ABSTRACT
This chapter provides a broad snapshot of the current state of the field and identify some key challenges that lay ahead. Official government policies have been complemented by quasi-legal initiatives such as the Principles for Responsible Investment (PRI), Carbon Disclosure Project (CDP) and the Equator Principles referred to above, all of which have played an important role in increasing awareness of climate and social issues inside the investment community. Climate bonds, also referred to as green bonds, represent an important new instrument for mobilizing capital for climate mitigation and adaptation projects. Debt-for-nature swap means that debt is erased in return for investments in local natural resources or conservation measures. Countries and companies around the world have invested heavily in existing carbon-intensive infrastructure. The economic life expectancy of fossil fuel production facilities and power plants is many decades, provided regular servicing and upgrades.
