REDUCING -' TOO DAMN HOT '- RECOURSE : PRECIS

 

The real obstacle to cities responding effectively to soaring temperatures is money. [ '' Too darn hot'',  July 22nd.]. 

It is often thought that cities are well resourced, but the reality is different. Only 11% of international funds for climate change go to cities. This is where city-resilience bonds could make a large difference.

Through these bonds a city government or agency could raise money from capital debt markets for investment in building resilience.

This instrument has been used to deal with a range of problems that cities face.

For instance, American Federal Reserve pledged to buy up to $500 billion in municipal bonds from small and medium-sized cities to finance their fight against Covid-19.

IN MANY DEVELOPING COUNTRIES with huge urban populations and extensive exposure to climate change, Like Bangladesh and India, there are no major administrative or legal barriers preventing cities from issuing bonds.

In a recent survey of major cities in India, 60% were found to be creditworthy. City bonds would help cities tackle climate change.

The World Students Society thanks author "

DR ADITYA BAHADUR

Principal Researcher

International Institute for Environment and Development,

LONDON.