Building resilience into climate finance

The world is already feeling the heat of climate change. Building climate resilience is no longer optional; it is essential. From rising sea levels to prolonged droughts, the impacts of a warming planet are already here. The latest update to the Climate Bonds Standard and Certification Scheme reflects this urgency. 

Version 4.3 of the Climate Bonds Standard introduces a significant enhancement: the new Criteria for Certification against the Climate Bonds Resilience Taxonomy (CBRT). The ‘Resilience Criteria’ expands the scope of what can be Certified and how.  

Resilience, now embedded in the Standard 

Until now, Certification under the Climate Bonds Standard has focused largely on climate mitigation, ensuring that debt instruments and assets align with science-based decarbonisation pathways. With the introduction of the Resilience Criteria, the Standard now incorporates a progressive methodology to assess whether projects, assets, or activities are also climate resilient. 

This means that Certified investments can now demonstrate alignment with Climate Bonds Criteria by substantially contributing either to mitigation and/or to adaptation and resilience objectives, offering investors a more comprehensive view of climate ambition. 

What are the Resilience Criteria? 

Developed in conjunction with the Climate Bonds Resilience Taxonomy and related Methodology, the Resilience Criteria provides a process-based approach to evaluating how well a project or asset is designed to withstand, adapt to, and thrive amid future climate impacts. 

These Criteria evaluate whether: 

• The issuer has undertaken a climate risk and vulnerability assessment.
• Material climate hazards and exposure have been identified.
• Adaptation measures are clearly embedded in the design and operations of the asset.
• There is a system for ongoing monitoring and adaptive management. 

What has changed in version 4.3? 

The main update in v4.3 is the range of eligibility criteria available which can be used for Climate Bonds Certification. The new clause 2.4 explicitly integrates the Resilience Criteria as an alternative route for Certification to existing Sector Criteria. 

This change means that eligible assets and activities can now be Certified if they meet the mitigation requirements through Sector Criteria or the Resilience Criteria. 

This expansion is particularly relevant for sectors such as infrastructure, water, agriculture, and the built environment, where climate resilience is as critical as emissions reductions. 
 

Why this matters? 

The inclusion of Resilience Criteria reflects the growing demand from investors and policymakers for investments which substantially contribute to increasing resilience against climate hazards. It strengthens the Climate Bonds Standard as a trusted framework for aligning finance with Paris Agreement goals, especially in regions most exposed to climate risks. 

By enabling Certification of projects that incorporate high-quality adaptation and resilience planning, we’re expanding the pipeline of investible climate solutions at a time when they’re needed most. 

With v4.3, the Climate Bonds Standard is ready to guide finance towards making the world more resilient to the increasingly severe climate change impacts. 

Want to learn more or Get Certified? 

Visit our Certification page for guidance, tools, and templates. The full Standard v4.3 is also available here. 

To speak with our team about Certifying a resilience-aligned project, reach out to certification@climatebonds.net 

For interview requests, please reach out to leticia.braga@climatebonds.net

Useful documents: 

• Climate Bonds Standard v4.3
• Criteria for Certification against the Climate Bonds Resilience Taxonomy
• Climate Bonds Resilience Taxonomy (CBRT) Methodology
• Climate Bonds Resilience Taxonomy v1 - Certification Version 

'Till next time, 

Climate Bonds