Adaptation Finance for Emerging Markets
HKUST IEMS Thought Leadership Brief No. 96
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Climate adaptation funding in emerging markets faces a significant gap of $215-387 billion annually, yet investors show willingness to accept lower yields for adaptation bonds compared to other green projects in these markets. Notably, emerging market adaptation bonds command an even larger "Greenium" (green premium) than those from developed markets with similar physical risk exposure. Strong institutions are critical to attracting international green capital flows.
About the author
Keith Jin Deng Chan is an Assistant Professor in the Division of Environment and Sustainability at The Hong Kong University of Science andTechnology (HKUST). He specializes in applying economic and game theory to study the optimal design of governance mechanisms. He holds a PhD in Economics from the University of Cambridge.
Vivi Yuwei Liao is a PhD student in the Division of Environment and Sustainability at The Hong Kong University of Science and Technology(HKUST). She has cultivated her research interest in green finance. She holds an MPhil degree and an MSc degree from HKUST.
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