Due to challenges of aging infrastructure, limited federal funding, growing populations and climate change, U.S. public water utilities must build the water utility infrastructure of the future--presenting an opportunity to apply new thinking and innovation to the delivery of safe, affordable drinking water in ways that are resilient, reduce pressures on ecosystems and sustain fiscal health.
Ceres is working to transform this sector by working with public water providers to adopt new business models that encourage conservation, while investing in a new generation of flexible, resilient and energy-efficient infrastructure that sustains and protects our municipal water supplies.
We also engage with bond investors, and others in the capital markets, to develop credit risk assessment methods that appropriately value sustainable water governance and resource management, and to develop standards that will help channel capital toward sustainable water systems.
Investors finance the projects that keep our taps flowing by purchasing municipal bonds that pay for pipelines, treatment plants and other key infrastructure projects. These investors need better information on how water utilities are managing wide-ranging risks, including more vulnerable water supplies and declining revenue.
Ceres works with bond-rating agencies, utilities and investors to understand the long-term financial risks of managing water shortages through traditional over-reliance on new large-scale water supply projects. Working closely with bond investors and credit rating agencies, we’re improving water utility disclosure on these topics to create more sustainable water resource management projects moving forward.
Climate Water Bond Standard
Climate resilient investments in water are desperately needed if sustainable infrastructure is to be achieved. But investors often do not have adequate information to evaluate whether bonds earmarked for financing sustainable, climate-resilient water infrastructure can achieve their stated purpose. Ceres, in collaboration with the Climate Bonds Initiative, World Resources Institute, CDP and the Alliance for Global Water Adaptation has developed the world’s first standard for low carbon and climate resilient water bonds.