Subsidy Phase-out and Reform Catalyst Bonds by pogden

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Jeff Harti

May 5, 2015
09:21

Fellow

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Hi Pete, Thank you for submitting your proposal. To help the contest team to review and evaluate your proposal, could you please also complete the following sections: - What actions do you propose? - How much will emissions be reduced or sequestered vs. business as usual levels? It looks like this information is already contained in the other sections of your proposal. Regards, Jeff Harti

Dustin Carey

Jun 4, 2015
12:45

Fellow

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Hi Pete, I think this is an exceptionally innovative proposal. While extremely difficult to quantify the potential reductions in GHGs, the calls for curbing fossil fuel subsidies by the World Bank and IMF certainly make this a pertinent idea. The questions that immediately come to mind for me are a) how would it be verified whether loans were repaid by reductions in subsidies? Would the host institution of the bonds be responsible for verification of this? B) would a clause be built in stipulating that in the event fossil fuel subsidies are completely removed, the loan may be repaid from general revenue? In fact, as a funding mechanism if partnered with the Green Climate Fund, the eradication of subsidies could lead to a reduced loan repayment. Best regards, Dustin Carey