Financing Sustainable Water Infrastructure
The Water Climate Bond Standard
Evidence and national surveys continue to prove that tremendous capital – nearly a $400 billion gap in the United States alone - is needed to support the next generation of resilient water infrastructure projects that support conservation, ensure safe delivery of supplies, encourage resource efficiency all while protecting our natural ecosystems. To accelerate this shift, Ceres is working with a range of partners to construct criteria for investment vehicles that will channel capital towards robust 21st century sustainable water systems.
As part of this effort, Ceres, in collaboration with the Climate Bonds Initiative, World Resources Institute, CDP and the Alliance for Global Water Adaptation are developing the world’s first standard for low carbon and climate resilient water bonds. The Water Climate Bond Standard has been developed through technical and industry working groups comprised of internationally recognized academics, investors, public utilities, water NGOs and international policy bodies.
The proposed Water Climate Bond Standard will bring a focus on vulnerability assessment and climate mitigation and adaptation planning to the fixed income space. It will allow investors to easily prioritize projects that are seriously considering their climate impacts and climate resilience.
Why a Water Standard?
Water-related projects are a growing subset of the green bonds market that encourages investments for a low carbon and climate resilient economy. Climate resilient investments in water are desperately needed if sustainable infrastructure is to be achieved. The Water Climate Bonds Standard is intended to provide investors with verifiable, science-based criteria for evaluating water-related bonds, and to assist issuers in the global corporate, municipal, sovereign and supra-sovereign markets in differentiating their green bond offerings. A Water Climate Bonds Standard should ensure that labeled green bonds for a wide variety of water-related projects and assets are held to common standards of robust, low-carbon and climate resilient water management. All water-related projects and assets that are certified under the Standard should continue to bring environmental and climate benefits over the operational lifetime of the project.
What are experts saying?
- Standard: Water Climate Bonds Standard: Defining Expectations for Water-Related Climate Bonds in a Dynamic Climate