Published: October 15, 2019
EBRD prints first ever climate resilience bond
The European Bank for Reconstruction and Development pushed the popular socially responsible investing movement in a new direction in September, with the supranational printing a climate resilience bond that focuses on accepting and adapting to climate change.
The climate resilience bond, the first-of-its-kind, will finance projects that are aimed at making businesses and communities more climate resilient, such as upgrading renewable energy plants so they can produce more energy using stronger and more efficient equipment to weather a sharply changing climate, rather than financing new low carbon projects like the more common green bond.
“The climate change challenge has two pillars,” Craig Davies, the EBRD’s head of climate resilience instruments, told EMEA Finance. “One is reducing greenhouse gas emissions, and the other is coping with the impact of a changing and more viable climate. As climate change has evolved, we are now seeing that there is a real need to focus on both sides of that challenge.”
He added: “It is wonderful green bonds are raising so much capital for low carbon transitions, but we also need to get financing mobilised for climate resilience as well.”