The World Bank has issued a $225 million bond, with financial returns linked to carbon removal units (CRUs) generated from reforestation projects in Brazil’s Amazon rainforest. This bond is the first to tie financial returns to the removal of carbon from the atmosphere, rather than avoided emissions. The bond, which is 100% principal-protected, includes a fixed guaranteed component and a variable component tied to CRUs generated by the Brazil-based company Mombak. Proceeds will support the World Bank’s sustainable development activities globally.

Source: ESG Today