The World Bank on Monday priced a $25 million bond linked to United Nations-approved carbon emission offset credits, the market's first such bond, lead manager Daiwa Securities SMBC Europe said.
Payments on the bond are linked to Certified Emissions Reduction credits (CERs), which are issued under the Clean Development Mechanism, a trading scheme that allows rich nations to invest in clean energy projects in developing countries.
Trade in CERs, which holders can either sell for profit or use to meet emissions targets under the Kyoto Protocol, more than doubled to $13 billion last year, according to a World Bank report published in May.
More:United Nations Climate Change Carbon Offset Credits World Bank Carbon Bond Climate Change United Nations
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