Introduction
Accelerating action on the Sustainable Development Goals (SDGs) and Nationally Determined Contributions (NDCs) will require not only redirecting public and private investments but also tapping into innovative financing mechanisms such as nature performance bonds. These financial mechanisms are particularly relevant as countries are looking to move forward from the impact of the pandemic on public finances.
The Intergovernmental Panel on Climate Change (IPCCC)’s latest report for the region has identified financing as the most reported obstacle for adaptation in terrestrial, freshwater, ocean and coastal ecosystems.
Nature performance bonds allow countries to target sustainable finance in keeping with international environmental goals, which is particularly relevant to the Latin American and the Caribbean (LAC) region as it houses over 40% of the Earth’s biodiversity. Ecosystems in LAC provide valuable climate benefits in the form of carbon mitigation and adaptation to climate impacts. However, they are also valuable to the region’s socio-economic development, with healthy ecosystems providing the basis for agriculture, tourism, fishing and forestry livelihoods. Studies have estimated the annual value of terrestrial ecosystem benefits at USD 15.3 trillion.
Investing in nature allows countries to address the dual crisis of biodiversity and climate while recognizing that nature is a fundamental pillar of sustainable development.
Skills you will gain
What you will learn
- Participants will learn about the global opportunity for debt financing in LAC while broadening their understanding in the thematic financing landscape and the role of different bonds, as well as how Nature Performance Bonds (NPBs) fit into the equation.
- Participants will understand the linkages between Nature Performance Bonds (NPBs), the country’s natural capital and sovereign debt while differentiating NPBs, sustainability-linked bonds, and debt (for nature) swaps as well as when they make sense.
- Participants will learn about the Market standards, the International Green Bond regulatory framework, and will be exposed to the challenges faced by Issuers by understanding the considerations before issuing a Green Bond.
- Participants will learn about the typology of investors who invest in the various debt Instruments and understand investor expectations/indices, while seeing Benefits of Green Bond for Investors and the challenges faced by stakeholders in the Green Bond Market
- Participants will be exposed to the life cycle of Thematic Bond Issuance process, the factors that influence Thematic Bond Issuance, the importance of the Debt Sustainability framework in the Issuance process and UNDPs Debt Offerings.
- Participants will be introduced to the market dynamics, size, volume and Issuers and the growth of the sustainable bonds market, while learning about the sectoral breakdown of the use of proceeds.
- Participants will learn about the global opportunity for debt financing in LAC while broadening their understanding in the thematic financing landscape and the role of different bonds, as well as how Nature Performance Bonds (NPBs) fit into the equation.
- Participants will understand the linkages between Nature Performance Bonds (NPBs), the country’s natural capital and sovereign debt while differentiating NPBs, sustainability-linked bonds, and debt (for nature) swaps as well as when they make sense.
- Participants will learn about the Market standards, the International Green Bond regulatory framework, and will be exposed to the challenges faced by Issuers by understanding the considerations before issuing a Green Bond.
- Participants will learn about the typology of investors who invest in the various debt Instruments and understand investor expectations/indices, while seeing Benefits of Green Bond for Investors and the challenges faced by stakeholders in the Green Bond Market
- Participants will be exposed to the life cycle of Thematic Bond Issuance process, the factors that influence Thematic Bond Issuance, the importance of the Debt Sustainability framework in the Issuance process and UNDPs Debt Offerings.
- Participants will be introduced to the market dynamics, size, volume and Issuers and the growth of the sustainable bonds market, while learning about the sectoral breakdown of the use of proceeds.
About this course
This course raises awareness about the use of innovative financing mechanisms, particularly nature performance bonds, and how these can be leveraged to meet the SDG and NDC targets in a way that is beneficial to countries in their debt management.
Completion requirements
- All components mandatory
- All components mandatory
Course modules
Module 1: Overview of the Latin America and the Caribbean context and types of financing instruments 2 activities, 1 quiz
Module 2: Nature Performance Bonds (NPBs) in detail 2 activities, 1 quiz
Module 3: Market standards 1 activity, 1 quiz
Module 4: Typology of investors 1 activity, 1 quiz
Module 5: Lifecycle of a bond issuance 1 activity, 1 quiz
Module 6: Market dynamics 1 activity, 1 quiz
FAQs
1. How many languages is the course available in?
The course is available in English and Spanish.
2. Do I need any qualifications to enroll in this course?
No. This course is geared towards ministries of finance, ministries of budget and planning, ministries for environment, and ministries of other sectors that are prioritized in the countries’ NDC (energy, forestry, agriculture, transport, waste, etc.), national and regional banks, financial sector regulators, finance institutions, investment banks, commercial banks as well as UNDP staff. However, the course is free and open to everyone.
3. What are the technical requirements to enroll in this course?
Participants should be able to access the Internet, even if only periodically, in order to access the course materials and complete the course requirements.
4. What are the requirements to receive the certificate of completion?
In order to receive the certificate of course completion, participants must complete all online lessons, pass six quizzes, and complete the post-course survey. These are the ONLY requirements to receive the certificate.
5. Are there any system requirements for accessing course content?
No, there are no specific system requirements to view the content of this course. However, we recommend using Chrome for the best user experience.
6. How do I receive my course completion certificate when I complete the course?
Once you complete the course requirements, the certificate of course completion will be generated automatically and will become available for download in PDF format directly from the course home page. To download the certificate, you will need to click the “Download my certificate” button right above the course content section of the course home page.
7. How can I get in touch with the course organizers?
For any questions about the course, please contact the course team at info@learningfornature.org.