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Meramec Funding Sources

Green Bonds, Green-Muni Bonds, Climate Bonds or Environmental Bonds
Barbara Charry

Green Bonds, Green-Muni Bonds, Climate Bonds or Environmental Bonds

Aug. 1, 2019
By WSU EFC

Story summary:

  • Green Bonds provide local governments the ability to borrow money to fund environmental, sustainable infrastructure projects, typically for a low-cost, tax-exempt rate of interest.

Quick Facts

Benefits of Green Bonds
Not limited in size of project

Not limited in scope of project

Tax-exempt

Low interest rate

Drawbacks of Green Bonds
Repayment required

May require increase of fees or rates to cover cost of repayment and interest

Voter approval required

May have higher interest rate than a municipal bond

About

Green Bonds, also known as Green-Muni, Climate Bonds or Environmental Bonds, have been growing in popularity since 2013.

Today, many investors are sustainability conscious, which means they are interested in more than a financial return on their investment. They want their investments to improve the environment and quality of life.

The green bond market can help communities access funding for projects like biodiversity conservation, energy efficiency, sustainable land use, sustainable materials management, sustainable water management, and much more.

Consult your municipal attorney prior to moving forward with bond opportunities.

 Project Examples

 

Consult your community’s attorney and financial advisors prior to moving forward with any of these funding options. Any reference in this website to any person, or organization, or activities, products, or services related to such person or organization, or any linkages from this website to the website of another party, do not constitute or imply the endorsement, recommendation, or favoring of companies or organizations.
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