• The Systematic Observation Impact Bond (SOIB) is an innovative climate finance mechanism designed to close critical weather and climate data gaps in the world's most vulnerable nations.
• Pioneered by the UN's Systematic Observations Financing Facility (SOFF), the bond uses a "pay-for-success" model where investor returns are contingent on achieving measurable outcomes in data sharing. 

• The SOIB aims to increase the generation and international sharing of weather and climate data from LDCs and SIDS, which currently lack sufficient observations.
• This improved data is vital for accurate weather forecasts and early warning systems, which are crucial for protecting lives and livelihoods from extreme weather.
• Closing this data gap is expected to yield significant economic benefits, estimated at $5 billion annually in direct benefits and up to $160 billion in broader economic gains across various sectors.
• The bond provides an innovative funding method for a global public good by combining capital from public, private, and philanthropic sources and shifting the risk of project failure from governments to investors. 

• Structured as an impact bond, repayment to investors depends on achieving pre-defined measurable results verified independently.
• The bond supports frontline climate resilience in vulnerable countries, helping in better preparation for extreme weather and climate hazards.
• Expected improvements include up to 30% reductions in forecast errors in Africa and 20% in the Pacific region.
• The bond aligns with international climate action goals and is showcased as part of the COP30 Action Agenda.

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