Key Concepts Explained
Community-based public-private partnerships (CBP3)
A CBP3 is a performance-based contract between the public sector and the private sector to do some or all of design, build, financing, operate, and maintain public infrastructure. The approach is centered around community governance and makes a focused effort to provide for local economic growth and improved quality of life, often in urban and underserved communities.
Community-based Public Private Partnerships: An Animation by RISC
Environmental Impact Bond (EIB)
An EIB is an environmental outcome-focused bond that functions as a debt security issued to finance capital expenditures. It is backed by the payor with regular payments of interest and full repayment of principal at the end of the term. Typically, it is structured to incentivize innovation by sharing risk between the payor and the private investors.
Environmental Impact Bonds: An Animation by RISC
Credit trading programs enable property owners who are subject to an on-site stormwater retention requirement to meet a portion of their requirements by buying stormwater “credits” from other property owners rather than building all needed GSI on their own property.
Stormwater Credit Trading: An Animation by RISC
A green bond is a bond specifically earmarked to be used for climate and environmental projects. To be certified as a green bond, the issuer provides information regarding the expected environmental outcomes of the project to be paid for with the bond, and commit to future reporting to demonstrate what the actual environmental impacts of the investment are compared to what was expected. In the United states, the first green muni bond was issued by Massachusetts in June 2013. From 2008-2018, 350 bonds issued in the Great Lakes States were tagged “green” in the financial databases, although they mainly focused on energy, housing, mass transit and industry development.