Nature Based Solutions - Implementation Models Database

Implementation model

Paris Climate Bond

A short description of the NBS project

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 1. 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 France, Paris (France)
Latitude
Longitude
Status Ongoing (2015-2031)
Dates
Description of the NBS
NBS Scale city
NBS Impacts scale • Neighbourhood • City • Regional
Urban density/ Soil consumption High (dense city center)
Combined with other(s) environmental friendly solution(s)?
if other
NBS Typology
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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
Waste
Recycling
Other 0
Public health and well-being Acustic
Quality of life
Health
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
Other
Stakeholder and Governance
Who Started this initiative? Governments • Municipality (the city of Paris)
Contracting Authority
Project manager (leader and main partners): entities names, and know-how involved
Who (else) was involved in the project ? (Inhabitants, local association, etc.)
More detail on the process and the role of the different stakeholders (How did it happen?)
OPTIONAL Considering the actual impacts, who are the primary beneficiaries of the project.
Cluster Governance Model Description
cluster2_new_public_managementPublic_private_partnership 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.
Financing
Global Estimated cost of the project more than 5M€
Cluster cluster2_financial_institution
FM • Municipal Green Bonds
Description of the financing mechanism 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.
Business Model
Class Type Description
The main objective of Paris Climate Bond is to attract private investors to improve the sustainability of the city of Paris. A climate bond is perceived as an interesting and profitable mechanism by the city to finance public projects. It consists of a wide variety of investor profiles and requires transparency.
Temporal Factor
Expected time for the NBS to be fully effective after its implementation
Expected life time of the intervention
Already feedbacks on the project? In case, the project has already been adapted to new requisites, please explain the modifications brought
Success and limiting factors
Process Enablers
Class Subclass Type Description
Knowledge_driversGeneration of evidence Awareness; • Lesson learnt through implemented projects • Research on benefits • Climate Change -
Governance_driversProcess efficiencies Co-creation and participation• Coordination role; • Involvement of urban government
Economy_driversGovernment support Create conditions for new business models and finance schemes • Public-private partnerships;
Process Inhibitors
Class Subclass Type Description
Knowledge_drivers-
Governance_driversDisconnection between short-term actions and long term goals Institutional barriers • Short-term action and decision-making cycles; • Bureaucracy and unsupportive legal frameworks
Economy_drivers-
What makes this project a pioneer?
Field
Criteria
Brief description of the innovativeness
Has the project received a prize, an award?
Has the project received a media coverage? (in reviews, in press, etc.)
IM Keywords
References