The City of Hampton, Virginia, recently joined a short list of U.S. communities spearheading green infrastructure investment through the use of Environmental Impact Bonds (EIBs).
First developed by D.C.-based social investment firm Quantified Ventures, EIBs are a financing tool that encourages investment in green infrastructure by linking financial returns to measurable performance outcomes. Public utilities issue the bonds alongside performance targets and timeframes, and independent parties assess project success through the achievement of said targets. EIBs can be used to fund pilot approaches to sustainable infrastructure or to scale up lab-tested environmental projects.
The EIB’s outcomes-based financing approach helps to stabilize green infrastructure investments, which can be risky due to the varying efficacies of individual green projects and thereby increases venture capital opportunities for communities interested in going green. For the City of Hampton, this EIB will equate to approximately $12 million in stormwater-related infrastructure projects with the end goal of reducing pollution and enhancing the city’s resilience to flooding events.
Hampton is bisected by Newmarket Creek, a tributary of the two-mile-long Back River that eventually feeds into the Chesapeake Bay. In recent years, severe weather events and rising sea levels have led to increased flooding of Newmarket Creek. Hampton’s planned green infrastructure projects would combine to expand the stormwater storage capacity of the Newmarket Creek watershed by an excess of 8.6 million gallons. With sea levels and the occurrence of severe weather predicted to continue rising, these projects will provide valuable security against future flooding events while also creating neighborhood assets for Hampton residents.
Project designs include a series of manmade wetlands and detention ponds that combine to form a “stormwater park,” extensive vegetation installations, and an increase in elevation for a major city road. You can learn more about the City of Hampton’s Environmental Impact Bond and green infrastructure projects here.
Photo Credit: Alpsdake, CC BY-SA 4.0
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