Tokyo Metropolitan Government Issues World's First Certified Climate Resilience Bond Valued at €300 Million

Tokyo Secures €300 Million for Climate Adaptation

The Tokyo Metropolitan Government (TMG) announced on Tuesday, October 28, 2025, the issuance of a €300 million (approximately ¥53 billion or US$350 million) climate resilience bond. This significant financial instrument is earmarked to bolster the city's defenses against the impacts of climate change, specifically funding upgrades for coastal protection and enhancing river flood resilience facilities. The bond represents a pivotal step in Tokyo's long-term strategy to secure its infrastructure and protect its 14 million residents from natural disasters.

Funding Critical Resilience Projects

The proceeds from this bond will be channeled into various initiatives under the comprehensive TOKYO Resilience Project, a strategic plan launched in 2022 designed to fortify the city against floods, storms, earthquakes, and other potential disasters for the next century. Key investments include:

• Upgrading coastal protection facilities for the Port of Tokyo and around Tokyo Bay and nearby islands.
• Developing sediment prevention systems.
• Enhancing river flood resilience measures, including upgrading river systems and reinforcing river infrastructure.
• Reinforcing storm barriers.
• Undergrounding utility poles to prevent collapse during extreme weather events.
• Renovating port facilities to protect remote island communities particularly vulnerable to typhoons and coastal hazards.

These projects are crucial for safeguarding critical infrastructure and communities in a region exposed to severe flooding, storm surges, and typhoons.

A Global Benchmark in Sustainable Finance

This bond is notable for being the world's first certified resilience bond, validated by the Climate Bonds Initiative (CBI) under its new Resilience Criteria and Taxonomy. This certification marks a significant evolution in sustainable finance, expanding the Climate Bonds Standard beyond mitigation to include adaptation and resilience finance.

Melissa Cheok, an associate director at Sustainable Fitch, commented that this 'new bond label is a notable development for the market,' adding that the bond's oversubscription 'signals that the market is ready to allocate capital to these types of investments.' Sean Kidney, CEO of the Climate Bonds Initiative, highlighted the bond's importance, stating that it 'creates a new generation of resilience and adaptation-focused finance, a landmark moment for the sustainable finance market.' The issuance sets a global benchmark for how cities can finance large-scale climate adaptation efforts.