Green bonds issued for water project
Even bonds can go green. The designation applies to bonds certified as promoting environmental sustainability. Green bond financing is in keeping with the Council’s strategic priorities to promote sustainability and to reduce the City’s overall carbon footprint.
To address flooding around American Boulevard and Knox Avenue, the City is using green bonds for the first time. The $10.8 million linear stormwater storage project will address flooding and improve water quality. Throughout the 15-year duration of the bonds, the City will report sustainability results using standards certified by the Nine Mile Creek Watershed District.
Bloomington is one of the first cities to issue green bonds. Minneapolis and St. Paul have also recently enacted large-scale green bond projects.
Green bonds are increasingly popular investments with a reputation for lower interest rates that can save taxpayer dollars. The expanding green bond market supports action on climate change on a local level for far-reaching initiatives such as the Paris Agreement to curb greenhouse gas emissions internationally.