Deforestation is a significant problem for the world – accelerating climate change and threatening the natural capital base that underpins the economic strength of a number of countries. A Deforestation-Linked Sovereign Bond (DLSB) can help countries with valuable state-owned forests to fund their transition to a sustainable economy. A DLSB would align the government’s fiscal and sustainability incentives, and boost the country’s sovereign health.
A Deforestation-Linked Sovereign Bond is a type of Performance Bond, a flexible financial instrument that does not restrict a government in terms of the use of proceeds, but which commits the sovereign to coupons which vary depending on its success or failure in meeting specific Sustainability Performance Targets (SPTs), in this case, deforestation.
In this webinar, we will use Brazil as a DLSB case study. Increasing deforestation remains the biggest threat to Brazil’s natural capital base, accelerating global warming, harming biodiversity, and impacting Brazil’s rainfall and temperature patterns. As a result, Brazil’s current climate trajectory is rated ‘highly insufficient’ by ClimateActionTracker.org (on a path to 3-4oC by 2050 compared to the Paris target of 2oC).
We will discuss:
Peter Elwin is Director of Fixed Income, and Head of the Land Use and Textiles Programmes, at financial think tank Planet Tracker and has over 20 years of financial markets experience in senior management and functional roles on the buy side and sell side. His experience covers equity and credit research, accounting, valuation, natural capital, sustainability, strategy, and operations.
Peter was previously Head of Research at the Universities Superannuation Scheme (USS), one of the largest UK private pension schemes with over £60bn under management. Before joining USS, Peter was Deputy Head of European Research and the #1-rated Global Head of Pensions, Valuation, & Accounting research at JP Morgan.
Wednesday, 15 September 2021
15:00 - 15:45 BST
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