Financing Climate Resilience in Boston: Engaging and Incentivizing Developers and Private Property Owners
26 Pages Posted: 15 Sep 2016
Date Written: May 18, 2016
Boston is experiencing a real estate boom while also facing the challenge of adapting to climate effects in the form of rising sea levels, increasing precipitation, and the threat of catastrophic weather events as weather patterns shift. Developers and property owners currently lack incentive to make investments in climate resilience measures given evolving regulatory requirements, lack of a business case for making the investments, uncertainty as to the extent of climate effects, and a short time horizon for development and ownership.
This paper explores how the City of Boston and related stakeholders can engage and incentivize developers and property owners to invest in climate resilience measures on privately-owned land and buildings. The paper outlines possible financial and non-financial incentives. For financial incentives, the paper explores 11 potential new revenue streams to finance these investments. The paper also discusses ways to leverage these revenue streams with outside capital through a green bond or environmental impact bond, as well as mechanisms for deploying financing to developers and property owners, such as a revolving loan fund.
Keywords: climate resilience, climate, resilience, Boston, adaptation, flooding, stormwater, public finance
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