Nature Based Solutions - Implementation Models Database

Urban public parks, single trees

Paris Climate Bond

A short description of the NSB

In the last years, in response to the expected increase in average daily temperatures as well as in the number of hot days and of heatwaves due to climate change, Paris Heatwave Plan is drawn up and measures to prevent heat stress (i.e. green gardens, parks and roofs and use of water for cooling) are implemented. Furthermore, floods are not expected to be more or less frequent due to climate change. So the purpose of the Adaptation Strategy, one of the operational documents of the Paris Climate & Energy Action Plan, is to prepare the city for both future climate changes as well as for future scarcity of certain resources such as water, energy, food and biodiversity. This is translated into four main objectives: to protect Parisians from extreme climate events; to ensure the supply of water, food and energy; to live with climate change with a more sustainable city planning; to foster new lifestyles and boost solidarity. In this sense, Paris Climate Bond aim (issued in November 2015) is to raise finance for climate change mitigation or adaptation-related projects or programmes. It is a form of loan: the holder of the bond is the lender (creditor), the issuer of the bond is the borrower (debtor), in this case the City of Paris. Bonds provide the borrower with external funds to finance long term investments. Twenty per cent of the bond funds have been assigned to adaptation projects. Currently, 2 projects with a climate adaptation objective are being implemented. They involve planting 20,000 trees in the city and creating 30 hectares of new parks by 2020. The new trees will be planted in the inner city of Paris, in the streets and at public facilities (i.e. school playgrounds, gymnasiums, etc.). Since the beginning of 2016 until the summer of the same year, around 2,000 trees have already been planted. The new parks will be created both in the urban renewal zones of Paris as well as in some already existing neighbourhoods of Paris where local places can be transformed into little local parks for residents. In line with Adaptation Strategy, objective of both adaptation projects is to reduce the urban heat island effect and increase thermal comfort within the city.

NBS Implementation context
Location Paris (France)
Status (from - to) Ongoing (2015-2031)
NBS Scale Neighbourhood City
NBS Impacts scale Neighbourhood City Regional
Urban density/ Soil consumption High (dense city center)
NBS Typology

NBS Uban Challenges
Climate Issues Climate mitigation
Climate adaptation
Other 0
Urban water management and quality Urban water management and quality
Flood management
Other 0
Air Quality Air quality at district/city scale
Air quality locally
Other 0
Urban Space and Biodiversity Biodiversity
Urban space design
Urban space management
Other 0
Urban Regeneration and Soil Air quality at district/city scale
Other 0
Resource efficiency Food, energy and water
Raw materials
Other 0
Public health and well-being Acustic
Quality of life
Other 0
Environmental justice and social cohesion Environmental Justice: Recognition
Environmental Justice: Procedural Justice
Environmental Justice: Distributional Justice
Environmental Justice: Capabilities
Environmental Justice: Responsibility
Social Cohesion
Other 0
Urban planning and governance Urban planning and form
Governance in planning
Other 0
People Security Control of crimes
Control of extraordinary events
Other 0
Green economy Circular economy
Bioeconomy activities
Direct economic value of NBS
Other 0
NBS Stakeholders & Governance

Paris Climate Bond has been initiated by the City of Paris and created both by the Finance and Procurement Department (DFA) and the Parks and Environment Department of Paris. In a competitive tendering, the City of Paris select two banks to accompany it in the process as partners and benefit from their expertise in investor expectations and from their network and marketing services. The bond is mainly supported by domestic investors (83%) but the City of Paris manages to diversify its investors on the basis of international institutional accounts (i.e. Benelux, Switzerland and Nordics). The selection of projects to include in the bond is managed by the Finance Management Support Service (SGF) of the city in full collaboration with the Urban Ecology Agency of Paris (AEU) and overseen by a non-financial rating agency (Vigeo). Within the city administration, teams are formed to execute projects under the bond. Transparency is ensured by annual reporting where the issuer has to justify the allocation of money to projects complying with the set criteria. The process and report is reviewed by the non-financial rating agency Vigeo, thereby providing investors reassurance on the use of their funds.

Initial actors (Leaders) Governments Municipality (the city of Paris)
Involved actors Governments Municipality (the city of Paris),Market Private sector (insurers, pension funds and asset managers)
Ecological scale City scale green networks
Governance model CLUSTER 2: New Public Management Public_private partnership (PPP)
NBS Financial aspects

The total size of Paris Climate Bond is €300 million, with €60 million dedicated to adapt to climate change. Climate bond promises an annual interest rate of 1.75% and can be renewed every year. In particular, the total cost of 20,000 trees will be about €18 million, partly financed by the proceeds of climate bond (€15 million) and the remaining €3 million are directly financed by greening budget of the City of Paris (Green spaces and Environment Department). The new parks will cost €67 million, of which €45 million will be financed by the climate bond and the rest again directly from the city’s greening budget. This greening budget is set independently from the adaptation strategy. Maintenance of the parks and trees will be managed and paid by the City as well, and not by the climate bond investments.

Global (estimated) cost of the project more than 5M€
Financing mechanism CLUSTER 2: Financial institutions Municipal Green Bonds
NBS Business Models Archetype
Technological Non applicable
Social Non applicable
Organisational Re-purpose the business for society/environment
NBS Success and limiting factors
Process enablers
Knowledge Generation of evidence Lesson learnt through implemented projects Research on benefits Awareness, Climate Change
Governance Process efficiencies Coordination role, Co-creation and participation Involvement of urban government
Economy Government support Public-private partnerships, Create conditions for new business models and finance schemes
Process inibitors
Knowledge -
Governance Disconnection between short-term actions and long term goals Short-term action and decision-making cycles, Institutional barriers Bureaucracy and unsupportive legal frameworks
Economy -
IM Keywords
  • Public–private partnership (PPP)

  • City scale green networks

  • Municipal Green Bonds

  • Re-purpose the business for society/environment