Title: Recovery Bonds: Innovative Sovereign Bond Structures for Financing a Sustainable Recovery

Language: English

Type: Document

Nature: Report

Published: May 1, 2021


Region: Global

Country: Global / Non-Specific

Topic: Emission Reduction Program

Keywords: PPPs by Topic *, Emission Reduction Program **, Financing

Document Link(s):


Document Summary:

This paper assesses the potential for Recovery Bonds to help sovereigns raise capital to fund a sustainable and climate-resilient post-COVID recovery. As climate impacts become more severe, countries need targeted approaches to capital borrowing and deployment that is designed to decrease emissions, increase renewable energy distribution and other climate mitigation and adaptation solutions, and create longlasting green jobs for a secure economy.


Document Details:

Both sovereign green bonds and FFSR bonds offer a promising framework to deliver sustainable recovery finance. There are significant opportunities for investment in key sectors like renewable energy, clean water supply, and waste management, as well as the potential to reduce reliance on fossil fuels. These sectors are particularly important to a post-COVID-19 economic recovery and will require trillions of dollars of investment over the coming decades. Both bonds have the potential to fund a sustainable recovery with a focus on climate adaptation and mitigation, create long-term jobs in the green energy sphere, and lower country emissions.


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