Losses experienced by the Indonesian government due to floods are predicted. It is because of the significance of population growth, closure of water catchment areas, and climate change in many regions in Indonesia. The government has tried to reduce the risk but faces insufficient funds. Therefore, new innovative funding sources are essential to overcome these limitations. One way to obtain it is through issuing Flood Catastrophe Bonds (FCB). Unfortunately, Indonesia has had no FCB price estimate until now. On the basis of this problem, this study aims to estimate the FCB price in Indonesia. The primary method used is the approximation method of the aggregate loss distribution. This method can compute the aggregate flood loss cumulative distribution function value faster. The FCB fair price estimation results are cheap because the risk of the instrument is significant. This significant risk is also proportional to the large return. Finally, further analysis shows that in Indonesia, the attachment point of the FCB has a relationship that is in line with the price, while the term of FCB does not. This research is expected to assist the Indonesian government in determining the fair price of FCB in Indonesia. This research can assist the investors in choosing FCB based on expected return, attachment point, and the term they want.

During the past four decades, there have been tremendous changes on earth due to climate change. Humankind has increasingly used fossil fuels such as coal, oil, etc. and increased the green gas effect on this planet. Nowadays, most scientists believe there must be some actions to prevent global warming to rescue the next generation from the irreversible consequences of climate change. This paper studies the recent studies on the effects of global warming in Canada. The study reviews the recent efforts on the effects of global warming on forests, lakes, etc.