Growing viability of ‘adaptation finance’ as a new asset class

By Rob | June 30, 2025 |

By operationalizing the principles in its own “Guide for Adaptation and Resilience Finance,” Standard Chartered Bank is turning climate theory into impactful action.

Standard Chartered has taken a major step in addressing the economic fallout from extreme weather events by completing its first labelled adaptation finance deal for a corporate client. The milestone transaction, done in partnership with Jinko Solar Co., Ltd. (JinkoSolar), enables the delivery of advanced solar modules that are resilient to severe weather conditions such as tornadoes, storms, and sandstorms. These Tiger Neo N-type solar modules will be deployed in regions prone to climate extremes, including Florida, the UAE, and Saudi Arabia. This project supports clean energy access while bolstering infrastructure durability in some of the most vulnerable markets.

This deal follows the launch of the “Guide for Adaptation and Resilience Finance,” developed by Standard Chartered alongside global partners such as KPMG and the United Nations Office for Disaster Risk Reduction. The guide offers a clear framework for what constitutes investable adaptation activities, mapping out more than 100 opportunities. Standard Chartered’s successful implementation of this framework in a real-world transaction highlights the growing viability of adaptation finance as a new asset class. It also demonstrates the bank’s leadership in aligning financial innovation with the urgent need for climate resilience.

growing viability of adaptation finance as a new asset class

The economic urgency for such investment is clear. According to the International Chamber of Commerce, climate-related extreme weather has caused over \$2 trillion in global losses over the past decade. In just the last two years, the world faced \$451 billion in damages, a staggering 19% increase compared to the prior eight years. With hurricanes like Milton and Helene ravaging the U.S., and severe storms hitting the Gulf region, Standard Chartered’s support for resilient solar infrastructure is not only timely but critical in reducing future financial shocks.

Leaders from both organizations have emphasized the broader significance of this deal. Ben Hung, President of International at Standard Chartered, highlighted how the bank is leveraging its global network to build resilience into essential energy systems. Haiyun Cao, CFO of JinkoSolar, reaffirmed the company’s commitment to driving clean energy innovation that can withstand climate pressures. By turning its own adaptation finance guidance into action, Standard Chartered has positioned itself as a pioneer in sustainable finance, proving that building climate resilience is both an environmental necessity and a commercial opportunity

building climate resilience is both an environmental necessity and a commercial opportunity

From Standard Chartered Bank press release: Standard Chartered scales finance for resilient infrastructure as economic cost of extreme weather hits over $2 trillion

13 Mar 2025

Standard Chartered scales finance for resilient infrastructure as economic cost of extreme weather hits over $2 trillion

Standard Chartered announces completion of first adaptation finance deal for a corporate client following launch of the breakthrough Guide for Adaptation and Resilience Finance.
Deal facilitates the trade of solar modules resistant to tornadoes and tropical storms, extreme wind, storms and sandstorms.
In 2024, the International Chamber of Commerce (ICC) reported that over the last decade, climate-related extreme weather events resulted in cumulative losses to the global economy of around $2 trillion.[1]
Deal demonstrates potential of adaptation as an investable asset class in response to growing demand for resilient infrastructure to mitigate economic losses caused by extreme weather events, such as those caused by the Los Angeles wildfires earlier this year.

London – Standard Chartered today announces the successful completion of an adaptation transaction for Jinko Solar Co., Ltd. (JinkoSolar), facilitating the delivery of storm and extreme weather-resilient solar modules to solar photovoltaic (PV) farms located in the US (Florida), UAE and Saudi Arabia. Standard Chartered provided Bank Guarantees (BGs) to facilitate the trade of these solar modules, known as Tiger Neo N-type products.

The deal is Standard Chartered’s first labelled adaptation finance deal for a corporate client following the launch of the breakthrough Guide for Adaptation and Resilience Finance, which set out for the first-time, guidance on what constitutes adaptation and resilience investment, mapping over 100 investable activities in this field. This also represents the Bank’s first labelled adaptation finance transaction in China.

