What's Special About Standard Chartered's Latest Green Deal?
Standard Chartered has completed its first adaptation finance transaction for a corporate client — a landmark moment in its efforts to support climate resilience around the world.
The deal, facilitated for JinkoSolar, is set to enable the trade of advanced solar modules in the US, the UAE and Saudi Arabia.
This kit is designed to withstand extreme weather conditions, meaning that energy production can be maintained even in challenging circumstances.
As the frequency and severity of climate-related disasters increase, adaptation finance is a tranche of banking that is gaining more and more prominence.
It is an essential tool for mitigating economic losses caused by unpredictable weather conditions or events — something that climate change promises to bring in tow.
The International Chamber of Commerce (ICC) reported that climate-related extreme weather events have resulted in cumulative losses of approximately US$2tn over the past decade.
In 2024 alone, economic damages reached US$451bn.
Hurricane Milton, the floods across southeast Spain and the devastating wildfires across West Africa are just a handful of examples of catastrophic weather events that happened last year.
The fallout from these events has highlighted the pressing need for increased resilience for infrastructure, as well as the investments to make that happen.
A new benchmark for adaptation finance
This transaction follows the launch of Standard Chartered’s Guide for Adaptation and Resilience Finance, which was developed in collaboration with KPMG and the United Nations Office for Disaster Risk Reduction.
The guide offers a framework for defining and financing adaptation projects, listing more than 100 investable activities aimed at enhancing climate resilience.
The bank provided Bank Guarantees (BGs) to facilitate the delivery of JinkoSolar’s Tiger Neo N-type solar modules, which are engineered to withstand extreme environmental conditions.
These modules will be deployed at solar farms in regions vulnerable to severe storms and high winds, including Florida, the UAE and Saudi Arabia.
The necessity of such technology is evident in the increasing frequency of extreme weather events.
Ben Hung, President, International at Standard Chartered, emphasises the significance of the deal.
“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,” he says.
“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.”
Investing in climate resilience
Adaptation finance is emerging as a critical asset class, addressing the urgent need to build resilience against climate-related disruptions.
“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,” says JinkoSolar’s Chief Financial Officer, Haiyun Cao.
“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.”
The deal also marks Standard Chartered’s first labelled adaptation finance transaction in China, which speaks to the bank’s global focus when it comes to sustainability and resilience.
Scaling adaptation finance in the private sector
The growing financial impact of extreme weather necessitates a broader engagement in adaptation finance.
The transaction with JinkoSolar builds on Standard Chartered’s previous adaptation finance deal with an insurance client in 2023, which focused on financial protection against extreme weather-related changes in river and wind levels for renewable energy businesses.
“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,” explains Tracy Wong Harris, Head of Sustainable Finance GCNA at Standard Chartered.
As climate risks continue to escalate, the financial sector’s role in supporting adaptation and resilience will be crucial.
Marisa Drew, Standard Chartered’s CSO, also believes it could be a commercial opportunity.
“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,” she says.
“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.”
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