Sustainable Land Bonds

The report introduces Sustainable Land Bonds (SLBs), which are sovereign bonds used to finance low-carbon land management. Unlike standard bonds, SLBs are paired with Results-Based Payment (RBP) agreements where third parties offset interest costs if the issuing country meets specific emission reduction targets. This model aims to help tropical forest countries achieve their Paris Agreement Nationally Determined Contributions (NDCs) while stimulating rural economic growth and attracting institutional investment.

• Sustainable Land Bonds (SLBs) are sovereign debt instruments backed by the full faith and credit of the issuing country, designed to finance the transition to low-carbon land management and reduce net greenhouse gas emissions.
• The unique feature of SLBs is their link to Results-Based Payment (RBP) agreements with third parties, which can partially or fully offset interest payments if pre-agreed land-based emission reductions are achieved, potentially reducing borrowing costs to zero.
• Natural climate solutions, including improved land management, are estimated to provide 37% of the cost-effective CO2 mitigation required by 2030 to limit global warming to below 2°C, amounting to 11.3 gigatonnes CO2e per year.
• Tropical forest countries can increase agricultural output without further ecosystem conversion by utilizing abandoned land or increasing production intensity on existing land, both of which require significant capital investment.
• Existing results-based payment mechanisms for land-use emissions are supported by bilateral and multilateral programs, with the UK, Norway, and Germany pledging $5 billion between 2016 and 2018.

APA

Climate Bonds Initiative (2018). Sustainable Land Bonds. https://www.climatebonds.net/files/documents/publications/Sustainable_Land_Bonds_Report_2018.pdf

Chicago

Climate Bonds Initiative. Sustainable Land Bonds. 2018. https://www.climatebonds.net/files/documents/publications/Sustainable_Land_Bonds_Report_2018.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Sustainable Land Bonds |date=March 2018 |url=https://www.climatebonds.net/files/documents/publications/Sustainable_Land_Bonds_Report_2018.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2018sustainable, author = {{Climate Bonds Initiative}}, title = {{Sustainable Land Bonds}}, institution = {Climate Bonds Initiative}, year = {2018}, month = mar, url = {https://www.climatebonds.net/files/documents/publications/Sustainable_Land_Bonds_Report_2018.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }