The Principles publish complementary guidance for Climate Transition Bonds, a comparison of their standards with the EuGB and a paper on structural demand for sustainable bonds
22 June 2026 On the occasion of its Annual General Meeting, the Executive Committee of the Green, Social, Sustainability, Sustainability-Linked Principles, and Climate Transition Bond Guidelines (collectively referred to as the “Principles”), supported by the International Capital Market Association (ICMA), announces complementary FAQ guidance for Climate Transition Bonds, a comparison of the Green Bond Principles and the EuGBS, and a publication on structural demand for sustainable bonds.
The Principles are the global standard for the $7 trillion sustainable bond market that represents the largest source of market finance dedicated to sustainability and climate transition, available internationally to corporates and financial institutions, supranationals, agencies and sovereigns.
Key guidance and publications released today are:
- Climate Transition Bond Guidelines - FAQ
This document aims to provide additional clarification around Climate Transition Bonds, including: how to differentiate transition and green projects, clarification on “best efforts” alignment, and application of the Guidelines by different issuer types, including in the hard-to-abate sectors, financial institutions, and sovereigns. - Phase 1: Comparison of the Green Bond Principles and the European Green Bond Standard
The Green Bond Principles and the European Green Bond Standard are complementary standards. This report, by the Taskforce on Official Standards and the Green Bond Principles, outlines the commonalities and differences between the two and encourages issuers to demonstrate alignment with both standards to ensure global investor recognition. - Exploring structural demand for sustainable bonds: perspectives from investor practice
By exploring the structural drivers underpinning demand for GSS+ bonds, this paper aims to provide issuers with a strategic understanding of why these instruments matter to investors and how they fit within investor priorities, allocation dynamics, and engagement practices.
Additional updated and supplementary technical guidance is also being released. This includes:
- Guidance Handbook (update includes additional Q&As on Climate Transition Bonds)
- Guidelines for External Reviews (update includes differentiation between pre-issuance, post-issuance, and entity level evaluation).
- Harmonised Framework for Impact Reporting for Green Bonds (update includes elevation of projects’ “Annual absolute gross GHG emissions” to a “Core Indicator” within the Energy Efficiency and Renewable Energy categories).
- Harmonised Framework for Impact Reporting for Social Bonds (supplemented with indicators for Affordable Basic Infrastructure projects).
See the Mapping of the Principles for a holistic overview.
The Principles also announced the renewal of half of the 24 members of its Executive Committee following an annual vote in line with its governance.
The standards and guidance from the Principles are developed with the input of over 340 market participants and stakeholders, as well as the participation of many other organisations through technical working groups. The Principles are the de facto global issuance standard referenced by over 96% of issuers in 2025.
The 2026 Annual Conference of the Principles is being held in Milan on Tuesday, 23 June. The full-day conference agenda combines keynote speeches and panel discussions with leading official sector and market representatives. It features key updates on the 2026 guidance from the Principles and explores critical topics in sustainable finance from a global perspective, including market experience with the new climate transition finance label, how official standards relate to ICMA guidance, and how the Principles support issuance, specifically in emerging markets.
