Climate Neutral Bonds: A Local Global Warming Solution

A new report from the Institute for Local Self-Reliance (ILSR), shows how communities can act now to reduce global warming. Through an innovative concept, climate neutral bonds, local and state governments can require that any new project financed with tax-exempt bonds would generate no new global warming pollutants. If a new building is financed, for example, any greenhouse gas additions from the operation of the building would have to be offset with reductions from other sources in the community. In 2004, local and state governmental bodies financed about 9,000 individual projects with about $230 billion in municipal bonds. Tax-exempt municipal bonds are issued to finance a variety of development and public works projects, from police stations and schools to water treatment facilities and power plants. Collectively, municipal bonds finance projects that consume large amounts of energy over the life of the bond. Says John Bailey, author of the report, “The slightly higher upfront investment in energy efficient or renewable powered buildings repays itself several times over during the life of the bond.” “With no federal action on the horizon, cities and states must lead the way in reducing global warming, he says . “If a city or other public agency […]

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