UNDP has launched a self-paced online course to raise awareness about the use of innovative financing mechanisms, particularly Nature Performance Bonds, and how they can be leveraged to meet countries’ targets on nature in a way that is beneficial to countries in their debt management.
Accelerating action on countries’ climate pledges and development plans will require public and private investments, as well as tapping into innovative financing mechanisms. Such financial mechanisms are particularly relevant as countries face increasingly limited fiscal space and strain on public finances, exacerbated by high debt burdens and the ongoing impact of the Covid-19 pandemic. The Intergovernmental Panel on Climate Change (IPCC) has identified financing as a principal barrier for adaptation in terrestrial, freshwater, ocean and coastal ecosystems in the Latin America and Caribbean (LAC) region.
Ecosystems in LAC provide valuable climate benefits in the form of carbon mitigation and adaptation to climate impacts. They are also valuable to the region’s socio-economic development, with healthy ecosystems providing the basis for agriculture, tourism, fishing and forestry livelihoods. Studies have estimated the annual value of terrestrial ecosystem benefits at US$15.3 trillion within the region.
Nature Performance Bonds allow countries to target sustainable finance while keeping with international environmental goals, which is particularly relevant to LAC, a region that houses half of the world’s biodiversity.
Drawing from experiences in LAC, UNDP’s new course explores the global opportunities for debt financing, the different types of bonds available and the linkages between these bonds and countries’ natural capital and sovereign debt. Those enrolled in the course also have the opportunity to delve into the various market standards and regulatory frameworks, the challenges faced by issuers, and the type of investors who might invest in such debt instruments.
The course is directed towards policy practitioners in the areas of finance, environment, energy, or any sector prioritized in countries’ NDCs, financial institutions, and anyone working in international development. It is also open to anyone interested in learning more about the subject.
Participants can take the training in English or Spanish.
To register, visit the Learning for Nature site here.
