• F4B

Nature Bonds May Be the Next Big Thing for Emerging Markets

Todd Gillespie and Greg Ritchie of Bloomberg reported on F4B's work on a Nature and Climate debt facility:

Emerging-market nations are looking at issuing the first nature-linked bonds as part of talks involving the World Bank and major sovereign creditors to make their debt more sustainable.

The group’s proposals would tie the cost of debt repayments to quantified biodiversity and emissions-reductions targets, meaning borrowers would have to pay less interest if they hit those. Countries might also be able to pay back debt using carbon credits. Pakistan is set to use this system to issue a so-called nature-performance bond of up $1 billion this year, according to Malik Amin Aslam, a climate-change adviser to Prime Minister Imran Khan.