Tokyo to issue world's first climate-resilience bond offering
The Japanese City of Tokyo plans to raise USD $330 million to fund projects that enhance the safety and security of its citizens from key disaster risks, disruptions to its power supply and communication services, and the spread of new infectious diseases.
Tokyo is not issuing just any climate bonds; Japan’s national government already issued the world’s first sovereign climate transition bonds in February 2024. Tokyo is issuing the first resilience and adaptation-focused climate bonds certified under the new Climate Bonds Initiative’s new Resilience Criteria and Taxonomy.
Climate bonds are a subset of green bonds. The first official green bonds were issued by the World Bank in 2008. The funds helped finance the Rampur Hydropower Project, which aimed to provide low-carbon hydroelectric power to northern India’s electricity grid. The project now produces 1,770.68 GW per year, preventing 1.4 million tons of carbon emissions.
The new Climate Bonds taxonomy represents a significant shift in how the Climate Bonds Standard—historically focused on emissions mitigation—can now accommodate adaptation and resilience projects with equivalent scientific rigour.
A climate bond will be certified if it fulfills three criteria: makes a substantial contribution to climate resilience, manages any associated maladaptation risks, and does no significant harm to climate mitigation objectives.
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