Scaling climate resilience through debt markets
Senate House Alumni Lecture Theatre (SALT) SOAS, 10 Thornhaugh Street, Russell Square, London WC1H 0XG
About this Event
Join us during London Climate Action Week for an engaging discussion on the role of debt markets in scaling climate resilience. Organised jointly by the SOAS Centre for Sustainable Finance and the Anthropocene Fixed Income Institute, this event will explore ways to address the urgent need for more investment in adaptation and resilience, focusing on emerging markets and developing economies.
Many countries vulnerable to climate change are exposed to a vicious circle of higher credit risks, rising borrowing costs and constrained fiscal space amid high investment needs. Besides mobilising domestic resources and international capital for climate finance, lowering the cost of capital is critical in an environment of high debt levels in several countries.
For issuers with market access, bond markets play a key role in raising capital, diversifying funding sources and crowding in investors. In this context, performance-linked debt structures can help to align incentives across stakeholders. Embedding credit enhancements in financing structures has the potential to reduce the cost of capital and mobilise capital – both would help to scale investment in climate resilience.
Other mechanisms to address key challenges are climate-resilient debt clauses, local capital market development, and on-lending via multilateral development banks or other entities. Looking at the various approaches, what are the opportunities and obstacles to scale climate resilience?
SOAS Centre for Sustainable Finance / Anthropocene Fixed Income Institute
The SOAS Centre for Sustainable Finance aims to advance the transition to an equitable, low-carbon economy by providing a forum for interdisciplinary research and teaching on sustainable finance and investment.
The Anthropocene Fixed Income Institute (AFII) empowers the global fixed income market to drive the climate and nature transition. A non-profit organisation, AFII provides fixed income investors with the insights and tools they need to align their portfolios with ambitious climate and nature targets.
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