GLRPPR Sector Resource: Creating Clean Water Cash Flows
Creating Clean Water Cash Flows
NatLab's Creating Clean Water Cash Flows report details strategies that Philadelphia and a wide range of cities can use to draw private capital into their greening efforts, by driving down upfront costs, improving payback periods for retrofits. The report offers detailed analysis of the roles that project aggregation, offsite mitigation and credit trading programs, stormwater fee discounts and subsidies, and private-public partnerships can play in stimulating much-needed private investment in green infrastructure.
NatLab also found that, for third-party investors to finance long-term projects, questions around regulatory and revenue certainty must be resolved. With some assurance of future stormwater fees and projected cost savings that could accrue to property owners, the market for green infrastructure finance could follow "project developer" models similar to those found in the energy efficiency finance sector, where upfront project costs are re-paid through future cost savings. Creation of a loan loss reserve fund -- to help insulate investors from revenue-related risk -- can also help draw investors into a new and unproven sector. Lastly, a full chapter of Clean Water Cash Flows explores public-private partnership structures as a promising strategy to help cities generate large amounts of greened acres, on a wide range of both public and private land types, at the lowest cost.
Natural Resources Defense Council (NRDC)
Date of Publication:
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