The Climate Bonds Initiative (CBI) has unveiled its revised Bioenergy Criteria, significantly expanding the scope of eligible activities to include electricity generation while introducing rigorous new safeguards for biodiversity and food security. The updated framework provides a science-based roadmap for investors to scale sustainable bioenergy as global investment in the sector is projected to reach $16 billion in 2025.
First established in 2018, the criteria have been modernised to reflect technological advances in biomass feedstock and methane abatement. A major shift in the framework sees the CBI move from a “feedstock-agnostic” stance to a more defined eligibility model, reinforcing environmental protections across the sourcing of organic materials.
The revised standards were developed under the Global Methane Hub (GMH) project, with a specific focus on embedding best practices to reduce methane leakage throughout the biogas and biomethane value chains.
“By expanding the scope of the Criteria, we are providing the sustainable finance market with wider, credible bioenergy investment opportunities,” said Paco Castro, Energy Analyst at Climate Bonds Initiative. “This update ensures that capital flowing into bioenergy delivers real climate benefits while supporting energy security and economic development.”
The updated Bioenergy Criteria introduce four critical changes to the Certification process:
- Refined feedstock scope: The framework now includes underutilised sources such as algae and woody biomass. However, strict safeguards apply; for instance, woody biomass is only eligible if it is classified as “waste” derived from forest management, excluding stemwood.
- Electricity generation: Recognising the sector’s evolving role in the power mix, electricity production from biomass is now eligible for mitigation requirements.
- Decarbonisation trajectories: Climate mitigation will now be assessed against an ambitious emissions intensity reduction path, aiming for near-zero emissions by 2050.
- Methane abatement: For the first time, the criteria embed mandatory best practices to prevent process-related methane leakage in biogas operations.
Science-based investor confidence
As countries seek scalable, low-carbon alternatives to fossil fuels, the IEA expects a 13% increase in global bioenergy investment this year. The CBI criteria are designed to ensure this capital is directed toward projects that maintain strong environmental integrity.
Dr Bernabé Alonso Fariñas, a professor at the University of Seville and member of the Bioenergy Technical Working Group, noted that the updated criteria set a “high bar” for the industry. “It gives investors confidence that Climate Bonds Certified bioenergy investments are aligned with long-term climate goals,” he stated.
The criteria are applicable across various financial instruments, including Use of Proceeds structures like Green Bonds, ensuring measurable climate impact as the bioenergy sector expands worldwide.
