MMA Invests in World Bank Green Bonds
As a reflection of environmental stewardship, MMA strives to care for God’s creation through investment activities. The MMA Praxis Intermediate Income Fund has shown this commitment by making a $2 million purchase in World Bank Green Bonds. Green Bonds were recently launched by the World Bank to connect capital markets to climate change-related initiatives. The World Bank is a global development cooperative owned by 186 member countries whose goal is to help overcome poverty and improve standards of living for people worldwide.
While climate change affects everyone, people in developing countries are most vulnerable. Higher temperatures, changes in precipitation and more extreme weather are among the effects of climate change and pose major risks to poverty reduction and other United Nations Millennium Development Goals. Proceeds from World Bank Green Bonds will be used to provide global solutions to climate change and are also meant to provide economic opportunities and higher standards of living for those in project areas.
Green Bonds support projects selected by World Bank environment specialists that meet specific criteria for development activities that help lower global carbon emissions. The World Bank conducts a due diligence process that identifies and monitors “green” development projects.
Examples of climate change mitigation and adaptation supported by the bonds include:
• rehabilitation of power plants and transmission facilities
• off-grid solar and wind installations
• funding for clean coal and methane capture technologies
• greater efficiency in transportation
• waste management
• energy efficient housing construction
• carbon reduction through reforestation and deforestation prevention
• protection against floods through reforestation
• food security improvement and stress-resilient crops
