Econ & Finance Working Group

Financing Green And Gray Infrastructure

15 August 2019

Healthy and well-managed natural systems such as forested watersheds and urban green infrastructure help provide cities with many essential services, including a clean, reliable water supply, protection against floods and fire and improved air quality. In many circumstances, combining this “green infrastructure” with traditional “gray infrastructure”, like dams, treatment systems, and pipes, can enhance system performance, boost resilience, lower costs, and better protect communities. But how do you pay for it? And how do cities move beyond pilot projects to reach scale? Todd Gartner, Director of Cities4Forests and the Natural Infrastructure Initiative at WRI presented case studies and highlighted financing options such as green bonds, “beneficiary pays” arrangements, pay-for-success, insurance for risk reduction, forest resilience bonds and more.