Standard Chartered launches climate adaptation finance

Standard Chartered, which operates in consumer, corporate, and institutional banking, has partnered with JinkoSolar to facilitate the trade of advanced solar modules across the US, the United Arab Emirates, and Saudi Arabia. The modules are engineered to ensure constant energy production under extreme weather conditions.

The importance of adaptation and resilience finance in emerging economies

As climate and weather-related disasters increase in frequency and severity, the need for adaptation finance is becoming significant within the banking sector. This type of finance provides essential tools for mitigating economic losses caused by unpredictable weather, a growing concern in the changing climate. Moreover, according to the International Chamber of Commerce (ICC), over the past decade, climate-related extreme weather events have resulted in cumulative losses of approximately USD 2 trillion. In 2024, the economic damages reached USD 451 billion alone. 

In partnership with JinkoSolar, Standard Chartered provided Bank Guarantees to facilitate the delivery of Tiger Neo N-type solar modules. These modules are designed to withstand severe environmental conditions and will be distributed at solar farms in areas vulnerable to extreme weather, including Florida, the UAE, and Saudi Arabia. 

This deal highlights the growing viability of adaptation and resilience finance as an investable asset class. This trend is driven by the growing demand for strong infrastructure in regions predisposed to climate-related disruptions. In these areas, weather events – including tornadoes, tropical storms, and sandstorms – often damage solar infrastructure, resulting in financial losses. 

Standard Chartered’s stance on climate resilience

This collaboration follows Standard Chartered’s launch of the Guide for Adaptation and Resilience Finance, developed with KPMG and the United Nations Office for Disaster Risk Reduction. The guide offers a foundation for defining and financing adaptation projects, highlighting over 100 investable activities designed to improve climate resilience. 

Standard Chartered’s officials stated that the bank is putting this guide into practice through this partnership, highlighting both the commercial potential and the broader economic benefits of investing in resilient infrastructure in regions vulnerable to extreme weather. This collaboration also represents the bank's first adaptation finance project in China.