Environmental impact bonds

Environmental impact bonds (EIBs) are financial instruments designed to fund projects that improve environmental outcomes. Investors provide capital for initiatives like habitat restoration or pollution reduction, while governments or organizations repay them based on the success of these projects. If the project meets predetermined environmental goals, investors earn a return; if not, they might lose part of their investment. This innovation incentivizes private investment in environmental solutions, aligning financial interests with ecological benefits. EIBs aim to bridge the funding gap for critical environmental projects while promoting accountability and measurable results.