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Floodplains, by threatening to withdraw flood insurance from locations at greatest risk (Association of British Insurers, 2002). With expectations for rising levels of flood risk in developed countries, political pressures demand that if private insurance is withdrawn, state-backed alternatives should be created leading to increased liabilities for governments. Without such a backstop more significant adaptive measures may be triggered. In the northern Bahaman islands of Abaco and Grand Bahama (hit by three major hurricanes and their associated storm surges between 1999 and 2004), in 2005 flood insurance was withdrawn for some residential developments, ending the ability to raise a bank-loan mortgage. Without a state-backed alternative, houses became abandoned as their value collapsed (Woon and Rose, 2004). Meanwhile, builders have begun to construct new houses in the Bahamian coastal floodplain on concrete stilts, bringing some properties back into the domain of insurability. Similar...
The form of financing energy efficiency depends on evaluating a variety of factors, such as available cash, risk, time to arrange and organize the project, long-term profitability, leasing instead of buying and government guarantees. There are about six major forms of making energy efficiency investments (a) direct investment (b) local bank loans (c) obligations and revenue bonds (d) performance contracting equipment and service contracts (e) through third party financing ESCOs and (f) in-country funds based on loans or grants from multilateral or bilateral agencies.19
Impacts from drought are commonly classified as direct or indirect. Reduced crop, rangeland, and forest productivity increased fire hazard reduced water levels increased livestock and wildlife mortality rates and damage to wildlife and fish habitat are a few examples of direct impacts. The consequences of these impacts illustrate indirect impacts. For example, a reduction in crop, rangeland, and forest productivity may result in reduced income for farmers and agribusiness, increased prices for food and timber, unemployment, reduced government tax revenues because of decreased expenditures, increased crime, foreclosures on bank loans to farmers and businesses, migration, and disaster relief programs. Direct or primary impacts are usually of a biophysical nature. Conceptually speaking, the more removed the impact from the cause, the more complex the link to the cause.
Some companies will have difficulty raising funds internally for capital investment, especially companies in developing countries. External funds are available to implement pollution prevention projects. Private sector financing includes bank loans and other conventional sources of financing. Financial institutions and international organizations (e.g., Asian Development Bank) are becoming more cognizant of the sound business aspects of pollution prevention and cleaner production 15 . Government financing should be available in some cases to help small- and medium-sized plants.
The Bank offers two basic types of loans investment loans and development policy loans. The former are made for the support of economic and social development projects, whereas the latter provide quick disbursing finance to support countries' policy and institutional reforms. Although the IBRD provides loans with a low interest rate (between 0.5 and 1 percent for a standard Bank loan), the IDA's loans are interest free. The project proposals of borrowers are evaluated for their economical, financial, social, and environmental aspects to ensure that they are viable before any amount of money is distributed.