[op-ed snap] Climate-resilient bonds

  1. If Paris was about committing to prevent the rise of temperature beyond 2 degrees Celsius, Marrakech aimed on loss and damage
  2. Research by CEEW estimates that direct costs of extreme events spurred by climate change in India are $5-6 billion per annum
  3. Extreme events and changing precipitation seem to be the new norm in the India we inhabit
  4. We have witnessed innumerous instances of flooding, heat and cold waves and major drought. All these have far-reaching financial impacts
  5. Climate-resilient bonds are an innovative way for countries around the world to use public money to drive private investment from debt markets into climate-adaptation market
  6. Impact of loss and damage from climate risk should be distributed thinly between investors
  7. Green bond: an environment bond that channels debt capital for projects with environmental benefits
  8. Another climate-resilient bond is publicly issued bond to insure against the outcome for a specific climate risk
  9. Case Study: government of WB could issue a tax-free—yielding market return—bond for a five-year duration
  10. In case of major flooding due to a rise in precipitation in WB, the investment is forfeited by the investor and used by state to cover loss and damage caused by the flooding
  11. Another climate-resilient bond is when funds raised to protect against climate risks are used for adaptation activities
  12. It combines borrowing from the debt market for climate projects, and sharing the climate risk between multiple individual investors
Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols
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