ICMA publishes new guidance for Climate Transition Bonds

On 6 November 2025, the International Capital Markets Association (ICMA) released new guidance for Climate Transition Bonds at the 11^th Annual Conference of the Principles held in Tokyo, Japan.

New materials and guidance published:

• Climate Transition Bond Guidelines: these Guidelines introduce the use of the Climate Transition Bond (CTB) as a standalone label for use-of-proceeds bonds that follow the core components and the key recommendations for heightened transparency for such bonds under the ICMA Principles, with necessary adaptations resulting from proceeds being used to finance credible climate transition projects (CT Projects). Guidance is also provided on financing CT Projects, with a definition and safeguards, as well as a preliminary and non-exhaustive list of CT Project categories set out in an Appendix to the Guidelines. The Guidelines also make recommendations for high-emission issuers of climate transition-themed Sustainability-Linked Bonds or SLBs.  
• A revised edition of the Climate Transition Finance Handbook (CTFH),  which includes a new annex on transition-plan frameworks as well as tools and methodologies to assess their credibility.