UTS Institute for Sustainable Futures’ Post

Issuing green treasury bonds addresses a major missing piece in the sustainable finance jigsaw. As climate risk is integrated into finance, the real opportunity lies in using a risk-free rate for green bonds to integrate sustainability into all forms of finance. https://lnkd.in/g9HVmkfC

We need more GSS+ bond issuance! Investors see these securities as highly defensible impact investments in an environment of increased scrutiny and oversight.

Interested in how Green Treasury Bonds can support Australia's sustainable finance market and our transition to net zero? I wrote a piece for CEDA - Committee for Economic Development of Australia https://lnkd.in/g-w3yQUm

A new report warns that 47 emerging countries could face insolvency within five years due to high climate adaptation costs, with debt payments projected to reach $400 billion this year. Urgent global financial reforms and increased affordable financing are needed to prevent default and achieve sustainability goals. #ClimateCrisis

Read #AOFM Head of Sustainable Finance, Brad Parry’s, article for CEDA - Committee for Economic Development of Australia. Brad writes about how Australia’s transition to net zero will be capital-intensive and require significant investment, and how Green Treasury Bonds allow investors to participate in the transition. To read the full article, visit https://lnkd.in/gunxFek3

#Financing needs in low- and middle-income countries are at all-time high. #Grant allocations are not related to which countries face the greatest debt struggles; Macro-Financial Assistance is limited to the #EU’s neighbourhood; and the European Investment Bank’s sovereign lending options fall short compared to other development banks. Continuing our EU policy series, Mikaela Gavas & Samuel Pleeck suggest three #policy innovations for the EU as it starts negotiations for the next Multiannual Financial Framework. Learn how concessional loans, flexible/liquid lending, and re-assessing EU guarantee instruments can help ⬇ https://bit.ly/3MzOoBC

I have a question to the #climatepolicy fans among you: Assume a country has pledged a unilateral Nationally Determined Contribution (NDC) under the #ParisAgreement, but such country is over-indebted, so can impossibly meet its NDC on its own due to lack of investable capital. Can projects under article 6 in such a country still lead to double-counting, and is there still a need for corresponding adjustments - assuming international finance is needed to meet the NDA? https://lnkd.in/daipvS78

A strong indication that the finance sector is moving in a climate-positive direction, with debt repayments for green loans higher than those for fossil fuels for the second year running in 2023. Investment in green projects was also higher than that for fossil fuels. However, the importance of governance is also evident, with European banks leading US banks for green investment, largely as a result of stronger regulatory frameworks requiring them to step up these commitments. Read the full article here: https://lnkd.in/gy55sYMT #climatefinance #climateaction #climatechange #greenbonds #greenfinance #greenloans #environmentalfinance #carbonmarkets #carbonfarming #carbonfinance #netzero #netnegative

Debt payments by the 50 countries most vulnerable to climate crisis have soared to their highest level in over 30 years, doubling since the pandemic. 🌍📈 Debt Justice reports that these nations now allocate 15.5% of government revenues to external creditors, up from less than 8% pre-COVID-19. Record debt levels are crippling their ability to tackle the climate emergency. 🌱💸 Heidi Chow of Debt Justice calls for swift, effective debt relief. The UK is urged to ensure private lenders participate in international debt relief agreements. 🇬🇧⚖️ Of the external interest payments, 38% go to private lenders, 35% to multilateral institutions, 14% to China, and 13% to other governments. 🌐💵 Previous debt relief rounds in the late '90s and mid-2000s had significantly reduced burdens, but repayments began rising steadily in the 2010s, spiking post-2020. 📆⬆️ The pandemic debt suspension has ended, and rising global interest rates and a strong US dollar have exacerbated the debt crisis. 💲📊 As a 10-day climate finance conference begins in Bonn, Debt Justice highlights Zambia’s plight. Despite sealing a debt restructuring deal, Zambia faces unfair terms, demanding higher payments if the economy improves but no reductions in case of shocks like droughts. 🇿🇲💧 Debt Justice advocates for debt cancellation and rich countries to deliver adequate, grant-based climate finance. 🌿💰 #DebtRelief #ClimateCrisis #DebtJustice #SustainableFinance #ClimateAction #DebtCancellation #FinancialJustice #GlobalEconomy #ClimateChange #DebtBurden #EconomicJustice #ClimateFinance #Zambia #DebtCrisis #SustainableDevelopment #GlobalImpact #EconomicGrowth #FinancialEquity #DebtSustainability #ClimateEmergency #GreenFinance #DebtSolutions #InternationalAid #DebtManagement #EnvironmentalJustice #EconomicRecovery #GlobalPartnerships #ClimateSolutions #FinancialResilience #ClimateResponsibility