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Green-Win Newsletter - May 2018

16 May 2018
Newsletter #6: News from the Green-win project
In February-March-April Green-Win project hosted its final conference in Barcelona, organised bioenergy workshop in Bali and published seven Policy Briefs. This and more you will find in the newsletter #6. Enjoy your reading.
Stay up-to date with our progresses: come and visit our website  here and   our twitter account!
With warmest regards,
Upcoming Events
Positive Tipping Points in a Rapidly Warming World
March 2018 | Publisher(s): Autonomous University of Barcelona | Author(s): J David Tabara, Niki Frantzeskaki, Katharina Holscher
Tipping points fundamentally and irreversibly change the structure and intrinsic functioning of a given system of reference. Most research in sustainability science and integrated assessment has focused on examining the catastrophic, abrupt nature of tipping points in biophysical systems or the implications of the realization of such crises or of crossing such negative thresholds for policy and action.
Technology Diffusion and Climate Policy: A network approach and its application to wind energy
March 2018 | Publisher(s): Paris School of Economics | Author(s): Solmaria Halleck Vega, Antoine Mandel

The role of technology transfer in the mitigation of climate change has been strongly emphasized in the recent policy debate. This paper, ​ Technology Diffusion and Climate Policy: A network approach and its application to wind energy , offers a network-based perspective on the issue. First, the authors propose a methodology to infer from technology adoption data the network of diffusion and apply it to a detailed dataset on wind energy technologies installed globally since the 1980s. The authors then perform a statistical analysis of the network. It highlights a relatively inefficient organization, characterized in particular by the weakness of South-South links, which leads to relatively long lags in the diffusion process. Against this background, the authors characterize optimal transfer/seeding strategies for an agent that aims to introduce a new technology in a developing country in view of further diffusion. Our results suggest in particular that CDM projects have been too concentrated in large emerging economies and that developed countries should put a stronger weight on the positive externalities in terms of technology transfer of cooperating with less prominent developing countries.
The Changing Value of the ‘Green’ Label on the US Municipal Bond Market
January 2018 | Publisher(s): Nature Climate Change | Author(s): Antoine Mandel, Andreas Karpf
Green bonds are seen as a key instrument to unlock climate finance. While their volume has grown steadily in recent years, the impact of the ‘green’ label on the bond market is poorly understood. The paper  The Changing Value of the ‘Green’ Label on the US Municipal Bond Market investigates the differences between the yield term structures of green and conventional bonds in the US municipal bond market. We show that, although returns on conventional bonds are on average higher than for green bonds, the differences can largely be explained by the fundamental properties of the bonds. Historically, green bonds have been penalized on the municipal market, being traded at lower prices and higher yields than expected by their credit profiles. In recent years, however, the credit quality of municipal green bonds has increased and the premium turned positive. Green bonds are thus becoming an increasingly attractive investment, with scope to bridge the climate finance gap for mitigation and adaptation.
Mobilising Private Finance for Coastal Adaptation: a Literature Review
March 2018 | Publisher(s): Global Climate Forum | Author(s): Alexander Bisaro, Jochen Hinkel
The role of private finance in meeting adaptation infrastructure investment needs has been widely emphasised in climate policy debates. This new paper  Mobilising private finance for coastal adaptation: a literature review  in  WIREs Climate Change  reviews the scientific literature on the issue. The paper thus provides a perspective from the current literature on the questions of what promotes private investment in coastal adaptation and how can public actors’ interest in adaptation be aligned with private investor interests. In particular, the paper reviews the literatures on coastal adaptation finance and on financial arrangements involving both public actors and private investors, finding that private provisioning, public–private Partnerships (PPP), and public debt arrangements are promising. The authors then survey empirical examples, finding that private provisioning attracts investment when returns are high, for example, in urban real estate, and that PPPs attract dredging and construction companies’ investment, particularly for adaptation measures with a large share of operational costs, for example, beach nourishment. The authors somewhat surprisingly find little evidence of institutional investment through public debt instruments. They suggest a number of policy instruments, for example, concessional loans, tax incentives, and standards, to address this gap and enhance private coastal adaptation investment. The paper’s results are also relevant for other sectors that involve long-term infrastructure adaptation measures.

Policy Briefs