1.    Policy models and advice
Rapid change at very large scale will depend on a close working relationship between government, finance and industry. The Climate Bonds Initiative is developing policy proposals for all three sectors. Our interest is in the engineering of rapid and large-scale mitigation opportunities suitable for long-term debt finance.

Areas of current focus are:

  • Using Climate Bonds to fund public/private feed-in tariffs without further impost on today’s energy consumers.
  • Large-scale energy efficiency (e.g. how we can get to 85% of housing stock within 10 years).

In 2010 we plan to expand our focus to look at financing opportunities in terrestrial sequestration and in adaptation, for example using the bond-funded feed-in tariff for water infrastructure development in regions threatened by climate change.

The Climate Bonds Initiative provides advice to government stakeholders, industry and NGOs on models for securing green inward debt finance that accelerates low-carbon industry development.

2.    Developing agreed definitions and standards for Climate Bonds
An international working group is developing proposals for a global, multi-stakeholder, standards development process and architecture for definitions of Climate Bonds. This will provide greater certainty for investors about the climate benefit of their investments.

3.    Demonstration projects
The Climate Bonds Initiative is working with a number of small countries and states to create ‘proof-of-concept’ projects that will help them achieve energy security in the face of volatile fossil-fuel energy prices, and demonstrate investibility and financing with Climate Bonds.