteria will be one of the first criteria under development, along with the updated
Agriculture Criteria (Crop and Livestock Production), all slated to be available for
Certification under the Climate Bonds Standard early in 2024. These proposed new criteria
will build upon the existing Agriculture Criteria, which are already available for use for

Join us in shaping a sustainable and resilient agri-food landscape. Reach out at to collaborate. For initiating the certification process
for your agriculture green bond, contact
This suite of criteria isn't just a set of guidelines; it's a roadmap to a greener, fairer, and
more resilient food system. In a time that calls for decisive and meaningful action, let's
leverage financial markets to meet the most pressing challenges of our era: climate change
and biodiversity loss. You can be part of this: please contribute your views to the brief
survey for Public Consultation. Thanks!

‘Till Next Time,
Climate Bonds.