Investors expect to lose up to $150m on Jamaica’s World Bank-arranged catastrophe bond as Hurricane Melissa strengthened to a Category 5 storm, likely triggering a full payout. The anticipated loss would mark one of the largest tests yet for the fast-growing catastrophe bond market, which offers high yields in exchange for climate risk. The Financial Times reports on the news.
Meanwhile, the EU has warned that the UK’s planning and infrastructure bill could violate post-Brexit “level playing field” rules and threaten the UK-EU free trade agreement because it reduces nature protections. Officials said the bill risks access to EU energy markets and could undermine the UK’s efforts to rebuild cooperation with the EU on trade and environmental standards. The Guardian covers the story.
