DESIGNING A CLIMATE RESILIENCE CLASSIFICATION FRAMEWORK TO FACILITATE INVESTMENT IN CLIMATE RESILIENCE THROUGH CAPITAL MARKETS

The document proposes a systematic classification framework to identify and screen climate resilience investments, aiming to bridge the gap between high-level resilience goals and capital market flows. It defines eligibility based on 'Substantial Contribution' to resilience while avoiding maladaptation and significant harm, categorizing investments into a white list, standardized checks, and further assessment. The framework is organized around seven themes: Resilient Agrifood Systems, Resilient Industry & Commerce, Resilient Cities, Resilient Nature & Biodiversity, Resilient Health, Resilient Societies, and Resilient Infrastructure.

• There is a significant gap between the financing needs for climate resilience and current flows; developing countries alone require US$ 300 billion per year by 2030, yet reported global adaptation finance was only US$ 46 billion per year in 2021.
• Current sustainable bond markets have a low proportion of climate resilience-focused investments; of 33,849 GSS+ debt instruments recorded by the end of 2022, only 19 per cent had climate resilience-related use of proceeds.
• The proposed framework defines climate resilience as the capacity of economic, social, or ecological assets or systems to resist, absorb, accommodate, adapt to, transform, and recover from current and projected direct and indirect climate change impacts.
• Investment eligibility is based on two key principles: making a 'Substantial Contribution' to climate resilience and avoiding both maladaptation and significant harm to other sustainability objectives.
• The framework proposes three eligibility categories: a 'white list' for investments automatically eligible across broad contexts, 'standardized checks' for those requiring proportionate risk management, and 'further assessment' for investments requiring specific screening criteria.
• The framework is structured around seven core climate resilience themes: Resilient Agrifood Systems, Resilient Industry & Commerce, Resilient Cities, Resilient Nature & Biodiversity, Resilient Health, Resilient Societies, and Resilient Infrastructure.
• The framework distinguishes between 'adapted investments', which reduce physical climate risks to a specific asset or entity, and 'enabling investments', which support the resilience of other assets, activities, or entities.
• A literature review revealed a critical lack of specific performance thresholds for climate resilience investments in the market, indicating an urgent need for the framework to establish such thresholds.

APA

Climate Bonds Initiative (2023). DESIGNING A CLIMATE RESILIENCE CLASSIFICATION FRAMEWORK TO FACILITATE INVESTMENT IN CLIMATE RESILIENCE THROUGH CAPITAL MARKETS. https://www.climatebonds.net/files/documents/publications/Resilience-Taxonomy-White-Paper.pdf

Chicago

Climate Bonds Initiative. DESIGNING A CLIMATE RESILIENCE CLASSIFICATION FRAMEWORK TO FACILITATE INVESTMENT IN CLIMATE RESILIENCE THROUGH CAPITAL MARKETS. 2023. https://www.climatebonds.net/files/documents/publications/Resilience-Taxonomy-White-Paper.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=DESIGNING A CLIMATE RESILIENCE CLASSIFICATION FRAMEWORK TO FACILITATE INVESTMENT IN CLIMATE RESILIENCE THROUGH CAPITAL MARKETS |date=2023 |url=https://www.climatebonds.net/files/documents/publications/Resilience-Taxonomy-White-Paper.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2023designing, author = {{Climate Bonds Initiative}}, title = {{DESIGNING A CLIMATE RESILIENCE CLASSIFICATION FRAMEWORK TO FACILITATE INVESTMENT IN CLIMATE RESILIENCE THROUGH CAPITAL MARKETS}}, institution = {Climate Bonds Initiative}, year = {2023}, url = {https://www.climatebonds.net/files/documents/publications/Resilience-Taxonomy-White-Paper.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }