HSBC to fund Australia-first project with The Nature Conservancy Australia as part of US$100 million climate partnership

The project, which is called Blue Impact Bonds for Nature, will be funded by an US$800,000 grant from HSBC. TNC Australia will use the grant to identify nature-based restoration activities which will improve livelihoods, biodiversity and climate change mitigation outcomes on the mid-north NSW coast.

The project will also establish a framework for capital market assets that can be used to raise conservation finance, in a further step toward establishing natural capital as an investment asset class.

Blue Impact Bonds for Nature is part of HSBC’s new global Climate Solutions Partnership, which will provide US$100 million in funding over five years to help climate-related companies and projects reach commercial viability.

The Australian-first project also builds on previous Mapping Ocean Wealth Australia research funded by HSBC and supported by TNC Australia. This research quantified both the economic contribution of our marine ecosystems and the role blue carbon plays in protecting the environment.

“Rehabilitation of coastal areas is an important factor in the transition to net zero, as it can increase carbon sequestration, create new fish habitats and improve resilience to flooding and rising sea levels,” said HSBC Australia’s Head of Sustainability, Alpa Bhattacharjee.

“Coastal restoration activities can also provide a direct boost to local employment and generate additional jobs in industries such as tourism and fishing,” Ms Bhattacharjee said.

Commenting on the research, Alison Rowe, Managing Director of TNC Australia, said: “We know that if we are to halt the decline of marine and coastal ecosystems and their many benefits we have to act within the next decade.

“This project is a fantastic opportunity to mobilise private finance at unprecedented scales to support solutions that benefit nature, people and economies. There has never been a more exciting time to join forces with the private sector and governments to solve our biggest conservation challenges.”

The Climate Solutions Partnership is part of HSBC’s broader climate strategy announced in October 2020. HSBC aims to align its provision of finance to net zero by 2050 or sooner, in line with the Paris Agreement goals. As part of HSBC’s ambition to support its customers in their transition to net zero and a sustainable future, the bank aims to provide and facilitate $750bn to $1tn of sustainable finance and investments by 2030.

ABOUT THE HSBC CLIMATE SOLUTIONS PARTNERSHIP

The Climate Solutions Partnership was developed by HSBC in partnership with World Resources Institute and WWF, and aims to bring emerging climate solutions to commercial viability and scale.

It will work to remove barriers and create incentives in three areas:

1. Energy transition: The partnership includes renewables and/or energy efficiency programmes to support Asia’s energy sector to shift towards renewables, and scale efficiency initiatives in key sectors – such as healthcare, textiles, and apparel.
2. Nature-based solutions: Working with a network of local partners, these projects will contribute to net zero goals by better enabling natural CO2 capture, while increasing social and environmental resilience in markets most at risk from climate change – including wetlands, mangroves and forests.
3. Business innovation: Start-up firms and next-generation technologies offer the potential to develop new approaches to cutting carbon emissions. Utilising WWF’s Impactio collaboration platform, the partnership will help support business innovations to scale, in collaboration with leading universities, research institutes, incubators and accelerators.