The deal demonstrates the potential of adaptation and resilience as an investable asset class in response to growing demand for resilient infrastructure, particularly in the US (Florida), UAE and Saudi Arabia, where extreme wind, storms and sandstorms degrade and disrupt solar technology, leading to economic losses on investments made. The project specification (see Appendix) protects against:

Tornadoes and tropical storms in the US (Florida), like the more than 46 tornadoes that occurred throughout Florida in 2024 as a result of Hurricane Milton. Across the US, hurricanes including Hurricane Milton and Hurricane Helene (North Carolina) caused over $500 billion in economic losses.
Extreme wind, storms and sandstorms in the UAE and Saudi Arabia, including the severe storm that swamped Dubai in 2024 leading to damages thought to be worth hundreds of millions of dollars to homes and businesses.

Ben Hung, President, International at Standard Chartered, said: “As a bank that sits at the centre of trade flows, and helps to facilitate them, we’re delighted to support JinkoSolar on this transaction. This deal demonstrates Standard Chartered’s ability to leverage the full breadth of our cross-border capabilities alongside our unique adaptation finance expertise, to connect demand for advanced solar technology with supply, building long-term resilience into critical energy infrastructure across our markets.”

Haiyun Cao, Chief Financial Officer at JinkoSolar, said: “Adaptation and resilience financing are crucial in the journey to address climate change and as a leading enterprise in the photovoltaic industry, JinkoSolar feels a great sense of responsibility to support this. We are committed to promoting the development of clean energy and improving the efficiency and adaptability of photovoltaic products through technological innovation. This not only contributes to our own sustainable development, but also provides stable clean energy supply for societies and enhances our ability to cope with climate challenges. JinkoSolar looks forward to strengthening our work with Standard Chartered to contribute to building a more resilient energy system together.”

Research from the International Chamber of Commerce (ICC) found that over the last decade, nearly 4,000 climate-related extreme weather events resulted in cumulative losses to the global economy of around $2 trillion, including the direct cost of physical asset destruction. In the last two full years alone, global economic damages reached $451 billion – representing a 19% increase compared to the previous eight years of the decade, underscoring the urgent need for resilient infrastructure.

Tracy Wong Harris, Head, Sustainable Finance GCNA at Standard Chartered said: “Standard Chartered offers practical solutions to mitigate the worst impacts of extreme weather, helping our clients build resilience against the major productivity losses being felt here and now in the real economy as a result of increasingly frequent weather-related events. We’re proud to support JinkoSolar on this transaction, empowering them in delivering clean energy security alongside long-term business growth.”

In 2024, Standard Chartered, KPMG and the United Nations Office for Disaster Risk Reduction launched the Guide for Adaptation and Resilience Finance, with support from more than twenty leading financial institutions and NGOs a guide for investment in adaptation and resilience. The guide set out a common reference for adaptation and resilience alongside a list of financeable adaptation and resilience themes and activities, forming a classification framework for the market.

Marisa Drew, Chief Sustainability Officer, Standard Chartered, said: “When we launched the Guide for Adaptation and Resilience Finance, we set out to provide the clarity needed across the market to accelerate investment into adaptation and resilience. Today, we’re putting the Guide into action ourselves through our first labelled deal with a corporate client, demonstrating the commercial opportunity alongside the economic benefits of financing resilient infrastructure in markets that are acutely vulnerable to the negative effects of extreme weather.”

This is Standard Chartered’s second labelled adaptation finance deal, having completed a deal with an insurance client in 2023, which provided financial protection against extreme weather such as changes in river levels and wind levels for businesses in the renewable energy sector.

For further information please contact

Charlotte Love

Director, Sustainability Communications

charlotte.love@sc.com

[1] Oxera, prepared for the International Chamber of Commerce, “The economic cost of extreme weather events,” 7 November 2024

Jinko’s Tiger Neo N-type solar modules

are designed with climate resilience in mind, featuring advanced technology for high efficiency and durability in various weather conditions. These modules utilize N-type cell technology, which offers several advantages, including higher efficiency, lower degradation, and better temperature performance compared to traditional P-type panels.

