In June 2021, the Buffalo Sewer Authority (BSA) issued a $54 million Environmental Impact Bond (EIB) to incentivize the installation of green infrastructure throughout the City of Buffalo. An EIB is a form of a green bond that focuses on the prediction, measurement, and public reporting of environmental and/or social outcomes and features that link financing terms to the achievement of those outcomes.

The proceeds from the BSA EIB will fund the design and implementation of green infrastructure in Buffalo – such as rain gardens, green roofs, stormwater planters, and permeable pavers – to store and control the flow of stormwater, reduce combined sewer overflows, enhance community benefits, and support an estimated 700 local jobs. This approach enables BSA to achieve some of the economic, environmental, and health co-benefits associated with nature-based solutions to stormwater management through its Rain Check 2.0 Program.

The BSA issuance was a labeled EIB, Green Bond under the ICMA Green Bond Principles, verified GreenStar Bond, and aligned with six U.N. Sustainable Development Goals.

The Ralph C. Wilson, Jr. Foundation, Great Lakes Protection Fund, and the Community Foundation for Greater Buffalo funded ECT to bring newer models of delivery, including alternative financing options, to the Greater Buffalo region. ECT worked with Morgan Stanley and Quantified Ventures LLC, that provided underwriting and outcomes-based financing advisory services, respectively, to ensure the issuance met the high standards of EIBs.