Financing High Performance Climate Adaptation in Agriculture: Climate Bonds for Multi-Functional Water Harvesting Infrastructure on the Canadian Prairies

International capital markets are responding to the global challenge of climate change, including through the use of labeled green and climate bonds earmarked for infrastructure projects associated with de-carbonization and to a lesser extent, projects that increase resilience to the impacts of climate change. The potential to apply emerging climate bond certification standards to agricultural water management projects in major food production regions is examined with respect to a specific example of multi-functional distributed water harvesting on the Canadian Prairies, where climate impacts are projected to be high. The diverse range of co-benefits is examined using an ecosystem service lens, and they contribute to the overall value proposition of the infrastructure bond. Certification of a distributed water harvesting infrastructure bond under the Climate Bond Standard water criteria is feasible given climate bond issue precedents. The use of ecosystem service co-benefits as additional investment criteria are recommended as relevant bond certification standards continue to evolve.