Coastal communities in the US and around the world are grappling with the effects of climate change and natural hazards, such as more frequent and damaging storms, erosion, and sea level rise. Many communities have begun planning to reduce these threats. Those plans increasingly include restoration of natural infrastructure — wetlands, forests, beaches, dunes, etc. – due to their flood risk reduction, water quality protection, and wind and wave dampening capabilities.
Demand for public funds to reduce flood risks already far outstrips availability, and existing funds need to be used as efficiently as possible. Tools that use available financing more efficiently and attract new payors to restore natural capital are needed to help improve coastal resilience in the US and around the world.
An Environmental Impact Bond can help coastal communities dealing with land loss, sea level rise and urban flooding finance restoration of natural infrastructure and ecosystem services, providing storm surge protection and other benefits sooner.