Key features contributing to climate resilience:

N-Type Technology:N-type cells have a longer carrier lifetime and higher efficiency, resulting in better performance and reduced degradation over time.
Hot 2.0 Technology:This technology enhances the reliability of the panels and minimizes light-induced degradation (LID) and LeTID (light and elevated temperature-induced degradation), which can affect panel performance over time.
High Wind and Snow Load Ratings:The Tiger Neo panels are certified to withstand high wind loads (2400 Pascal) and snow loads (5400 Pascal), making them suitable for harsh climates.
Salt Mist and Ammonia Resistance:The panels are designed to resist corrosion from salt mist and ammonia, common in coastal and agricultural areas.
Dual-Glass Design:Some Tiger Neo panels feature a dual-glass construction, which provides enhanced protection against moisture, extreme temperatures, mechanical stress, and potential induced degradation (PID).
Improved Shading Response:Half-cell design and better light trapping technology in the Tiger Neo modules help to improve performance even when partially shaded.
Low Degradation:The panels exhibit low annual degradation rates, with only 1% degradation in the first year and 0.4% annually thereafter, ensuring long-term energy output.
Long-Term Warranty:Jinko offers a 25-year product warranty and a 30-year performance warranty on the Tiger Neo series, demonstrating confidence in their durability and performance.

Resilient Solar Design Principles from Arka 360.com

The world’s energy landscape has changed as a result of the fast growth of solar energy as a clean and sustainable source of electricity. It is essential to guarantee solar systems’ long-term survival and performance under a variety of environmental circumstances as they grow increasingly widespread.

By integrating structural reinforcements and making use of cutting-edge materials, resilient solar design concepts seek to increase the toughness and lifetime of solar panels and mounting systems. This section examines these two crucial facets of solar resilience, emphasizing the role they play in advancing green energy methods.

Implementing Structural Reinforcements for Solar Panels and Mounting Systems

a. Considerations for wind and seismic load: Solar panels’ exposure to strong winds and seismic pressures is one of the biggest problems they confront. The total stability of the solar installation can be increased by adding structural reinforcements, such as extra bracing and anchoring systems, to reduce the danger of wind-induced damage. Engineers can create solar arrays that can endure adverse weather conditions and guarantee peak performance for years to come by taking into account the individual wind and seismic load characteristics at the installation location.

b. Robust framing and mounting systems: To increase the robustness of solar panels, it is crucial to use high-quality materials for the framing and mounting systems. A strong frame can offer superior support and stop early deterioration due to exposure to extreme external conditions if it is built of corrosion-resistant metals and resilient composites. Additionally, flexible and adaptable mounting methods can help solar panels be angled to gather the most energy possible throughout the day and year while minimizing sensitivity to outside factors.

c. Impact resistance: Solar panels can be protected from potential harm from debris or hailstorms by including impact-resistant elements. Even in areas where severe weather events are common, solar panels can preserve their structural integrity and efficiency by including protective layers or coatings.

Utilizing Advanced Materials to Enhance Durability and Longevity

a. Anti-Soiling Coatings: Over time, dust, grime, and other pollutants can build up on solar panels, decreasing their effectiveness. Anti-soiling coatings can be used to reduce the accumulation of pollutants, which enables solar panels to work at their best without needing to be cleaned often. Additionally enhancing the panels’ lifespan, these coatings shield them from potential abrasion.

b. UV and Weather Resistance: UV rays and shifting weather patterns are continually present on solar panels, which over time can destroy their components. Solar panels’ lifetime may be considerably increased by using UV-resistant materials and weatherproof encapsulants, which reduce the impacts of UV radiation, temperature changes, and moisture intrusion.

c. Enhanced cell technologies: Solar systems such as those that use double-glass modules or back-contact cells, can lower cell breakdown rates and increase the overall longevity of panels. These innovations provide superior defense against mechanical stress and the environment, improving long-term performance.

To maintain the sustainability and efficiency of solar power generation, it is crucial to incorporate resilient solar design concepts as the demand for renewable energy sources increases. Solar panels and mounting systems can endure a variety of environmental conditions, save maintenance costs, and increase their lifespan by concentrating on structural reinforcements and applying cutting-edge materials. A future with more dependable and sustainable electricity will result from including resilience in solar architecture.

