1. Coastal Zone Resiliency Finance (CZRF) Project Update for Louisiana Water Synergy Project May 18, 2016

2. WSP: Collaborating to achieve action and scale – lessons and leverage Projects/ Investments Convene/ Collaborate Shared understanding of issues Shared development of solutions This is where it starts but once you get going, more progress on projects leads to even more people who want to join and more strength in collaboration

3. The Coastal Zone Resiliency FinanceProject The CZRF Project was established to deal with challenges identified by the Louisiana WSP around: enhancing financing mechanisms … for investments in natural or hybrid infrastructure … that can scale-up coastal restoration efforts.

4. Finance and Natural Infrastructure/ Resiliency: Emerging models & lessons Funding sources Project managers/ developers Projects/ Investments Project outcomes/ benefits Tapping true private sector (e.g. Corporate beyond philanthropic; Financial sector Those with biggest gap between sustainable value and available finance –especially natural infrastructure and coastal zone resiliency Lots of “returns” (benefits) – but which are (a) monetized and (b) returned to funding source?

5. CZRF Program Matrix—Why invest Multiple Env, Econ, Social Benefits Natural infrastructureROI Regulatory Offsets/CreditsCSR Credits P3 or P4 to finance major coastal or port project—Financial and/or Business Investors XXX Collaborative business investment to reduce risks--Task Force XX?? REF Landscape Restoration, verified economic, social, env benefits using Earth EcoMetrics tm model XXX ?X Water Quality Trading XX X? Cost Share Planned Restoration Project—CPRA, LPBF XX?

6. CZRF Program Matrix—Investment Mechanism Direct Corporate funds Bonds/capital investments Public tax/ Special district Broker/ Developer REF Revolving Fund P3 or P4 to finance major coastal or port project—Financial and/or Business Investors XX Collaborative business investment to reduce risks--Task Force XXX REF Landscape Restoration, verified economic, social, and environmental benefits X X Water Quality Trading X Cost Share Planned Restoration Project—CPRA, LPBF XX XX

7. Scoring Matrix: Identifying the “co- benefits” Infrastructure Protection Community Storm Protection Wetland Restoration Biodiversity Carbon sequestration Soil & Sediment Balance Water Flow and Supply Avoided Property Loss Business Continuity Economic Resiliency/Recreation/Tourism Biodiversity Local Fisheries Aesthetics Cultural Living Shoreline Potential

8. Scoring Matrix Example Infrastructure Protection Community Storm Protection Wetland RestorationBiodiversity Carbon sequestration CWPPRA Phase II Projects BA-0027C Barataria Basin Landbridge Shoreline Protection, Phase 3-CU7 & 8 x x BA-0048 Bayou Dupont Marsh and Ridge Creation Project xxxxx BA-0043 2(EB) Mississippi River Long Distance Sediment Pipeline xxxx BA-0075-1 Jean Lafitte Tidal Protection xx

9. Team’s current thinking: The “Gap” There are important investments for coastal zone resiliency (especially though not limited to green infrastructure) for which funding will be too little, too late or both under existing mechanisms. This includes restoration projects that are ranked too low to receive CPRA funding but are important to protect business and public assets. There is a need for a business led, public-private partnership to help fill that finance gap, including: Finding ways to identify, quantify, monetize and “harvest” co-benefits; and Leveraging public funds by adding private funding for co-located work to achieve additional benefits/co-benefits.

10. Team’s current thinking: Options to fill the Gap Create new mechanism/model to identify critical restoration needs and attract mainstream private sector capital that's not really engaged now. Create new mechanism/model to better direct, coordinate, and leverage existing public money with private funding, especially given unique opportunity in post-BP, post-Katrina Louisiana Hybrid of the two

11. Team’s current thinking: Balancing several imperatives Focus: Ensuring a focus on Louisiana priorities and needs (the “Louisiana lens”) vs. Ensuring that our methodology is replicable and can be applied to CZRF challenges in other locations Speed: Thinking it through rigorously vs. Moving ahead to create real progress and results

12. Questions for WSP: 1.Are you aware of specific projects that aren’t getting funding (or not enough or not soon enough) which might be test cases/laboratories for us? 2.What regions should we focus on in this pilot 3.Are you aware of existing financing mechanisms we may have missed that are filling those gaps? 4.Are you aware of Financial sector contacts (especially “mainstream”) who might be willing to participate?