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Fact Sheet: Dc Water Environmental Impact Bond

23 July 2025
Case Study
Publisher : Goldman Sachs

16247

This fact sheet details the DC Water Environmental Impact Bond (EIB), a pioneering “Pay for Success” model in the water sector and the first tax-exempt municipal bond of its kind. The EIB finances green infrastructure projects aimed at stormwater runoff reduction. It features a unique financial structure where contingent payments are made based on project performance against predetermined environmental outcomes. If the project exceeds targets, investors receive an outcome payment; if it underperforms, they make a risk-share payment to DC Water. This innovative bond allows DC Water to test new infrastructure while mitigating financial risk.

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Key topics

Environmental Sustainability and Climate Action, Innovative Finance/ Blended Finance

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Financial Stewardship, Sustainability, & Accountability

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