Disaster Recovery Strategies for Solar Installations

Solar energy systems are essential for supplying the world’s expanding energy needs while lowering greenhouse gas emissions. Solar systems are also prone to natural disasters, harsh weather conditions, and unanticipated situations that might impair their regular operation, just like any other infrastructure. To ensure the quick recovery and restoration of solar systems following such disasters, it is essential to develop solid disaster recovery methods.

To reduce downtime and possible losses, these solutions call for thorough planning, collaboration with utilities and emergency response teams, and the deployment of cutting-edge technology.

Developing Plans for Rapid Recovery and System Restoration

Risk assessment: To identify possible risks that might harm solar systems, a thorough risk assessment is the first stage in disaster recovery planning. Natural calamities like hurricanes, floods, earthquakes, and wildfires as well as man-made catastrophes like cyberattacks or vandalism should all be included in this evaluation.
Business continuity plans: Owners and operators of solar installations should create business continuity plans that detail specific steps for quick recovery. These plans should include the steps to be followed right away following a disaster to guarantee the security of people and property, evaluate the damage, and start the restoration process.
Backup systems and redundancy: Including redundancy in solar projects reduces the effects of component damage or failure. By implementing backup systems, such as energy storage options, installations can continue producing power even when the grid is down and help to keep the system stable.
Training and drills: There is a need for training and certification for solar installers to make sure they are knowledgeable about the disaster recovery plan and are capable of quickly responding to situations. These exercises can replicate numerous scenarios to evaluate the team’s preparedness for various crisis circumstances.
Monitoring and remote control: Sophisticated monitoring systems that gather data in real-time make it possible to quickly identify abnormalities or interruptions in solar installations. Remote control capabilities enable quick steps to identify and reduce damage, improving recovery.

Coordinating with Emergency Response Teams and Utilities

Coordination between owners or operators of solar installations, emergency response teams, and utilities is crucial in the event of a catastrophe or emergency to guarantee worker safety, effective recovery, and prompt assistance. This coordination includes creating efficient channels for communication, creating emergency response plans, and cultivating cooperative relationships with pertinent players. To effectively coordinate with emergency response teams and utilities, keep in mind the following:

Communication channels:

The cornerstone of efficient coordination is the establishment of transparent and dependable communication channels. Owners of solar installations should establish direct channels of contact with neighborhood emergency response groups, including fire departments, police departments, and disaster management organizations. Additionally, keeping lines of communication open with utility providers guarantees prompt information on the grid’s condition and restoration activities.

Emergency response protocols:

To guarantee a coordinated and secure response during catastrophes, it is essential to develop and share emergency response procedures. These guidelines should specify what steps utility workers and others responsible for solar installation should follow in various emergencies. They should cover procedures for shutting down solar installations to prevent backfeeding into the grid during outages and for reintegration after the crisis is resolved.

Training and awareness:

Regular training and awareness programs for emergency response teams, utility people, and solar installation professionals increase readiness and boost the efficiency of coordination activities. All parties concerned can practice their roles and duties in emergencies by participating in mock catastrophe exercises that replicate various scenarios as part of training.

Information exchange:

Sharing essential details about the solar installation’s capacity, location, and any unique safety issues is necessary for coordination with emergency response teams and utilities. To facilitate their response efforts, emergency responders should have access to pertinent site blueprints, system diagrams, and vital contact information.

Grid integration and isolation:

Close collaboration with utilities is essential for grid-tied solar projects. Collaboration and open lines of communication make it possible to guarantee that the solar system is properly separated during crises, protecting utility personnel performing grid restoration from potential injury. Coordination is required to properly reintegrate the solar installation into the grid after a tragedy.

Establishing relationships:

It is advantageous to continuously forge and maintain connections with utility providers and emergency response teams. Regularly attending meetings, workshops, and community gatherings may enhance the entire framework for disaster response by fostering a spirit of cooperation and mutual support.

Compliance with regulations:

Coordinating with emergency response groups and utilities should also entail compliance with pertinent rules and professional standards. It’s crucial to follow safety procedures and policies to maintain effective teamwork.

A crucial part of solar installation disaster readiness is coordinating with emergency response teams and utilities. Successful coordination initiatives depend heavily on effective communication, clearly defined emergency response protocols, training, and teamwork.

