The role bonds in financing climate resilient economy

Więckowska, Marcelina

doi:10.12775/cjfa.2013.011

Cited by 5 publications

(5 citation statements)

References 5 publications

(1 reference statement)

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“…Global organisations such as the United Nations and World Bank as well as several researchers have pushed for the advancement of climate change resilience research and investments (Więckowska 2013;Vaijhala and Rhodes 2018;Cox 2021;Ando et al 2022;World Bank 2022;UNDRR 2023). Furthermore, the UN has adopted a net-zero carbon-free world goal by 2050 (CoP 27 and CoP 28) as a way of combatting the effects of climate change, which are believed to have triggered some devastating catastrophe events such as cyclones, hurricanes, earthquakes, tornados, floods, droughts, etc.…”

Section: Addressing Key Knowledge Gaps In Sa's Climate Change Resiliencementioning

confidence: 99%

“…Thus, the CAT R Bond provides extra climate change coverage beyond traditional (re)insurance coverage. This is further improved by the extra benefit that comes to both the sponsors and investors in the form of reduced premiums and reduced risk to the investment principal, respectively, as a result from the implementation of the specific climate resilience projects (Więckowska 2013).…”

Section: Explanation Of the Designed Cat R Bond Productmentioning

confidence: 99%

“…Therefore, this paper looks at the possibility of developing CAT R Bonds as financial products to finance climate change resilience in South Africa. The term "resilience" represents both environmental and financial aspects (Więckowska 2013). Climate change resilience is about successfully coping with and managing the impacts of climate change while preventing those impacts from growing worse (Union of Concerned Scientists UCS 2022 and NDMC 2023).…”

Section: Introductionmentioning

confidence: 99%

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Development of New Products for Climate Change Resilience in South Africa—The Catastrophe Resilience Bond Introduction

Mutsvene,

Klingelhöfer

2024

JRFM

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Climate change has brought several natural disasters to South Africa in the form of floods, heat waves, and droughts. Neighbouring countries are also experiencing tropical cyclones, almost on a yearly basis. The insurance sector is faced with an increased level of climate change risk with individuals, corporates, and even the government approaching it for financial cover. However, with an increased level of competition in the insurance sector, (re)insurers must engage in massive product research and development. Therefore, this paper looks at the possibility of the insurance industry developing new products in the form of catastrophe resilience bonds (CAT R Bonds). A qualitative approach is used following content analysis of (re)insurers’ product development policies, marketing documents, company reports, and risk management reports as well as the Conference of Parties 27 and 28 resolution papers. The findings reveal that (re)insurers’ underwriting capacity, reinsurance protection, and innovative and creative product development increase because of CAT R Bonds. CAT R Bonds enhance the interaction between the capital market and money market, thereby giving speculative investors another investment option. Increased investment into new product development such as CAT R Bonds must continue in South Africa in pursuit of climate change resilience goals.

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Section: Addressing Key Knowledge Gaps In Sa's Climate Change Resiliencementioning

confidence: 99%

Section: Explanation Of the Designed Cat R Bond Productmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Development of New Products for Climate Change Resilience in South Africa—The Catastrophe Resilience Bond Introduction

Mutsvene,

Klingelhöfer

2024

JRFM

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“…In this regard, environmental finance and environmental assets becomes somewhat pragmatically synchronous -they inter-exist to enhance ecological integration as core component of corporate existence. To this end, Więckowska (2013) As an instance, a corporate may increase its transferable units for greenhouse gas emission with concomitant financial benefits therefrom (Jankowski, 2013).…”

Section: Environmental Finance For Corporate Adaptive Capacity Enviro...mentioning

confidence: 99%

A Review of Stock Market Impact of Environmental Cataclysms and Lessons for Investors

Ngwakwe

2023

CJFA

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The objective of this paper is to present a review analysis of stock market impact of environmental disaster with the factors that orchestrate the impact, and to offer a novel framework for investors and managers. The paper applied an in-depth empirical review and synthesis method. Findings from the review and synthesis of empirical literature provide strong evidence that environmental disasters have diverse effects on the stock markets with majority of the literature reporting adverse effects on the stock markets. Additionally, findings are more preponderant on short run impact than on long run effects. Findings also show that environmental disasters may offer unique arbitrage opportunities for short-selling investors. The paper concludes by highlighting the capacity of environmental finance as one of the catalysts to bolster corporate adaptive capacity to environmental disaster. Furthermore, the degree of environmental disaster impact on stock market may depend on factors such as the type of environmental disaster, geographical location of environmental disaster, economic sector, stage of economic development, length of disaster and intensity of disaster. Accordingly, the paper develops a framework, which is recommended as a model for further research agenda on environmental disaster effect on stock markets.

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“…However, this may aligned with climate bonds which have independent review [4]. This bond may have benefited to climate change issues [5].…”

Section: Literature Reviewmentioning

confidence: 99%

The relationship of the green bond and the Social Development Goals (SDGs) targets: a case study of Vigeo Eiris

Siswantoro

2018

E3S Web Conf.

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Only Vigeo Eiris relates the green bond initial assessment with the Social Development Goals (SDGs) targets. Thus, this research would analyse the Vigeo Eiris’ opinion about the relationship of the green bond and SDGs targets. This would create new insights into the green bond opinion, as other second independent reviews do not propose these issues in the beginning. The research method employs a qualitative method using opinion report of the green bond by Vigeo Eiris after SDGs were launched. However, before SGDs were launched, this agency did not relate to Millennium Development Goals (MDGs), which actually the former action of SDGs. The result showed that the green bond has important roles to mitigate Greenhouse Gases (GHG). In addition, the direct targets to SGDs are mostly 7 aspects. Affordable and clean energy (12 points); 13. Climate Action (9 points); 12. Sustainable Consumption & Production (8 points); 9. Industry, Innovation, & Infrastructure; and 11. Sustainable Cities & Communities (7 points respectively) of the total 19 sample. However, the main issues are that there is no clear quantitative target for these SDGs targets and not all issuers have SDGs targets (14 out of 19 samples)

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The role bonds in financing climate resilient economy

Cited by 5 publications

References 5 publications

Development of New Products for Climate Change Resilience in South Africa—The Catastrophe Resilience Bond Introduction

Development of New Products for Climate Change Resilience in South Africa—The Catastrophe Resilience Bond Introduction

A Review of Stock Market Impact of Environmental Cataclysms and Lessons for Investors

The relationship of the green bond and the Social Development Goals (SDGs) targets: a case study of Vigeo Eiris

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