Document summary
The Role of the City's Financial Services Sector in Supporting Action on Climate Change. If Copenhagen is to succeed Kyoto it is essential policymakers send clear, strong signals of their commitment. A huge investment in clean technology is needed to prevent global warming, but given the scale of investment required plus deteriorating public finances in many countries it is only by leveraging private sector capital that the challenge can be met. Innovative financing techniques are required and the report looks at several financing structures which could be harnessed to assist in the fight against climate change. The role of ‘trade’ in cap-and-trade is considered along with index-linked carbon bonds, forest-backed bonds and weather derivatives.