Climate Bonds joins SMBC and SMBC Nikko to expand adaptation and resilience finance in Japan

Key highlights

• Climate Bonds, SMBC and SMBC Nikko have signed a memorandum of understanding to support credible adaptation and resilience finance markets in Japan and internationally.
• Climate Bonds has issued an Alignment Opinion covering adaptation and resilience use-of-proceeds categories under the SMBC Sustainable Finance Framework.
• The cooperation will bring together climate standards expertise and financial market experience to strengthen understanding and expand financing opportunities in adaptation and resilience.

Tokyo, 25 September 2026: Climate Bonds Initiative is partnering with Sumitomo Mitsui Banking Corporation (SMBC) and SMBC Nikko Securities Inc. (SMBC Nikko) to support the growth of financing for climate adaptation and resilience. A new memorandum of understanding will support the development of credible, transparent markets that channel capital into activities helping communities, businesses, and economies withstand and manage growing climate risks.

Alongside the agreement, Climate Bonds has issued an Alignment Opinion confirming that certain eligible use-of-proceeds categories under the SMBC Sustainable Finance Framework align with the Climate Bonds Sector Criteria and Climate Bonds Resilience Taxonomy.

This is the first time in Japan that Climate Bonds has confirmed alignment with its resilience criteria within a sustainable finance framework developed by a financial institution. The opinion covers the adaptation and resilience categories assessed under the framework.

Building confidence in resilience finance

Floods, droughts, extreme heat and rising sea levels are increasing the need for investment that helps societies prepare for and withstand climate impacts. Financing adaptation and resilience must expand alongside investment in reducing greenhouse gas emissions.

These investments span multiple sectors, with different approaches to assessing their contribution to climate objectives. Clear eligibility criteria and credible approaches to impact measurement and reporting can help financial institutions and investors identify opportunities and understand what their capital will support.

Published in March 2026, the SMBC Sustainable Finance Framework supports access to sustainable finance for corporate customers in Japan, including through green loans and other financing instruments. The Alignment Opinion provides an external assessment of the climate change adaptation categories against Climate Bonds’ criteria, strengthening transparency around their climate credentials.

Masayuki Takanashi, Executive Officer, Group Chief Sustainability Officer (CSuO),Sumitomo Mitsui Financial Group, Inc.,said: 

“As the adverse impacts of climate change become increasingly evident, it is essential not only to reduce greenhouse gas (GHG) emissions but also to steadily advance climate change adaptation and enhance resilience in order to support the sustainable growth of our customers and society.

We are delighted that Sumitomo Mitsui Banking Corporation and SMBC Nikko Securities have signed a Memorandum of Understanding with the Climate Bonds Initiative, which has extensive international expertise in climate change adaptation and resilience. We also believe that obtaining an opinion on the alignment of certain use-of-proceeds related to adaptation and resilience under the SMBC Sustainable Finance Framework represents an important step toward enhancing the credibility and transparency of financing in this area.

Through this collaboration, SMBC Group will deepen its understanding of the challenges faced by its customers and local communities. By leveraging the Group’s broad range of financial capabilities, we will mobilize finance for initiatives that contribute to climate change adaptation and resilience and, together with our customers, contribute to realizing a climate-resilient and sustainable society. ”

Sean Kidney, Chief Executive Officer and Co-founder of Climate Bonds Initiative, said:

“Resilience has to become a much bigger part of the investment agenda. We need to protect the infrastructure, businesses, and communities our economies depend on, and we need to get capital moving before the next flood or heatwave hits.

“Working with SMBC and SMBC Nikko brings together the standards and financial expertise to help grow this market. Clear criteria give lenders and investors a stronger basis for financing resilience. This is an important step for Japan, and an opportunity to turn that confidence into more investment. We have to move quickly and at scale to build the resilient societies of the future.”

Yumiko Watanabe, Japan Program Lead of Climate Bonds Initiative, said:

“Japan has both an urgent need and a significant opportunity to scale investment in climate adaptation and resilience. Turning that need into investable opportunities requires greater clarity around what credible adaptation and resilience investment looks like, together with robust approaches to assessing impact.

By combining Climate Bonds’ expertise in standards and credible investment frameworks with SMBC and SMBC Nikko’s deep market knowledge and client relationships, we can help bridge the gap between resilience needs and capital. We look forward to working with market participants to build confidence, unlock investment, and accelerate the development of Japan’s adaptation and resilience finance market.”

Supporting market growth in Japan and internationally

Under the memorandum, the three organisations will exchange expertise and explore initiatives to advance adaptation and resilience finance in Japan and overseas. Cooperation will cover principles, standards, taxonomies, certification and assessment approaches, as well as impact measurement and reporting.

The partnership combines Climate Bonds’ expertise in climate standards and market development with SMBC’s financing capabilities and customer relationships, and SMBC Nikko’s capital markets experience and networks.

Through dialogue and communications with financial institutions, companies, investors and other market participants, the parties aim to strengthen understanding of adaptation and resilience finance and support a broader range of financing and investment opportunities.

ENDS

For interviews and more information, please contact: 

Xiaoyan Shen
Senior Communications and Marketing Specialist
Xiaoyan.shen@climatebonds.net

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Notes for Journalists

About Climate Bonds Initiative: Climate Bonds is the leading international non-governmental organisation mobilising global capital for climate action. We drive the growth of the green and sustainable debt market through science-aligned frameworks including our taxonomies and standards, our Certification, our data and insights, and our provision of expert policy and technical advice. More information on our website here.