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Nature Bonds May Be the Next Big Thing for Emerging Markets

  • Proposals to link debt to targets for biodiversity, emissions
  • Pakistan set to be first nation to issue nature-linked bond
Ariel view of lush green forest

Photographer: Tahreer Photography/Getty Images

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Emerging-market nations are looking at issuing the first nature-linked bonds as part of talks involving the World Bank and major sovereign creditors to make their debt more sustainable.

The proposals aim to link new debt to targets for biodiversity and carbon emissions, according to Simon Zadek, chair of the Finance for Biodiversity Initiative, which published the plans on Thursday. Pakistan could be the first out of the blocks to issue such nature bonds.