‘Pay for success’ environmental bonds

A $40M project to rebuild 835 acres of wetlands, and reduce storm surge flooding, at Port Fourchon, La., could become a test for a "pay for success" environmental bond program that may provide construction funding to Louisiana and entice businesses to fund bonuses to bond buyers and contractors if the work works to reduce the loss of wetlands. The "environmental impact bonds" wetland restoration project is a joint proposal of the national Environmental Defense Fund and Quantified Ventures, an investment advisory firm. QV developed a similar performance-based environmental bond program in 2016 for DC Water, the public water system for the nation’s capitol. If the program gets positive vibes among investors, Louisiana may be able to use it to build projects earlier than anticipated as part of its coastal Master Plan, which should reduce construction and interest costs that would only cost over in the future. (Source: NOLA.com 08/15/18)