Climate bond financing urban adaptation actions to reduce heat stress in Paris

This case study was originally published on the Climate-ADAPT website – for more information please visit the case study page. Climate-ADAPT aims to support Europe in adapting to climate change by helping users to access and share data and information. The platform includes the Climate-ADAPT database that contains quality checked information that can be easily searched.

Summary

To highlight its commitment to sustainable development, in 2015, the City of Paris issued the ‘Climate Bond’ to finance climate and energy projects. The total size of the bond is €300 million, with a running time until May 2031. The bond aims at private investors who consider it as a secondary advantage to invest in the sustainability of the city of Paris. They will receive a profit rate of 1.75% per year. 20% of the climate bond funds have been assigned to adaptation projects.

Currently, two projects with a climate adaptation objective have been included in the bond and are being implemented: planting 20,000 trees in the city and creating 30 hectares of new parks by 2020. The objective of both adaptation projects under implementation within the climate bond is to reduce the urban heat island effect and increase thermal comfort within the city, which mainly relates to objectives 1and 3 of the Adaptation Strategy.

You can read the full case study on the Climate-ADAPT website.

Further resources

• Paris for Climate
• Climate Bonds Initiative