Paris Climate Bond

Case Studies

Climate Mundial is proud to pioneer on the development of the Paris Climate Bond concept.

The Paris Climate Bond (PCB) is a refinancing structure exclusively established for projects registered under the Clean Development Mechanism (CDM) of the United Nations Framework Convention on Climate Change (UNFCCC).

PCB offers a financial incentive to encourage owners of existing and registered projects in emerging markets to refinance; and includes contractual mechanisms to ensure measurement, verification and issuance of Certified Emission Reductions (CER) continues.

The CERs issued by projects participating in PCB are surrendered to the issuing facility and cancelled through the UNFCCC to ensure the highest levels of environmental integrity. The PCB security is issued to raise capital from institutional and other investors, primarily from the private sector, and delivers a lower cost of capital.

Lower cost of capital can support returns on investment to project developers. The developers can also pass through savings to consumers, providing lower priced and more affordable access to clean energy in developing countries.

How PCB differs from a Green Bond

The PCB is similar to a green bond, but differs in that it is specifically designed to enable the private sector to contribute to implementation of the Paris Agreement in the area of climate finance.

Another key point of differentiation is that all projects participating in PCB are certified as additional to business as usual through the UNFCCC, have been formally approved by their Host Country and all project details are published via the CDM website and are therefore fully traceable for investors.

We would be delighted to provide interested parties with further information about the Paris Climate Bond concept.

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Climate Mundial is a climate finance and sustainable development firm headquartered in London, whose mission is to assist clients develop and finance renewable energy, carbon mitigation and climate adaptation projects in developing countries