Catalyzing Investment in Urban Sustainability
U.S.-Brazil Joint Initiative on
Urban Sustainability

Finance

Funding & Innovative Finance Strategies

Brownfield Cleanup Tax Expensing Incentive

The tax Incentive, targeted to private site owners, allows recovery of cleanup costs in the year incurred, rather than having to be capitalized over time (up to 30 years for many projects).

CEPACs

Certificates of Potential Additional Construction (CEPACs) are a method of leveraging private dollars to finance public investment in neighborhood revitalization through a process of rezoning and construction permit auctions.

Clean Development Mechanism (UNFCCC)

The United Nations Framework Convention on Climate Change (UNFCCC) established the Clean Development Mechanism (CDM) as part of the Kyoto Protocol.

Climate and Green Bonds

Climate and green bonds are fixed-income financial instruments that are issued in order to raise capital for the implementation of environmental projects, often climate change mitigation- or adaptation-related activities or renewable or energy efficiency projects, and therefore allow investors to report to their members on how their secure investments are also contributing to addressing environmental challenges.

Energy Service Company (ESCO) Model

The ESCO model was developed to recoup the savings from implementing more energy efficient strategies onto commercial and industrial properties.

Project Aggregation

High transaction costs can make financing small projects extremely difficult.

Property Assessed Clean Energy (PACE)

PACE programs can help home and business owners pay for the upfront costs of green initiatives, which the property owner then pays back by property taxes increased by a set rate over about 20 years.

Public Grant and Incentive Programs

Federal, state, and local governments often offer a range of grant and incentive programs to motivate and support activities, such as environmental protection, clean energy, urban infrastructure, and sustainable communities development.

Public-Private Partnerships for Urban Sustainability

A public-private partnership is an agreement between a public agency (federal, state, or local) and a private-sector entity that uses the specific skills and assets of each sector for the delivery of a service or facility used by the general public.

Revolving Loan Funds

A revolving loan fund (RLF) is a gap financing measure primarily used for development and/or expansion of a specific initiative, often in the case of environmental investment it's related to water management or environmental cleanup.

Special Service District or Business Improvement District

The SSD/BID is a defined area within which businesses are required to pay an additional tax or fee in order to fund improvements within the district's boundaries.

Stormwater Credit Program

The Philadelphia Stormwater Regulations provide the legal measures for implementing stormwater billing. The Gross Area and Impervious Area of a property are used to determine the Stormwater Management Services (SWMS) Charge.

Sustainable Public-Private Loan Strategy

Public-private loan structures can support sustainability projects that might not otherwise take place.

Tax Credits and Incentives to Promote Sustainability

Governments have often used tax credits or incentives to motivate or increase investment in a particular sector or area.

Tax Increment Financing (TIF)

As is evident in major cities around the United States, TIF can be a valuable public finance tool for redevelopment projects.

Technical Assistance Loans

Technical assistance loans are intended to provide a range of institutions, including municipal, state, and national governments; private-sector entities, including small, medium, and large companies; financial intermediaries; and nonprofit organizations, with initial low-interest or in some cases zero-interest rate capital to finance activities that help the borrower develop the capacity to absorb high-interest rate loans and financing.

Transit Revitalization Investment District (TRID)

In 2004, the state of Pennsylvania passed the TRID Act.