Press release
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.
ENDS
NOTES TO EDITORS
For further information please contact
Charlotte Love
Director, Sustainability Communications
[1] Oxera, prepared for the International Chamber of Commerce, “The economic cost of extreme weather events,” 7 November 2024