Saint Paul, Minnesota’s fight against the Emerald Ash Borer highlights the promise and challenges of sustainable municipal finance. Their Sustainability Bonds addressed the environmental threat while prioritizing low-income communities. However, the project relied on a grant, raising the question: can such efforts be sustained without dedicated resources?
Overall, sustainable bonds are on the rise, and in general, as are impact-oriented securities in the U.S. sub-sovereign space but for local governments with carefully monitored budget, the question remains as to whether or not the juice is worth the squeeze.
Ultimately, a sustainable future for sustainability bonds requires collaboration between government, academia, and potentially the MSRB to create a self-sustaining system for impact assessment within the municipal bond market. Only then can we truly build a future where environmental and social good are financially rewarded.