Addressing climate change is a multifaceted challenge. One key task is adaptation. Extreme weather conditions in many parts of the world this summer have demonstrated the seriousness of the situation.
Adaptation is complex and expensive. Raising awareness is imperative, but it is only the beginning. What is needed now is action. Trillions will be needed, and they cannot only come from public sources. Mobilising private sources of financing and using efficient market mechanisms will be key. The European Bank for Reconstruction and Development (EBRD) with its unique private sector mandate stands at the forefront of this effort in close cooperation with other multilateral partners.
Before we act, we need to know what we are doing. Together with the Global Center on Adaptation (GCA), the only international organization focused exclusively on adaptation, and the Climate Bonds Initiative (CBI), we are launching a guide for issuers of green bonds for climate resilience today. The CBI will share two reports resulting from this collaboration, one outlining the market potential for climate resilience bond issuances, and the other providing a guide for issuers, during the Climate Bonds Conference 2021, held on 6-10 September.
The EBRD issued its first climate resilience bond in 2019 and to date we have raised US$ 1.15 billion from capital markets against our portfolio of climate resilience investments.
The cooperation with the GCA, an international centre of excellence on the subject, and the CBI, an international, investor-focused not-for-profit organisation, has enabled us to pool our expertise in this important emerging area. This knowledge sharing and collaboration are crucial for helping others to realise the potential of climate resilience bonds and unlock larger flows of finance from the private sector.