Together, owners of solar installations, emergency personnel, and utility companies can improve the resilience and safety of solar infrastructure during catastrophes, reduce downtime, and give impacted populations prompt assistance.

Integrating Energy Storage for Resilience

Integration of energy storage systems has emerged as a critical option for boosting the resilience of solar power systems in the face of mounting climate change issues and the susceptibility of conventional energy networks to disturbances. Energy storage technologies are crucial in guaranteeing a consistent and stable energy supply because they give us a way to store excess energy produced under ideal conditions and use it in times of need.

This section examines the value of energy storage in enhancing the robustness of solar systems and how it may be used to provide batteries with backup power in emergency scenarios.

Enhancing Solar System Resilience through Energy Storage

The capacity of energy storage to store extra energy generated by solar systems during times of intense sunshine is one of its major benefits. This energy may be delivered when there is little sunshine or when it is cloudy by employing cutting-edge battery technology, which guarantees steady energy production and reduces the fluctuation of solar power generation.
Energy storage systems make it possible to manage energy effectively by capturing and storing energy when demand is low and releasing it when demand is at its highest. amid periods of heavy energy usage, this peak shaving technique lessens grid load and aids in maintaining system stability amid harsh weather conditions or natural disasters.
Energy storage can also help with islanding, or a solar system’s capacity to function independently from the primary power grid during grid failures. Critical facilities and towns can continue to supply power and run independently while remaining disconnected from the grid and depending on stored energy up until the main system is restored.

Utilizing Batteries for Backup Power during Grid Outages and Emergencies

Grid resilience and blackout prevention: Energy storage systems using batteries can serve as dependable backup power sources in regions with regular power outages or during natural catastrophes like hurricanes, floods, or wildfires. During grid outages, these batteries may automatically kick in, powering important infrastructure, hospitals, emergency response centers, and residential premises, ensuring that vital services and safety are not compromised.
Rapid response and load balancing: Batteries of the solar systems provide quick response capabilities, providing immediate power delivery during unexpected disturbances. They may also be utilized for load balancing, which contributes to grid stabilization by adjusting for variations in energy demand and supply.
Reducing fossil fuel dependence: The addition of energy storage devices lessens the need for backup generators that run on fossil fuels in times of emergency. As a result, it reduces pollutants and greenhouse gas emissions while fostering a more ecologically friendly and sustainable energy landscape.

Enhancing resilience and dependability in the face of more unpredictable weather patterns and possible grid failures requires integrating energy storage into solar power systems. We can pave the road for a more sustainable, secure, and resilient energy future by investigating the role of energy storage in enhancing solar system resilience and using batteries for emergency backup power.

To create an energy infrastructure that is resilient and adaptable enough to face the challenges of the twenty-first century, policymakers, energy providers, and communities must continue to invest in energy storage technology.

Conclusion

A sustainable and safe future requires the construction of solar systems that are robust enough to endure severe weather and enable effective catastrophe recovery. We can lessen the effects of climate-related difficulties and guarantee an uninterrupted energy supply even under the worst situations by integrating cutting-edge technology, sturdy infrastructure, and adaptable techniques.

By highlighting the significance of resilience in solar system design, we can maintain vital infrastructure while simultaneously fostering community resilience and environmental responsibility.

We can harness the power of the sun to build a more resilient and sustainable energy environment for future generations if we remain committed to innovation and readiness.

Who are Standard Chartered

“We are a leading international banking group, with a presence in 53 of the world’s most dynamic markets. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good.

Standard Chartered PLC is listed on the London and Hong Kong stock exchanges.”

Guide for Adaptation and Resilience Finance – Report April 2024

Executive summary

Responding to a global call to action
At COP28 in Dubai, the UAE Framework for Global Climate Resilience recognised that the current levels of finance for adaptation were insufficient and called for larger and more flexible financing from a diverse range of public, private, and philanthropic sources. A Call for Collaboration was issued by a broad stakeholder group, with the objective of accelerating the mobilisation of private finance for adaptation and resilience.
To support this aim, the Call asked for private finance and supporting partners to, “ideate, pilot and promote existing frameworks and taxonomies to encourage assessment of physical climate risks and resilience, protection from physical climate risks and investments into adaptation and resilience.”2
In response to this call, Standard Chartered, KPMG and the United Nations Office for Disaster Risk Reduction (UNDRR), with contributions from more than 20 additional organisations, (refer to “Contributors” section on Page 3) have collaborated to develop the Guide for Adaptation and Resilience Finance (“the Guide”).

