External Review: New Climate Bonds Adaptation & Resilience Principles

Jay Owen Green Prosperity, Transforming Finance

External Review: New Climate Bonds Adaptation & Resilience Principles

Reviewers Sought

Climate Bonds Initiative launched its Adaptation and Resilience Expert Group (AREG) in November 2018 to develop the overarching principles that will provide a guiding framework for all Climate Adaptation & Resilience Criteria under the Climate Bonds Standard. The AREG are now completing their work and we are seeking External Reviewers to provide feedback on these Principles, which once incorporated into our Climate Bonds Standard and Certification Scheme, will improve best practice and enhance standards across the global green finance market which is growing ever so rapidly towar d its first trillion. 

If you would like to be part of this External Review, please click here to scroll below for details.

Investment in Adaptation & Resilience 

Climate risks and the need to build climate adaptation and resilience capacity present new opportunities, in both developed and developing countries. There is a need for A&R investment across a range of sectors. For example in water-efficient technology, drip irrigation, wind-, flood-, and heat-resilient building materials, new financial and insurance products, early warning systems, drought-resistant seeds, and new health products, among many others. There is also a pressing need to ensure all critical infrastructure and services are themselves resilience to unavoidable climate change. 

To date, green bonds have focused primarily on mitigation efforts with a lesser emphasis on adaptation and resilience. Robust criteria for mitigation for several sectors have already been developed under the Climate Bonds Standards, but strategic guidance is needed for introducing A&R criteria across all sectors in a consistent and systematic manner.

About the AREG

The AREG comprises 33 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 have agreed to participate in a joint project. 

It is now nearing completion of draft Climate Resilience Principles, which will provide high-level guidance for determining when projects and assets are compatible with a climate resilient economy, and therefore should be certified under the Climate Bonds Standard.

These principles will provide the framework under which sector-specific A&R Criteria will be subsequently developed by our sector based Technical Working Groups (TWGs). 

How to Participate?

This is an opportunity to provide the AREG with your feedback on the draft Climate Resilience Principles and shape how Adaptation & Resilience investments are assessed for certification under the Climate Bonds Standard. 

Therefore, if you have been involved in bringing A&R related green bonds (or other financial instruments) to market and you would like to become an External Reviewer, please send your CV and summary of your expertise in this area (no more than 400 words) to:

Anna Creed, Head of Standards at  [email protected] 

Deadline for applications is Wednesday 17th April.  

Applications will be responded to Tuesday 23 April.

The Last Word

The Climate Bonds Standard is an easy-to-use tool that allows investors and intermediaries to assess the environmental integrity of bonds. The Standard is backed by the Climate Bonds Standard Board of investor representatives, which collectively represent USD34tn of assets under management. 

To date, green bond issuance since 2007 has reached USD521bn, of which 11% has been Certified under the Climate Bonds Standard & Certification Scheme. 

We hope that you can be part of this endeavour and provide your valuable input in the ongoing development of Adaptation and Resilience Criteria for the Standard.