What is the conservation impact bond (CIB) model?
Conservation Impact Bonds (CIBs) fit broadly within a category of social finance approaches known as outcomes-based financing. Outcomes-based models cover a broad range of funding and structures that involve payment for the achievement of predetermined social or environmental outcomes. In conservation finance, outcome-based models include pay-for-performance, payment-for ecosystem-services, avoided-cost and other models. These models are based on a premise that one or more entities believe there is a tangible, monetary value associated with a service provided by nature and they are willing to pay to ensure nature continues providing this service.
DC Water Environmental Impact Bond. In September 2016, the DC Water and Sewer Authority issued a $25M tax exempt EIB, the first of its kind in the United States. Proceeds of the bond will be used to fund green infrastructure projects (rain gardens, permeable pavements, green roofs, rain barrels).
The Forest Resilience Bond (FRB). A private partnership between Blue Forest Conservation, Encourage Capital, World Resource Institute and numerous agencies and research partners to finance forest restoration in the western U.S.