New Green Bond ​Helps Finance ​Forests and ​Wetlands ​Protection

Published on by in Business

New Green Bond ​Helps Finance ​Forests and ​Wetlands ​Protection

A new green bond standard allows water projects involving natural water infrastructure such as forests, farms and rivers to be certified as green bonds. Here’s why that matters for the future of water.

By Todd Gartner and John H. Matthews

A new financial mechanism—“green bonds” that pay for using ecosystems as “natural infrastructure” for clean, ample water—can help.

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Representative image, Source: Pixnio, Labeled for Reuse

Green bonds for natural infrastructure

Most people think of water infrastructure as dams, pipes and water treatment plants. Natural infrastructure like healthy forests, farms, rivers and wetlands can also address supply and quality challenges by filtering water, buffering against floods and regulating flow.

Combining built and natural forms of infrastructure – for example, by restoring a forest that surrounds a water treatment plant—combines the benefits of both systems.

These hybrid approaches often save money, increase the lifespan of built infrastructure, improve resiliency to climate change and produce co-benefits like reduced carbon emissions, recreation, rural jobs and habitat protection.

Read full article: Eco-Business