StanChart and Co's Plan to Mainstream Adaptation Financing

The year’s barely 100 days old, and Climate Proof has already reported on a wide range of adaptation and resilience (A&R) financing and investment frameworks, taxonomies, and principles. 

It turns out there’s room for at least one more.

The Guide for Adaptation and Resilience Finance, released today by UK bank Standard Chartered, KPMG, and the United Nations Office for Disaster Risk Reduction (UNDRR), is intended to “unlock private sector capital flows into adaptation and resilience in emerging markets.”

This is in keeping (at least somewhat) with the objectives of the Principles for Responsible Banking’s climate adaptation target setting guide, the Climate Bonds Initiative’s Resilience Taxonomy, and the Climate Resilience Investments in Solutions Principles (CRISP) framework, among others. 

So what makes this Guide special?

There are a couple of reasons. For one, it speaks directly to commercial banks, development finance institutions, and investors looking to harden their portfolios against climate shocks, and lays out an approach that aligns with their habits and practices.

For another, it sets out a list of over 100 investable A&R themes and activities, along with steps for assessing whether or not investments effectively support A&R goals. In doing so, the Guide’s authors hope to unleash a wave of adaptation-related financial innovation that results in more bonds, loans, and other products being used to climate-proof some of the world’s most vulnerable economies.

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