Nature-Based Finance – Using Bonds To Restore The Planet

Bonds can be structured to help reverse specific environmental harms and could be a powerful tool in our efforts to restore the planet. For example, overfishing has been a leading driver of oceanic habitat degradation for decades, because fishing companies are financially incentivised to fish as much as they legally can. Similarly, deforestation is hard to stop because multiple stakeholders have a financial incentive in it. But what if these incentives were reversed? Designing financing instruments where investors, lenders and other stakeholders are financially incentivized to ensure that the state of the relevant natural ecosystem, species or habitat is improved offers a powerful way to reverse the status quo.

In this webinar, Planet Tracker’s experts will discuss two examples of financial instruments (a Deforestation-Linked Sovereign Bond and a Blue Recovery Bond) that could be used to help tackle problems such as these. The Deforestation-Linked Sovereign Bond proposed by Planet Tracker incentivises the issuing government to reduce deforestation by linking better financing terms to achieving deforestation reduction targets. Similarly, Planet Tracker’s award-winning Blue Recovery Bond concept incentivises fishing companies and their investors to fish less by financially rewarding a period of fishing restraint, which enables the rebuilding of fish populations, ensuring greater catches and associated profits in the medium-term. Whether by amending existing tools such as sustainability-linked bonds or by creating purpose-built instruments, there are multiple possibilities to structure the integration of nature conservation objectives into the legal framework of financing instruments, and Planet Tracker’s engagement with the financial community shows that demand for them is high and supply-constrained.


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.

François Mosnier brings more than 10 years of experience working across finance, nature conservation and sustainable farming. Prior to joining Planet Tracker, he was a financial analyst at Exane BNP Paribas and Capital Group, and a conservation finance specialist at Conservation Capital.

Wednesday, 03 August 2022

15:00 - 15:45 BST


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  • Peter Elwin.jpg
    Peter Elwin
    Director of Fixed Income & Head of Land Use and Textiles Programmes
    Planet Tracker
  • Francois Mosnier
    François Mosnier
    Head of Oceans Programme
    Planet Tracker
  • Simon Mills
    Simon Mills
    Senior Consultant
    Z/Yen Group