The Tokyo Metropolitan Government (TMG) has unveiled plans to issue TOKYO Resilience Bonds, marking the first issuance of certified climate resilience bonds. These bonds aim to fund projects designed to protect the city from natural disasters and the effects of climate change. The TMG anticipates raising approximately JPY 50 billion (USD 330 million) through this bond offering.
According to the TMG, the proceeds will be dedicated exclusively to initiatives under the TOKYO Resilience Project, which focuses on climate change adaptation and resilience. Launched in 2022, this project aims to enhance the city’s safety and security against key disaster risks, including storms, floods, major earthquakes, volcanic ash, power supply disruptions, communication service interruptions, and the spread of new infectious diseases.
The bond issuance follows the release of the TOKYO Resilience Bonds Framework, which details the eligible use and management of proceeds. Projects funded through these proceeds will target severe storms and floods exacerbated by climate change. Eligible projects include upgrading small and medium-sized rivers to improve flood resilience, developing coastal protection facilities, reinforcing river infrastructure, undergrounding utility poles to prevent collapse during disasters, and renovating port facilities to protect remote islands from typhoons and coastal hazards.
Yamashita Satoshi, Director General of the Bureau of Finance, Tokyo Metropolitan Government, stated the urgency of addressing severe storms and floods caused by global warming. He emphasised that the TOKYO Resilience Bond represents a new financing model to support climate change adaptation investments.
The bond is the first to be certified under the Climate Bonds Resilience Criteria and Taxonomy, recently introduced by the Climate Bonds Initiative, a climate finance group. This certification aims to expand climate bonds’ focus from mitigation and transition to include adaptation and resilience finance.
Sean Kidney, CEO of the Climate Bonds Initiative, remarked that by investing in projects that protect citizens from floods, storm surges, and typhoons, the Tokyo Metropolitan Government is setting a global precedent for urban resilience investment. This certification marks a significant moment for the sustainable finance market, promoting a new generation of resilience and adaptation-focused finance.
