ESG & Investing
World’s First Carbon Removal Bond to Fund Amazon Reforestation
- World Bank priced its largest outcome bond for reforestation
- Microsoft to buy carbon removal units generated from projects
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A new kind of bond is trying to save the Amazon rainforest by linking investors’ financial returns to the amount of carbon removed from the atmosphere.
The World Bank sold a nine-year, $225 million note this week which will help raise funds for reforestation in the Amazon. Unlike prior bonds, buyers’ returns will be linked to the climate impact of the new trees, rather than to the avoidance of emissions through curbing deforestation.