Media Release
Resilience investing in the spotlight in Mainland China and Hong Kong as climate-related threats mount
‘Resilience’ investing set to expand sustainable debt market by $3 trillion by 2030, with major focus on Asia.
31/10/24 00:00 London/ Beijing 7:00: The CEO of international non-profit Climate Bonds Initiative (Climate Bonds), Sean Kidney, will address senior financial industry leaders in Hong Kong as it launches to the Asian market an expanded green bonds taxonomy to channel private finance towards climate resilience.
The expanded taxonomy, first made available in September during Climate Week in New York, enables the identification of a whole pipeline of new climate resilience investments, expanding the sustainable investing universe and channelling further capital to climate causes.
Dozens of senior finance leaders across Asia will gather at events across two days to hear Sean discuss Climate Bonds’ expanded taxonomy set to drive investments in transition, adaptation and resilience.
Asia is increasingly threatened by the intensifying impacts of climate change, including more frequent and severe typhoons, flooding, and rising sea levels, along with their social, economic and nature effects.
- Typhoons in Hong Kong are expected to double in strength by 2050.
- Sea levels are rising - Hong Kong, Shanghai, and Jakarta are particularly vulnerable due to their dense populations and infrastructures along coastlines.
- Increased flooding risks for low-lying areas and critical infrastructure, including transportation and utilities, housing, and essential services.
- Rising average temperatures affect public health, agriculture, and water resources, creating urban heat islands in cities.
- Economic implications include increased repair costs, disruptions to supply chains, and loss of productivity in affected sectors.
- Increased heat-related illnesses and vector-borne diseases, such as dengue fever, particularly impacting urban populations.
UNEP's latest Adaptation Gap Report highlights a global adaptation finance gap of US$194–366 billion annually, emphasizing the need for increased private sector investment and international cooperation alongside public finance. The sustainable debt market, with over USD 4 trillion already channelled to climate action through green, social, sustainable, and other labelled instruments (GSS+), offers a substantial opportunity to bridge the adaptation financing gap.
The updated Climate Bonds taxonomy provides a comprehensive classification system and eligibility criteria for climate adaptation and resilience investments. This will accelerate global capital flow into resilience investments by offering clear definitions, science-based criteria, and a common framework, facilitating the identification and development of impactful adaptation and resilience projects.
The updated taxonomy categorises investments into adapted and enabling investments, focusing on measures and activities that contribute to climate resilience. Investments are assessed against three key eligibility requirements: substantial contribution to resilience, management of maladaptation risks, and no significant harm to other sustainability objectives.
The new criteria will be utilised by government bodies, financial institutions, investors, real economy entities, market regulators, and international organizations. It is anticipated to support various applications, including debt issuance, guiding fiscal incentives, shaping financial services, and informing corporate strategic decision-making.
Defining climate resilience activities and sectors will also significantly expand the number of investable opportunities that can be labelled in Green, Social, Sustainability, Sustainability-Linked and Transition Labelled (collectively GSS+) bond markets. The market currently stands at over USD5trillion in global issuance, according to Climate Bonds’ Markets Intelligence.
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For more information, please contact:
Gabriel Carhart
Climate Bonds Communication Specialist
gabriel.carhart@climatebonds.net
Notes for journalists:
About Climate Bonds Initiative: Climate Bonds Initiative is an international not-for-profit working to mobilise global capital for climate action. Climate Bonds undertakes advocacy and outreach to inform and stimulate the market, provides policy models and government advice, market data and analysis, and administers an international Standard & Certification Scheme for best practice in green bonds issuance. For more information, please visit www.climatebonds.net.
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