ADB Launches First Biodiversity Bond to Support Sustainability

News Desk 

Islamabad: The Asian Development Bank (ADB) has issued its inaugural biodiversity and nature-themed bond to finance various environmental projects across Asia and the Pacific.

This 10-year bond, valued at A$150 million (approximately US$100 million), was purchased by Japan’s Dai-ichi Life Insurance Company, Ltd. and arranged by Credit Agricole CIB, according to an ADB press release.

The bond, part of ADB’s Theme Bonds for Sustainable Development program, is coordinated with ADB’s Environment group. It aims to address critical challenges such as climate change, biodiversity loss, and pollution.

 “Investing in nature is emerging as one of the most impactful ways to combat climate change, biodiversity loss, and pollution. Through ADB’s first biodiversity and nature bond, we are pleased to mobilize additional private sector capital to protect, restore, and enhance sustainable management of biodiversity and nature mainstreaming,” stated ADB Treasurer Tobias Hoschka.

The theme bonds program serves as a vital tool to attract private capital toward the United Nations Sustainable Development Goals (SDGs) and the Kunming-Montreal Global Biodiversity Framework. Investors benefit from a secure investment backed by ADB’s AAA credit rating.

Dai-ichi Life’s Managing Executive Officer and Chief General Manager, Investment, Kazuyuki Shigemoto, expressed pride in supporting ADB’s efforts.

“We strongly support ADB’s Biodiversity and Nature Bond that will finance projects aimed at nature-based solutions, including biodiversity protection, nature mainstreaming, and supporting local communities’ livelihoods,” Shigemoto said.

ADB’s longstanding commitment to environmental conservation includes its founding partnership in the Coral Triangle Initiative (2009), which protects one of the world’s key marine ecosystems.

ADB also endorsed the Joint Statement on Nature, People, and Planet with nine other multilateral development banks at the 2021 Glasgow Climate Community of Practice.

This year, ADB introduced the Nature Solutions Finance Hub and the Natural Capital Fund with the Global Environment Facility, further expanding its environmental commitments.

The new Biodiversity and Nature Bond was announced at the 16th Conference of the Parties to the Convention on Biological Diversity in Cali, Colombia. ADB will soon launch its Environment Action Plan 2024–2030, aiming for a nature-positive approach across Asia and the Pacific.

Credit Agricole CIB, a partner in ADB’s sustainable finance initiatives, praised the bond’s launch as a significant step toward promoting financial solutions for environmental conservation.

“Launching the Biodiversity and Nature Bond is a great achievement to promote nature solution finance, encompassing goals related to fighting nature and biodiversity loss and promoting local economic growth and inclusion,” noted Credit Agricole CIB’s Global Head of Sustainability, Tanguy Claquin.