The second instalment in our briefing series that explores the synergies between climate change, green bonds and the UN Sustainable Development Goals (SDGs).
What’s it all about?
Climate change action will be critical to meet the full set of the UN Sustainable Development Goals (SDGs) in a long-lasting manner.
The first instalment in this briefing series, “Green bonds as a bridge to the SDGs”, set out the basic link between climate action, the SDGs and the green bond market, highlighting the alignment of investments in green bonds with SDGs 6,7,9,11,13 and 15.
This second briefing dives deeper into the linkages between climate adaptation and resilience and achieving the SDGs.
Key takeaways:
- Integrating climate adaptation and resilience across all infrastructure investment is necessary to meet the UN SDGs.
- Green bonds and other thematic bonds can connect assets to investors. Particularly for water (SDG6), energy (SDG7), transport and buildings (SDG9), sustainable cities (SDG11), climate action (SDG13) and life on land (SDG15).
- Clear definitions and disclosure on climate adaptation and resilience is required, across all sectors and all thematic bonds - green bonds, SDG-bonds, sustainability bonds, ESG-bonds and social bonds.
Check out the full briefing here.
The Last Word
Science-based definitions for both adaptation and resilience need to be integrated into existing mitigation definitions. Clear definitions for both adaptation and resilience will allow more granularity in disclosure, enabling investors to assess to what extent the financed assets can continue to operate over their whole lifespan as the climate changes.
Fostering an understanding amongst investors that climate adaptation and resilience are essential for green and social projects and assets is crucial to achieving the SDGs.
In future briefings we will further explore the environmental, social and economic components of climate adaptation and resilience and how they relate to the SDGs and the bond market. In the meantime, read more in our briefing paper.
‘Till next time
Climate Bonds
