Climate Bonds Initiative releases new Climate Resilience Principles

The Climate Bonds Initiative has released the Climate Resilience Principles (CRP) — 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 Resource Consulting (CRC), development of the Climate Resilience Principles was undertaken by an Adaptation and Resilience Expert Group (AREG). This group is comprised of more than 30 specialists from international authorities in the adaptation and resilience space, drawn from academia, not-for-profit, public and private sectors of climate science.

Climate Bonds says 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 are aimed at both new and existing investment in both built and natural environments. According to a press release, they recognize 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. And they recognize that the definition of fit for purpose must 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.

“These principles aim to increase funding and finance for climate resilience projects that ultimately make investments more effective, secure and durable,” says Joyce Coffee, technical lead, AREG. “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.”

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 process, building on those sectors where climate resilience features already exist.

Climate Bonds says all the recommendations within the CRP are aligned with the proposals on adaptation in the EU Taxonomy of Sustainable Finance.

Climate Bonds Initiative is an international investor-focused not-for-profit organization working to mobilize the US$100 trillion bond market for climate change solutions.

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