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A Framework to Enhance Financing Capacity and Incentivise Preservation of Natural Assets

Alexander Ryota Keeley (Urban Institute), Alin Halimatussadiah (The Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia), Bambang Brodjonegoro (University of Indonesia), Matthew Agarwala (Bennett Institute for Public Policy, University of Cambridge; Tobin Center for Economic Policy, Yale University), Muhammad Adriansyah (Institute for Economic and Social Research), Robert Smith (International Institute for Sustainable Development), Robi Kurniawan (SDGs Hub), Roes Ebara Gikami Lufti (Institute for Economic and Social Research Faculty of Economics and Business), Shunsuke Managi (Urban Institute), Shutaro Takeda (Urban Institute), Teuku Riefky (University of Indonesia (LPEM FEB UI))
This Policy Brief was first published in https://t20ind.org

Abstract

Despite global benefits, the burden of preserving natural capital often falls on low- and middle- income countries (LMICs). Mobilising greater flows of funds for these LMICs is critical, given the fiscal and financial market constraints they face. To add to their problems, the fiscal resources of developed countries have shrunk due to the fiscal pressures from COVID-19 and the slowing of growth. The developed countries, therefore, have been constrained in providing large-scale intergovernmental transfers to these LMICs. Alternative sources of low-cost funds are urgently required by these LMICs, but access to low- cost funds is limited due to their high credit risk. This Policy Brief suggests creating innovative financial tools that will leverage the preservation of natural capital for low-cost financing to LMICs while advocating a better integration of nature into the financial system through standardised accounting systems.

Authors

Alexander Ryota Keeley (Urban Institute), Alin Halimatussadiah (The Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia), Bambang Brodjonegoro (University of Indonesia), Matthew Agarwala (Bennett Institute for Public Policy, University of Cambridge; Tobin Center for Economic Policy, Yale University), Muhammad Adriansyah (Institute for Economic and Social Research), Robert Smith (International Institute for Sustainable Development), Robi Kurniawan (SDGs Hub), Roes Ebara Gikami Lufti (Institute for Economic and Social Research Faculty of Economics and Business), Shunsuke Managi (Urban Institute), Shutaro Takeda (Urban Institute), Teuku Riefky (University of Indonesia (LPEM FEB UI))

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