Environmental Impact Bonds
Quantified Ventures pioneered the Environmental Impact Bond in 2016 with DC Water to fund a $25MM green stormwater infrastructure project. Through subsequent issuances, we have worked with municipalities to refine the model and drive additional value to cities.
What is an Environmental Impact Bond?
An Environmental Impact Bond (EIB) is a type of municipal bond label which signals to investors that the issuer has market-leading ESG transparency and accountability in their bond.
The EIB commits to the prediction, evaluation, and disclosure of environmental outcomes of funded projects. It is compatible with ICMA Green Bond Principles and UN Sustainable Development Goals.
Why Issue an Environmental Impact Bond?
Issuers, citizens, and ratepayers benefit from EIBs because they:
Expand a bond’s potential investor base to include leading ESG funds and ESG-influenced accounts
Demonstrate commitment to innovation and transparency to peers and the community
Fund nature-based solutions, which drive additional environmental, health, and workforce development benefits
Enable smarter capital spending decisions using project outcomes data
Investors and asset managers benefit from EIBs because they:
Streamline impact reporting
Provide clear and consistent standards for outcome measurement and reporting
Commit to post-issuance impact reporting, not just pre-issuance proceeds reporting
Why Quantified Ventures?
We bring:
Robust and efficient frameworks for outcome measurement and reporting
Proven ability to efficiently collaborate with financial, legal, and engineering teams to deliver EIB documentation
Experience in innovative financing for public and private ESG projects
How Do I Learn More?
We welcome the opportunity to enhance your city’s issuance through our Environmental Impact Bond Deal Kit or to simply discuss your financing options. Contact Jason Lee at lee@quantifiedventures.com.
Environmental Impact Bond Examples
Damon Burns of Finance New Orleans talks about our work on a Community Impact Bond to provide capital for the local Green Bank enterprise to support urban infrastructure investments with positive environmental, social, and health outcomes. This builds on the Environmental Impact Bond model. (Video starts at 14:19)
Environmental Impact Bond Testimonials and Awards
“Our Rain Check 2.0 program will make Buffalo a greener, healthier, and more equitable city. Green infrastructure provides benefits beyond its ability to manage stormwater, from community beautification and public green space, to workforce development, to public health. This Environmental Impact Bond illustrates our commitment to being data-driven, equitable, forward-thinking, and transparent in how we address stormwater and community resilience.”
“Environmental Impact Bonds draw significant interest from ESG-oriented investors. One muni ESG portfolio manager described the Hampton EIB as ‘the gold standard for muni green bond issuance’ and expressed hope that other issuers would move in the same direction.”
“The more we learned about EIBs, the more of a ‘no-brainer’ they became.”
“I’m an Environmental Impact Bond fan! The outcomes measurement and reporting produced a more attractive product for investors and really disciplined DC Water. EIBs open up better conversations with ratepayers, taxpayers, and customers.”
“Quantified Ventures provided important guidance and resources to our team as we developed an Environmental Impact Bond that demonstrates our commitment to seek out innovation in financing as well as innovation in implementing projects that will make our city more livable and more beautiful, while reducing flooding and pollution.”
