Debt: Example of Emission Reduction-Linked Bond from Vietnam
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On this page: Example of Emission Reduction-Linked Bond from Vietnam. Read more below, or download the following reports: Strategic Guidance for Country System Assessments and Guidance for Countries in Assessing ERC Projects, or the Mobilizing ERC Finance Report.
In February 2023, The World Bank issued $50 million Emission Reduction-Linked Notes that mobilized private capital to finance a water purifier project in Vietnam and provided bond investors with a return linked to carbon credits, see Case Study: "Emission Reduction-Linked Notes Mobilize Private Capital for Climate Friendly Project". Transaction Structure: Figure 7 Example of Emission Reduction-Linked Bond from Vietnam. Key features included:
This section is intended to be a living document and will be reviewed at regular intervals. The Guidelines have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the Guidelines be reviewed and adapted for specific transactions. Unless expressly stated otherwise, the findings, interpretations, and conclusions expressed in the Materials in this Site are those of the various authors of the Materials and are not necessarily those of The World Bank Group, its member institutions, or their respective Boards of Executive Directors or member countries. For feedback on the content of this section of the website or suggestions for links or materials that could be included, please contact the PPPLRC at ppp@worldbank.org.
Updated: April 5, 2024
TABLE OF CONTENTS
UNLOCKING GLOBAL EMISSION REDUCTION CREDIT
1. Introduction to Emission Reduction Credits
• The World Bank's Emission Reduction Program
• Classification of Emissions Reduction Credit
• Policy Context of Emissions Reduction Credit
• Current Landscape of ERC Financing
• Financing structures to address key risks
• Debt: Example of Emission Reduction-Linked Bond from Vietnam
• Equity: The London Stock Exchange and Foresight Sustainable Forestry
• Fund: Liveligoods Carbon Fund 3
3. Key Enablers of ERC Finance
• Credit Risk in ERC Finance Transactions
• Political Risk for ERC Activities
• Rights to ERCs and Their Benefits
• Government Engagement and Public Sector Participation
4. Scaling Finance for ERC Generation
• Key Findings to Scale Up Private Sector Capital for ERC Activities
• Expand ERC-Backed Debt Issuance