Massachusetts Green Bonds
In 2014, the state of Massachusetts issued $350 million in “green bonds” to fund water infrastructure projects, including stream bed restoration, open-space protection, and stormwater management. The difference between green and traditional bonds, is that the the proceeds form the sale of green bonds are used for projects that are beneficial to the environment. Investors who buy green bonds are paid interest and principal from the same revenues as other municipal bonds.
Green Bond proceeds in Massachusetts have been spent in one of four categories:
- Land Acquisition, Open Space Protection and Environmental Remediation
- River Revitalization and Preservation and Habitat Restoration
- Energy Efficiency and Conservation
- Clean and Drinking Water
As of 2015, all of the Clean and Drinking Water category spending has gone to fund the the Department of Conservation and Recreation’s Stormwater Management Programs or state match dollars for the Massachusetts Clean Water Trust. Funding for clean and drinking water projects around the Commonwealth are in the form of low or no-interest loans to cities and towns for water infrastructure projects.
Other example projects funded by the Green Bonds in Massachusetts include:
- Broad Meadows Restoration in Quincy, MA comprised excavation of 60 acres of dredge spoils and re-creation of a salt marsh and tidal creek system.
- Eel River Headwaters Restoration (Plymouth, MA), comprising removal of six dams, replacement of two culverts, and naturalization of 40 acres of wetland in a former cranberry bog, and planting of 17,000 Atlantic white cedar trees.
- Bond funds also covered the planting of new trees in the City of Worcester and surrounding areas, including several urban "orchards." These orchards are small plots within the city deigned to accommodate fruit bearing trees, to help with access to health foods in these neighborhoods.
Publication Date: 2014
- State of Massachusetts
- Green Infrastructure Toolkit > How to Pay for Green Infrastructure: Funding and Financing > Government Financing
- Funding program