Financial innovation is much underutilised in dealing with the climate threat, both at the micro- and macro-levels. At the micro-level, for example, it is still impossible in some countries to acquire even a simple mortgage with which to overcome the upfront capital cost of microgeneration. At the macro level, for example, there is considerable untapped potential for climate bonds.
For the past six months the Climate Bonds Initiative, working with a range of associated groups, has been pressing political parties in the UK to adopt policies for a "Green Investment Bank" and for "Green Bonds". (You can read more about these proposals in our Climate Bonds discussion paper).
Climate war chest
www.brw.com.au | November 5–11 2009 | page 8
“Climate bonds” are the way to ramp up investment in climate-change response, in the same way that war bonds funded military spending in the two world wars, a non-profit group established to promote investment in renewable energy says.
