International Public Consultation is now open for the Water Criteria Phase 2
Draft investor guidance for water bonds infrastructure under the Climate Bonds Standard
What’s it all about?
The Climate Bonds Initiative has released Water Criteria Phase 2 nature-based and hybrid water infrastructure for public consultation on behalf of the Water Consortium.
The Water Criteria lay out the requirements that water infrastructure assets and/or projects must meet to be eligible for inclusion as a Certified Climate Bond, and allow investors to more easily categorise and prioritise water infrastructure projects against climate impacts and climate resilience factors.
Two-phase development process
Phase 1 Criteria cover engineered water infrastructure and were released by the Water Consortium to the market in October 2016.
Phase 2 Criteria have a focus on nature-based and hybrid water infrastructure, such as wetlands and watersheds including for purposes as water collection, storage, treatment and distribution, flood protection and drought resilience. The Phase 2 Criteria aim to:
- Certify water infrastructure that are compatible with a 2°C trajectory
- Ensure these assets and the surrounding ecosystem are adaptive and resilient to a changing climate
The Water Consortium
Water Phase 2 Criteria have been developed throughout 2016 and 2017 by a Technical Working Group (TWG) and Industry Working Group (IWG), convened by the Climate Bonds Initiative. With Ceres, CDP, the World Resources Institute (WRI) & the Alliance for Global Water Adaptation (AGWA), the organisations act in collaboration as a Water Consortium. AGWA is supported by the Stockholm International Water Institute.
You can find more details and the Criteria documentation on our Water Page.
Want to learn more? Register for a Webinar
The Climate Bonds Initiative is running two one-hour webinars to introduce the Criteria and explain the development process on the 25th October and 20th November.
Webinar 1: Wed 25 Oct 15.00 - 16.00 BST (UK Time)
Webinar 2: Mon 20 Nov 16.00 - 17.00 GMT (UK Time)
Consortium Comments
John Matthews - Water TWG Lead Specialist, AGWA Representative
“From my perspective as the lead of a global network focused on implementing freshwater resilience, the launch of credible evidence-based criteria for the long-term investment in ecosystems and hybrid infrastructure marks an enormous advance for the water and finance communities.”
Karen Yacos - Director, Water infrastructure, Ceres Water Program
“Recent, monstrous hurricanes in the U.S. underscore the critical need for widespread application of nature-based solutions to ensure that future water infrastructure is resilient and able to withstand growing extremes in weather. These criteria will help drive investment into innovative solutions urgently needed by municipalities around the world.”
Cate Lamb - Head of CDP Water Program
“Nature-based solutions offer us a range of exciting ways to work with ecosystems in order to adapt to and mitigate climate change effects, while improving sustainable livelihoods and protecting natural ecosystems and biodiversity. The development of the Water Criteria associated with these interventions provides us with an opportunity to scale up their implementation and strengthen their impact in mitigating some of the world’s most pressing challenges.”
Todd Gartner - Senior Associate for the World Resources Institute’s Food, Forests & Water Program
“Phase 2 of the CBI Water Criteria Standard will help investors, bond issuers and water customers have confidence that water infrastructure projects consider the benefits of hybridized natural and built systems, enhance water security and ensure resilience in the face of climate change.”
Sean Kidney - CEO Climate Bonds Initiative
“Promoting investment in climate resilient water systems within the natural and built environment is a vital part of wider climate action. The expansion of our Water Criteria is a reflection of the significance of water across ecosystem sustainability and its position at the core of social and economic development.”
What’s the process from here?
The Water Phase 2 Criteria will now undergo a 60-day period of public consultation, investor and industry comment closing at 17:00 GMT on the 14th December 2017.
Once public consultation is complete, feedback will be considered before a final draft is submitted to the Climate Bonds Standard Board for final approval. After Board approval, bonds financing nature-based and hybrid water infrastructure will be able to use the Criteria to apply for Climate Bonds Certification.
The Consortium will then announce a release of the consolidated Water Criteria incorporating Phase 1 and Phase 2.
Want to Comment?
All the Phase 2 Criteria documentation are on our Water Page.
Please address your comments to:
Senior Research Analyst lily@climatebonds.net
The Last Word
Increased investment in climate resilient water systems in both the natural and built environment is integral to climate action and environmental sustainability.
A quick look at SDG Goal No 6 Clean Water & Sanitation gives a great snapshot of the current state and global importance of water issues.
There’s a long way to go yet on investment in water. Don’t forget, you can find out more at our October or November webinars.
And a very big thank you to our TWG and IWG members and to the other organisations in the Water Consortium for their efforts and support in the development process.
Till next time,
Climate Bonds
Disclaimer: The information contained in this communication does not constitute investment advice in any form and the Climate Bonds Initiative is not an investment adviser. Any reference to a financial organisation or debt instrument or investment product is for information purposes only. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on external websites.
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