The Tokyo Metropolitan Government (TMG) is preparing to issue the world’s first-ever certified climate-resilience bond, the TOKYO Resilience Bond, marking a significant milestone in sustainable finance. The bond has achieved certification under the newly launched Resilience Criteria and Taxonomy of the Climate Bonds Initiative (CBI), expanding the scope of climate-bond credentials beyond traditional mitigation toward adaptation and resilience.

With a target issuance of around JPY 50 billion (approx. USD 330 million), the proceeds will be dedicated exclusively to the TOKYO Resilience Project: a comprehensive program designed to strengthen Tokyo’s infrastructure and urban systems against climate-driven disasters like floods, storm surges, typhoons and seismic risk. The eligible projects include flood-control work on small and medium rivers, upgraded coastal-protection infrastructure around Tokyo Bay and remote islands, undergrounding utility poles to reduce disaster risk, and port facility renovations on vulnerable island communities.

According to TMG, the bond framework is designed to attract both domestic and international capital, leveraging the external certification and robust governance structure to give investors’ confidence in its climate-resilience credentials. The introduction of the CBI’s Resilience Taxonomy means that adaptation-oriented investments, once a niche, now have a globally recognized standard, potentially unlocking institutional capital for resilience infrastructure.

For investors and the broader market, Tokyo’s move signals a new chapter: issuing debt where the use of proceeds is tied not to emissions reduction, but to bolstering urban resilience and protecting people, infrastructure and ecosystems from climate risks. By becoming the first city to adopt this model, Tokyo is positioning itself as a leader in the emerging field of resilience finance and may serve as a template for cities worldwide.

In short, the TOKYO Resilience Bond represents more than just a new financial instrument: it marks the evolution of sustainable finance from mitigation to full-spectrum climate action. As climate-change impacts intensify globally, this issuance could catalyze a shift toward resilience-linked capital flows and a broader definition of what ‘green’ or ‘sustainable’ finance can entail.

Fuente:

https://esgnews.com/tokyo-to-issue-worlds-first-certified-climate-resilience-bond/