Climate Stability Bonds

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Climate Stability Bonds

• Ronnie Horesh

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Climate Stability Bonds

• Goal climate stability at minimum cost

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Climate Stability Bonds

• Redeemable for guaranteed price when climate
  stability has been achieved.

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Climate Stability Bonds

• Backed by governments
• Do not bear interest
• Example bond redeemable for 1m once climate is
  stable
• Auctioned for 100 000
• Bondholders make 900 profit if they hold bond
  till redemption

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Climate Stability Bonds

• Prices vary with likelihood of climate
  stabilising
• If nobody buys bonds, their price falls
• Eventually it becomes profitable for people to
  buy and help stabilise the climate

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Climate Stability Bonds

• Bondholders have incentives to
• Co-operate with each other
• Finance climate-stabilising projects
• Pay according to performance

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Climate Stability Bonds

• Main advantages
• Efficiency cascading incentives to achieve
  target efficiently
• Outcome-focused deals with scientific
  uncertainty

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Climate Stability Bonds

• More advantages...
• Transparency and consensus
• Better money flows
• Pricing displays vital information

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Climate Stability Bonds

• Governments set goal
• Private sector achieves goal
• Governments ultimately pay for achievement

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Climate Stability Bonds

• http//SocialGoals.com
• Ronnie_at_SocialGoals.com