International experts convened to develop high-level guiding principles to apply across all Sector Criteria investments
New High-Level Group
In a major expansion of Climate Bonds Standard’s development program, a high-level Adaptation and Resilience Expert Group (AREG) has been convened to determine overarching principles for defining climate resilient assets and bonds.
Thirty-three leading international authorities in the adaptation and resilience space from academia, not-for-profit, public and private sectors of climate science and practice have agreed to participate in a joint project. The objective is to strengthen consideration of science-based resilience and adaption factors for green bond and debt-based investments where issuers are seeking Climate Bonds Certification.
At present such factors are incorporated within individual sector-based Criteria however, it’s clear that additional enhanced guidance for issuers, investors and verifiers is needed, in part to match the growing recognition that many climate impacts are now locked-in. Hence resilience and adaptation must be addressed in planning, infrastructure and community programs and accompanying climate investment.
The new principles, once part of our Certification Scheme, will act as a signal towards best practice and improved standards in an international green finance market that is expanding towards its first trillion.
A&R Principles to apply across all Criteria
The AREG’s mandate is distinct from previous Technical Working Groups (TWGs) convened by Climate Bonds. The AREG is tasked with the development of Adaptation and Resilience Principles (A&R Principles) which will be applied across all current and future Climate Bonds Criteria under the Climate Bonds Standard that form the basis of our international Certification scheme.
In addition to defining climate resilient investments at the asset-level, the A&R Principles will be used to identify investments that seek to enhance the resilience of broader systems and communities.
Sectors available for Certification
At present, Climate Bonds Certification extends to bonds issued from the following sector Criteria:
- Forestry
- Geothermal Energy
- Low Carbon Transport
- Low Carbon Buildings
- Marine Renewable Energy
- Solar Energy
- Wind Energy
- Water and Wastewater Infrastructure
Sectors currently under development
- Bioenergy
- Hydropower
- Land Conservation & Restoration
- Land Use
- Protected Agriculture
- Waste Management
Who’s saying what?
Joyce Coffee, Climate Resilience Consulting:
"When Climate Bonds Initiative releases the Adaptation and Resilience Principles, they will be answering questions investors in all markets are increasingly asking."
"The A&R principles will benefit the number and amount of climate bonds, financing projects that save lives and improve livelihoods around the world."
Sean Kidney, CEO, Climate Bonds Initiative:
"The formation of this Expert Group comes at a critical time when issuers and investors are looking for guidance on more clearly defining the adaptation and resilience aspects of investments and how to define a closer alignment to a climate resilient economy."
"AREG will look to lay out the overarching principles to apply in Climate Bonds Certification, another step towards building science-based, best practice frameworks to apply across investment markets and support increased capital flows into climate finance."
Standards gathering momentum
2018 has seen more discussion and debate around green standards, definitions and harmonisation of a market that has rapidly grown to hundreds of billions and has aspirations into the trillions.
Part of Climate Bonds response has been to accelerate the development of new Criteria through 2018, release our updated Climate Bonds Taxonomy and in addition to that, the long-awaited umbrella Standard V3.0 is now verging on launch.
AREG is another comprehensive step. On release, the A&R Principles will be used to align Climate Bonds’ existing resilience criteria as well as guide the development of future resilience criteria.
The program will commence November 2018 and conclude by June 2019. After development, public consultation and review, the finalised A&R Principles will go before the independent Climate Bonds Standard Board* for approval.
The Last Word
Green bonds, green loans and climate finance hold tremendous potential to channel capital towards enhancing the resilience of assets, infrastructure, systems and communities.
AREG comprises of a group of highly capable experts; you can find the full list below and on the AREG webpage. It promises all kinds of fascinating outcomes once the process gathers space.
As with all our activities, you can keep track of progress via the Blog or our social media channels and in our January newsletter. This is definitely one to watch.
‘Till next time
Climate Bonds
Composition of the Adaptation and Resilience Expert Group (AREG):
|
Representative |
Title |
Organisaton |
|
Joyce Coffee |
CEO and AREG Lead |
Climate Resilience Consulting |
|
Puja Sawhney |
Coordinator |
EU Switch: Asia SCP Facility |
|
Alfredo Redondo |
Senior Manager of Adaptation Diplomacy |
C40 Cities Climate Leadership Group |
|
Neuni Farhad |
Project Officer: Adaptation Research |
C40 Cities Climate Leadership Group |
|
Karoline Hallmeyer |
Analyst |
Climate Policy Initiative |
|
Federico Mazza |
Adaptation Lead |
Climate Policy Initiative |
|
Craig Davies |
Head of Climate Resilient Investments |
EBRD |
|
Carel Cronenberg |
Head of Climate Resilient Investments (ASSOCIATE DIRECTOR – MRV Manager) |
EBRD |
|
Cinzia Losenno |
Senior Climate Change Specialist |
EIB |
|
Emilie Mazzacurati |
Founder and CEO |
Four Twenty Seven |
|
Josh Sawislak |
Strategic Advisor |
Four Twenty Seven |
|
Carmen L. Lacambra |
Head of Research and Environmental Services |
Grupo Laera |
|
Nathanial Matthews |
Program Director |
Global Resilience Partnership |
|
Swenja Surminski |
Senior Research Fellow |
Grantham Research Institute |
|
Celeste Connors |
Executive Director |
Hawaii Green Growth |
|
Vladimir Stenek |
Senior Climate Change Specialist |
International Finance Corporation |
|
Jane McDonald |
Managing Director |
International Institute for Sustainable Development |
|
Jo-Ellen Perry |
Adaptation Lead for Resilience |
International Institute for Sustainable Development |
|
Reinhard Mechler |
Deputy Program Director |
International Institute for Applied Systems Analysis (IIASA) |
|
Jay Koh |
Managing Director |
Lightsmith Group |
|
Patrick Regan |
Associate Director for ND-GAIN |
Notre Dame Global Adaptation Initiative (ND-GAIN) |
|
Aris Papadopoulos |
Founder of Resilient Action Fund |
Resilence Action Fund, UNISDR-ARISE |
|
Kevin Bush |
Chief Resilience Officer |
Washington D.C. Government |
|
Miroslav Petkov (AREG Observer) |
Director |
S&P Global |
|
Richard J.T. Klein |
Senior Research Fellow |
Stockholm Environment Institute |
|
Peter Wheeler |
Executive Vice President |
The Nature Conservancy |
|
Jenty Kirsch-Wood |
Senior Technical Specialist |
UNDP |
|
Michael Cote |
Project Director Private Investment for Enhanced Resilience |
Winrock International |
|
Carlos Sanchez |
Director, Climate Resilience Finance |
Willis Towers Watson |
|
Stephane Hallegatte |
Lead Economist, GFDRR |
World Bank |
|
Moushumi Chaudhury
|
Associate of Climate Resilience Practice |
World Resources Institute |
|
Niranjali Amerasinghe |
Senior Associate of Sustainable Finance Center |
World Resources Institute |
|
Karl Mellon |
Director |
XDI |
*Disclosure: The CBSB is an Advisory Committee to the Climate Bonds Board.
