Part V
Climate Linkage &
KPI Framework
Indicative design menu, to be tested and validated in Stage 1.
Baseline
PNG's Natural Capital
| Dimension | PNG Context |
|---|---|
| Tropical Forest | ~33M hectares · 5.5Bn tonnes carbon · ~1.2–1.5% annual deforestation in pressure zones |
| Marine Territory | >3M km² EEZ · 17,000+ km coastline · 3rd largest coral reef globally |
| NDC Targets | 100% renewable electricity 2030 · 50% deforestation reduction · carbon neutrality 2050 |
| 30×30 Commitment | Pacific Oceans Commissioner · High Ambition Coalition signatory |
| Community Governance | 97% customary land tenure · constitutional customary rights framework |
KPI Design Menu
Three Categories of Climate Performance
Each KPI will be tested for measurability, sovereign controllability, investor credibility, implementation burden, baseline quality, and consistency with existing Government commitments.
Coupon Mechanics
Step-Down / Step-Up Mechanism
Direct financial incentives for KPI performance, calibrated during Stage 1.
| Scenario | Coupon Adjustment | Financial Impact |
|---|---|---|
| Full KPI achievement (all 3 categories) | Base – 100 bps | ~USD 5M additional annual saving |
| Partial achievement (2 of 3) | Base – 50 bps | ~USD 2.5M additional annual saving |
| Minimum achievement (1 of 3) | Base coupon unchanged | No financial consequence |
| KPI failure or reversal | Base + 50 bps step-up | ~USD 2.5M annual cost |
| Force majeure / natural disaster | KPI suspension; 12-month grace | Protects sovereign in emergency |