Objective of the Guide for Adaptation and Resilience Finance
The Guide aims to unlock private sector capital flows into adaptation and resilience in emerging markets. It sets out, for the first time, an indicative list of adaptation and resilience
activities alongside guidance on the process for assessment of this. The Guide aims to accelerate the development and structuring of financial products focused on adaptation and
resilience, such as loans, bonds, private placements, structured notes, letters of credit, and deposits.

A practical guide for the market to mobilise finance
The Guide is a practical tool and sets out a blueprint for financial market participants that brings clarity to – and simplifies – the decision-making process when financing adaptation and resilience. It considers both climate-related (including meteorological and hydrological events) and non-climate-related natural hazards (such as geophysical events).

The Guide focuses on activities that can be financed through private lending and investment arrangements, and through public market capital raising. It includes assessment steps and
accompanying guidance covering consideration of substantial contribution to adaptation and resilience objectives, risk of potential for maladaptation, avoidance of significant harm to
other sustainability objectives, and consistency with national and local adaptation and resilience strategies.

The Guide provides a list of eligible financeable themes and activities, and identifies associated environmental and social co-benefits, with the ambition of standardising understanding of adaptation and resilience opportunities for financial institutions. The list is not exhaustive and focuses primarily on activities which address the needs of emerging markets
and developing economies and are financeable by the private sector.

Primarily, the Guide was designed for Financial Institutions (by this we mean commercial banks, development finance institutions, and investors). However, it has a broad applicability
for other financial institutions and investors engaging their clients in financing and investment opportunities related to natural hazard adaptation and resilience, including private lending and investment arrangements and public market capital raising.3

Similarly, although focused on the needs of emerging markets and developing economies due to the stark and increasing need for adaptation finance in these markets, the themes and activities included within have relevance for fast-growing and developed markets, with additional scrutiny around consideration of substantial contribution. This is a dynamic
tool for the market which will continue to evolve as financing adaptation and resilience grows and the market develops.

Climate change adaptation is recognised as an eligible project category by various voluntary process guidelines (e.g. Green Bond Principles and Green Loan Principles) and within national and regional taxonomies (e.g. EU Sustainable Finance Taxonomy; Singapore-Asia Taxonomy for Sustainable Finance, ASEAN Taxonomy for Sustainable Finance and the Common Framework of Sustainable Finance Taxonomies for Latin America and the Caribbean). However, these guidelines and standards address adaptation at a high-level, where there is a pressing need for more detailed guidance to specify eligible activities within these categories and to define potential co-benefits for people and the planet.

The Guide provides an indicative list of financeable adaptation and resilience themes and activities, forming a classification framework, and outlines a step-by-step process that provides accompanying guidance so financial institutions can:
•
Identify the eligible use of proceeds for financing and investment opportunities in adaptation and resilience in emerging markets and developing economies;4
•
Map the co-benefits of these investments beyond climate adaptation;
•
Screen investment opportunities for substantial contribution and risk of maladaptation as well as consider potential for significant harm to other sustainability objectives through reference to international standards on social and environmental safeguards;
•
Consider how the impact of these investments could be measured and reported on, including providing an indicative list of impact indicators.

2 Adrienne Arsht-Rockefeller Foundation Resilience Centre (2023), Call for Collaboration: Enhancing the enabling environment to accelerate the mobilisation of private finance for adaptation and resilience,
Call for Collaboration (onebillionresilient.org)
3 While the target audience of the Guide is commercial banks and broader financial institutions and actors, the role of government, central banks, and the capacity of local actors is critical to enable accelerate
adaptation financing
4 While the focus of the Guide is on accelerating flows of adaptation finance to emerging markets and developing economies, it also has broader applicability to a developed country context

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