Topic: Fresh Water

Swiss finance giant Credit Suisse has partnered with The World Bank to issue a $28.6m bond aimed at financing the protection and restoration of fresh and saltwater resources and habitats.

"Through this 4th EIB Challenge, we will select 2 cities along the Mississippi River to issue the next Environmental Impact Bonds (EIBs). If you are a representative of a city agency, utility, water authority, or sewer authority, we want to work with you, and encourage you to read through our materials and consider submitting a proposal."

In February 2019, the EPA’s assistant administrator for water issued a memo updating the agency’s water quality trading policy “to promote market-based mechanisms.” The memo includes six principles intended to clarify aspects of the federal water quality trading program, provide tools and incentives to states and local governments to implement trading programs, and promote increased investment in conservation.

The Gulf of Mexico on the Pensacola, Florida coast / Capt_tain Tom / CC BY 2.0

Environmental credit trading programs have gained traction for pollutants like carbon emissions, at least in concept. Is water quality trading the next frontier? The mechanism offers the possibility of more flexible and cost-effective water quality control, but in contrast to some environmental credits, markets have struggled to gain momentum.

WRI’s Green-Gray Assessment method allows stakeholders to value the costs and benefits of integrating green or natural infrastructure into water supply systems to improve performance.

Delaware farm — Farm in Georgetown, Delaware / Michele Dorsey Walfred / CC BY-SA 2.0

The traditional water fund model, which has been used around the world, pools philanthropic and donor capital to support upstream restorations. The Revolving Water Fund innovates on this model by also aiming to quantify the pollution reductions from these restoration activities, then packaging and selling the reductions to municipalities in the watershed seeking to cost-effectively comply with water quality standards enforced under the Clean Water Act.

While the states in the bay watershed have collectively appropriated more than $300 million in each of the last two fiscal years to conserve important lands, and have received some complementary federal funding, these levels will be inadequate to conserve another 3.1 million acres of land by 2030 to achieve the 30% goal.

The Church of Sweden, which can trace its origins back to the year 829, began incorporating sustainability factors into its asset management business about a decade ago. Now it is expanding its efforts by collaborating on bonds that go toward financing sustainable cities and clean water.

The Electric Power Research Institute (EPRI) and First Climate announced today an agreement that will move credits from EPRI’s Ohio River Basin Water Quality Trading Project to international credit trading markets. This is a unique collaborative between a water quality project and an environmental asset credit broker to provide access to some of the world’s largest environmental credit buyers.

The Environmental Protection Agency is offering $14 million to fund projects that help reduce harmful runoff into Great Lakes waterways through the Great Lakes Restoration Initiative. That includes green infrastructure, farmer-led outreach and education, manure management on farms, and a market-based approach called “water quality trading.”

Conservation Finance Network

Topic: Fresh Water

'Blue Finance': World Bank and Credit Suisse Partner for Sustainable Water Bond

The Mississippi River Environmental Impact Bond Challenge

EPA Updates Water Quality Trading Policy

Building Demand in US Water Quality Trading Markets

Green-Gray Assessment: How to Assess the Costs and Benefits of Green Infrastructure for Water Supply Systems

Revolving Water Fund Pilots PFS Approach for Water Quality Improvements

Wall Street Needs to Put More Stock in Future of Chesapeake Bay

Green Voices of Nasdaq Nordic: How the Church of Sweden Integrates Sustainability into Its Investments

EPRI and First Climate Bring Water Quality Credits to Environmental Stewardship Markets

EPA Encourages Market-Based Approach To Reduce Runoff To Great Lakes