The initiative aligns with Japan's broader climate adaptation strategy, emphasizing local risk reduction and disaster preparedness, and demonstrates Tokyo’s leadership in climate resilience and financial innovation.

Tokyo Metropolitan Government has issued the world's first climate resilience bond certified under the Climate Bonds Initiative's new Resilience Criteria and Taxonomy, marking a major milestone in sustainable finance.

The TOKYO Resilience Bond is designed to fund large-scale adaptation projects such as river upgrades, coastal defenses, storm barriers, and underground utility poles to safeguard Tokyo's infrastructure and its 14 million residents from climate risks like flooding, typhoons, and storm surges.

Yamashita Satoshi, Director General of Tokyo's Bureau of Finance, highlighted the urgency of addressing climate-induced severe weather and emphasized the innovative financing model introduced by these bonds.

This certification broadens the Climate Bonds Standard to include resilience and adaptation efforts, creating a new framework for resilience-focused sustainable finance.

Eligible projects include upgrading river and coastal infrastructure, reinforcing utilities and port facilities, and developing disaster prevention measures, especially for vulnerable areas like remote islands.

Sean Kidney of the Climate Bonds Initiative praised the bonds as a pioneering step that could set a precedent for other cities to direct capital toward resilience projects.

The bond proceeds will finance projects such as sediment disaster prevention, port renovations, and infrastructure improvements for remote island communities, focusing on both immediate safety and long-term resilience.

Market experts see this certification as a significant development that enhances credibility for resilience projects and could influence future green and blue bond issuance worldwide, particularly in climate-vulnerable regions.