The United Nations is thinking about offering a new type of bond intended to increase the building of clean energy projects. The bonds would be backed by the issuing government and once they mature, investors would receive carbon credits, tradable securities each guaranteeing a metric ton of carbon dioxide reductions were made. Bond investors would not have to get involved in the full complexity of projects.
Clearly the U.N. Framework Convention on Climate Change (UNFCCC) wants to enhance the Kyoto Protocol because signatory countries are not meeting their greenhouse gas reduction targets. It expires in 2012 and it does not set reductions targets for developing countries such as India and China. The bonds would help encourage investment in nations struggling to meet their renewable energy targets. (The Washington Times 5/31/08)
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