Global action on climate adaptation

This article originally appeared on the CharteredBanker.com blog at https://www.charteredbanker.com/resource_listing/cpd-resources/global-action-on-climate-adaptation.html

Road surfaces that don’t melt during hot summers and drought-resistant seeds are the kind of solutions needed as the world adapts to climate change, according to the Global Commission on Adaptation.

The Commission, which is backed by more than 20 countries, including the UK, Germany and China, is running a Year of Action ahead of its Climate Adaption Summit in the Netherlands in October 2020.

Patrick Verkooijen, CEO, the Global Center on Adaptation, and Co-managing Partner of the Global Commission on Adaptation, said the initiative was about “implementing real solutions around the world which show that adaptation is not just the right thing to do but the smart thing to do.”

“Adaptation not only has economic benefits, but it is also essential if we are to avoid climate apartheid — a world in which the wealthy pay to escape from the worst impacts of climate change, while the poor are left to suffer,” Verkooijen added

International support

More than 75 governments, institutions, civil society organisations, and private sector players are helping to advance eight ‘Action Tracks’. These are focused on: finance and investment, food security and agriculture, nature-based solutions, water, cities, locally-led action, infrastructure, and preventing disasters.

As part of the finance and investment stream, the private-sector led Coalition for Climate Resilient Investment has been launched by London-based insurance broker and advisory business Willis Towers Watson in partnership with the governments of the UK and Jamaica, the Global Commission on Adaptation and the World Economic Forum.

It will focus on developing data and analytical tools to better understand the risks posed by climate change and to align investment flows towards infrastructure capable of withstanding a changing climate.

Resilient infrastructure

John Haley, CEO of Willis Towers Watson, said: “Pricing the risks posed by climate change will create opportunities to build a network of resilient infrastructure in high, medium and low-income countries, enabling us to better prevent future human and financial disasters.”

A report on climate resilient infrastructure from the OECD lists a range of impacts to infrastructure from temperature changes, rising sea levels, changing rainfall patterns and storms. These include melting road surfaces and buckling railway lines; damage to bridges; port and airport disruption and disruption of energy supply due to flooding.

The Global Commission on Adaptation is based in the Netherlands and led by Ban Ki-moon, 8th Secretary-General of the United Nations, Bill Gates, co-chair of the Bill & Melinda Gates Foundation, and Kristalina Georgieva, CEO of the World Bank. It is guided by 33 commissioners and 19 convening countries, representing all regions of the globe, and co-managed by the Global Center on Adaptation and World Resources Institute.

The Chartered Banker Institute’s Green Finance Certificate™ is the first global, benchmark qualification for the growing Green Finance sector.


A new dawn for green bonds

This article originally appeared on the CharteredBanker.com blog at https://www.charteredbanker.com/resource_listing/cpd-resources/a-new-dawn-for-green-bonds.html

The green bonds market is expected to reach new highs this year after more than $200bn in green bonds and loans were issued in 2019 – a new global record.

Green bonds – also known as climate bonds – are fixed-income investments issued by governments and corporations as debt capital to fund climate and environmental projects.

“Green bonds are those where the proceeds raised are allocated to environmental projects or uses,” explained Simon Thompson, Chief Executive, Chartered Banker Institute. “They might be used to raise capital for a wide variety of purposes, including renewable energy projects, clean transport infrastructure, sustainable buildings, flood defences, or sustainable forestry and agriculture.”

The Climate Bonds Initiative – which promotes and tracks the green bond market internationally – reported in October that $202.2bn in green bonds and loans had been issued in 2019 – an all-time high for the green market.

The US issued the most bonds, followed by France, China, Germany, Netherlands and Sweden. Energy dominates overall use of proceeds at 33%, followed by low carbon buildings on 29%, low carbon transport 20%, water 9%, with waste and land use each at 3%.

Green trillions

In 2020, the initiative forecasts global annual green bond issuances to hit between $350-400bn. But to make a real impact, ‘green trillions’ is the goal.

“New sovereigns are entering the market and pioneers like France, Poland and Nigeria are now repeat green issuers,” said Sean Kidney, CEO and co-founder of the Climate Bonds Initiative.

“Bond size and diversity of issuers is increasing, and noteworthy is the presence of leading European and Chinese banks amongst the largest issuers.

“But $200bn or $400bn a year is not enough to address the climate emergency and provide the capital at the scale urgently required for large scale transition, adaptation and resilience.

“Generating that first $1tn in annual green investment by 2021/22 is now critical. It’s the benchmark from which to measure year on year growth in climate-based investment towards 2030.”

Critical role

In the UK, there are more than 100 green bonds from 16 countries listed on the London Stock Exchange, with the amount raised more than doubling since 2017 from $10.5bn to $26bn.

Globally, green bond issuance has climbed from $45bn in 2015 and $168bn in 2018.

The Institute’s Simon Thompson predicts that debt capital through green bonds will play an increasingly important role in financing the world’s shift to a low carbon economy.

“The scale of investment needed to finance the transition to a sustainable, low-carbon world – $6tn per year – will exceed both the capabilities of the post- financial crisis banking sector and the constrained balance sheets of utility companies,” Thompson said. “This is why the debt capital markets will be significant in facilitating the continued operation of existing projects via refinancing, and the development and construction of a wide range of new projects supporting climate change mitigation and adaptation.”