1. Introduction to Environmental Impact Bonds
February 2019

2. Urban and Coastal Resilience Agriculture Forestry and Land Use
Quantified Ventures Brings Impact Capital to Innovative Projects
Current focus areas:
Urban and Coastal Resilience
Agriculture
Forestry and Land Use

3. 3
We Design Catalytic Health and Environmental Investments
Pay for results, not process
Accountability to outcomes
Predictable evaluation
Investor diversification and engagement
Environmental Impact Bond Model
Quantified Ventures has a commitment to social innovation, and to linking financial results to proven outcomes.
MAKE GENERIC – Remove CBF; stormwater reference; red language MK – CAROLYN?

4. Daunting problems require innovative solutions – and innovative ways to pay for them
Environmental Impact Bonds can help cities:
Align incentives around social and environmental outcomes
Manage political risk
Transfer performance risk of innovative projects to investors
Access new sources of investment capital
Showcase themselves/projects as ‘open to innovation’
Engage other stakeholders benefitting from projects
Collect performance data on outcomes
Photo: WEF

5. DC Water Issued an Environmental Impact Bond to Fund A Portion Of Planned GI

6. WASHINGTON, DC ATLANTA, GA BALTIMORE, MD
Summary of Urban Green Infrastructure EIBs
WASHINGTON, DC
ATLANTA, GA
BALTIMORE, MD
Primary Value Proposition of EIB
What is the cost-effectiveness of green vs. grey infrastructure for CSO reduction?
How can green infrastructure improve local flooding, water quality, and economic conditions?
What are the ongoing operational costs and viability associated with green infrastructure?
Size
$25,000,000
$14,020,000
$6,200,000 (est.)
Term
30 years (5 year re-tender)
10 years
7 years
Placement
Private
Limited Public
Structure
3-tiered
2-tiered
Outcome Metric
Volume capture (flow / runoff)
Volume capture (capacity / storage)
Plant survivability
Regulatory Driver?
Yes No
Partial
Types of GI
Right of way planters
Bioretention on public parks
Stream & floodplain restoration
Impervious surface removal

7. Agricultural Best Management Practices: Aligning Stakeholder Incentives
EIB Goal: Deploy agricultural Best Management Practices to address water quality and flooding issues of downstream municipalities and water users
Outcomes: reduced costs in addressing flooding and water quality issues

8. Transferring Risk & Engaging Stakeholders: “Protecting Coastal Assets EIB”
EIB Goal: Accelerate investment in wetland restoration in Louisiana through engaging local asset owners as partners and payors
Outcomes: Avoided land loss as a proxy for flood risk reduction
Wetland restoration reduces the rate of land loss, thereby providing flood risk reduction benefits
Local asset owners contribute to bond repayment assuming restoration efforts are successful

9. Multi-payor Transaction: Mountain Bike Trail Development, Ohio
EIB Goal: Provide much-needed up-front capital to a recreation project and engage additional possible payors who benefit from the development
Outcomes: economic development, health
Constructing the Bailey’s trail, a 100-mile mountain biking trail system in the Wayne, will lead to greater utilization and visitation to the Forest
Greater visitation will result in increased spending from local and out of town outdoor enthusiasts and increased economic activity for local communities
Increased economic activity will result in job opportunities and tax revenue
NOTE: TRANSACTION IN STRUCTURING PHASE; DETAILS SUBJECT TO CHANGE

10. Scaling a Proven Intervention: Urban Wood Reclamation
EIB Goal: Scale operations of Humanim, social enterprise addressing urban blight in Baltimore through deconstruction, wood salvage, and resale
Outcomes: job creation, blight elimination, landfill diversion

11. Possible applications and benefits for drinking water systems
Both current and future use cases of EIBs have implications for drinking water systems:
Access new sources of investment capital
Create drinking water quality benefits using upstream conservation or green infrastructure projects
Transfer performance risk of new solutions (e.g. water efficiency or metering technology)
Address deferred maintenance problems with multiple stakeholders (e.g. lead line replacement, non-revenue water)
Photo: naumoid, Getty Images/iStockphoto

12. Eric Letsinger, CEO