Climate Bonds releases new Climate Resilience Principles
Framework for accelerating climate resilient investments in green bond market
LONDON, 17/09/2019: 12:00 BST: Today the Climate Bonds Initiative has released the Climate Resilience Principles (CRP) – a high-level guidance for governments, investors and banks to determine when projects and assets are compatible with a climate resilient economy.
Coordinated by a partnership between Climate Bonds Initiative, World Resources Institute (WRI) and Climate Resilience Consulting, development of the Climate Resilience Principles was undertaken by an Adaptation and Resilience Expert Group (AREG), comprised of more than 30 specialists from leading international authorities in the adaptation and resilience space, drawn from academia, not-for-profit, public and private sectors of climate science.
The CRP enhance standards across the global green finance market and provide a comprehensive, robust framework to evaluate the appropriateness and the effectiveness of climate resilience investments.
They include, but go beyond, a requirement for robust analysis of climate risks. They also require measures to be taken (in asset or project design, construction or adaptation) that ensure the asset or project is 'fit for purpose' in the face of a changing climate.
The CRP come at a time when adapting to climate risks opens new opportunities, in both developed and emerging economies, in areas including heat-resilient building materials, water-efficient technology, (embracing drip irrigation) and early warning systems for climate hazards, among many others.
The CRP are aimed at both new and existing investment in both built and natural environments.
- They recognise that infrastructure design and construction today must incorporate the climactic conditions of tomorrow, the expected volatility and extremes already ‘baked in’ to our global systems
- They require that measures are taken in asset or project design, in construction or retrofits, that ensure the asset or project is 'fit for climate purpose' over its operating life
- They recognise that the definition of 'fit for purpose' must now automatically include climate resilience and adaptation measures, or that the project itself must increase the climate resilience of broader systems and networks within the built environment or natural ecosystems
Acting as a best practice guide, the CRP will become part of Climate Bonds Standard V3.0 and the process for Climate Bonds Certification of green bonds and other debt products. They will progressively flow into individual Sector Criteria through the existing Technical Working Group (TWG) process, building on those Sectors where climate resilience features already exist.
The CRP can be applied to new and existing investment in both built or natural environments with respect to hard infrastructure and supporting services.
All the recommendations within the CRP are aligned with the proposals on adaptation in the EU Taxonomy of Sustainable Finance.
Joyce Coffee, Technical Lead, Adaptation and Resilience Expert Group
"These principles aim to increase funding and finance for climate resilience projects that ultimately make investments more effective, secure and durable. In the face of the climate shifts to come, strengthening of resilience factors across all facets of investment decision-making will help improve lives and livelihoods.”
Leonardo Martinez-Diaz, Global Director, Sustainable Finance Centre, World Resources Institute
“The Climate Resilience Principles will help capital markets support countries adapting to climate impacts. We hope this will unlock a major source of finance and bring us closer to meeting the Paris Agreement’s goal of aligning all finance flows with climate goals.”
Sean Kidney, CEO, Climate Bonds Initiative
“The climate conditions of tomorrow are already appearing. Investing in system resilience will increasingly take its place beside mitigation action as fundamental pillars in the financial response to the climate emergency.”
“Infrastructure, systems and network provision must be cognizant of the volatility and extremes to come, as does the investment decision making process. The CRP will provide an additional layer for analysis and assessment embedded within Climate Bonds Certification for green investment, enhancing its science-based best practice characteristics for determining climate-based investment.”
Head of Communications & Media
Climate Bonds Initiative
M: +44 (0) 7506 270 943
Notes for Journalists:
About the Climate Bonds Initiative: Climate Bonds Initiative is an international investor-focused not-for-profit organisation working to mobilise the USD100tn bond market for climate change solutions. The Climate Bonds Initiative carries out market analysis, policy research, market development; advises governments and regulators; and administers a global green bond Certification Scheme. For more information, please visit http://www.climatebonds.net.
About World Resources Institute: WRI’s mission is to move human society to live in ways that protect Earth’s environment and its capacity to provide for the needs and aspirations of current and future generations. WRI focusses on seven urgent global challenges global challenges that must be addressed to reduce poverty, grow economies and protect natural systems: Climate, Energy, Food, Forests, Water, Sustainable Cities and the Ocean. For more information please visit https://www.wri.org/
About Climate Resilience Consulting: CRC works with governments, cities, NGOs and the private sector to build adaptation tools and resilience to climate stresses and shocks. For more information please visit https://www.climateresilienceconsulting.com/
About the Adaptation and Resilience Expert Group: Climate Bonds Initiative convened an Adaptation and Resilience Expert Group (AREG) in November 2018 to determine overarching principles for defining climate resilient assets and bonds. The AREG comprises of over 30 specialists from leading international authorities in the adaptation and resilience space from academia, not-for-profit, public and private sectors of climate science and practice:
Joyce Coffee, AREG Technical Lead & CEO, Climate Resilience Consulting
Puja Sawhney, Coordinator, EU Switch: Asia SCP Facility
Neuni Farhad, Project Officer: Adaptation Research, C40 Cities Climate Leadership Group
Karoline Hallmeyer, Assistant Manager & ESG Advisor, KPMG
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 & 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, IFC
Jay Koh, Managing Director, Lightsmith Group
Aris Papadopoulos, Founder, Resilience 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
Niranjali Amerasinghe, Senior Associate of Sustainable Finance Centre, WRI
Karl Mallon, Director, XDI
Yoon Kim, Ph.D. Head of Global Client Services, Four Twenty Seven
Christine Lafon, BNP Paribas
Xianfu Lu, Senior Climate Change Specialist (Adaptation) Sustainable Development & Climate Change Dept., Asian Development Bank
John Thieroff, Vice President- Senior ESG Analyst, Moody’s Investor Service
John Firth, CEO & Co-founder Acclimatise
Brooks Preston, Managing Director, Macquarie Infrastructure & Real Assets Investments Ltd.