The earth’s rising temperatures are already leading to increased sea levels, more intense rainfall and other damaging weather events. Climate change is expected to have an especially dramatic impact on coastal communities and the ecosystems on which they depend. CPIC’s Coastal Resilience Working Group aims to attract private investment in solutions that restore and preserve the integrity of coastal ecosystems and aid communities in adapting to rising seas and increased flooding.
The working group is co-led by The Nature Conservancy (TNC) and Environmental Defense Fund (EDF).
Channeling private finance into Marine Protected Areas
Coral reefs provide exceptional biodiversity and benefits to humans and are threatened by unsustainable fishing, careless tourism, pollution, and coastal development. Marine Protected Areas (MPAs) are among the most effective tools in reducing those threats but they often lack adequate financing. To address this challenge, and create an investable structure that attracts private sector investment, Blue Finance has developed a collaborative management partnership model for MPAs.
Environmental Impact Bond for Green Infrastructure
Resilience Bond for risk reduction
At a global level, there is a significant shortfall in funding for projects that protect communities from natural disasters. The associated risk is compounded by a gap in insurance coverage, leaving vulnerable communities and government agencies underprotected in the face of ever more frequent and severe extreme events. One new financing mechanism to bridge this gap and increase both physical and financial protection is the resilience bond, a variation on conventional catastrophe bonds. Resilience bonds value the reduction in disaster-related expected loss from the implementation of resilience projects through a rebate structure.