Report

Financing Soil Remediation: Exploring the use of financing instruments to blend public and private capital

A collection of 17 case studies on a variety of financing instruments that blend public and private capital that could be used to finance the remediation of contaminated soil.
By Laurin Wuennenberg, David Uzsoki, Andrés Cuéllar on September 3, 2018

This report examines innovative approaches to financing the cleanup and regeneration of contaminated soil.

As public budgets tighten, governments around the world are looking at opportunities to attract private capital participation in both land remediation and its productive use and redevelopment thereafter. The business case is intrinsically the value capture in the increase in retail price of land and related business opportunities once the remediation is complete. However, where land value capture is lower and related revenue streams remain uncertain, the case for private capital participation is much less compelling. Governments, in this case, have to fund the remediation through public budgets and thereafter seek opportunities to partner with private counterparties to use the land as “fit for purpose.”

The current report presents 17 case studies on a variety of financing instruments that blend public and private capital. Each case study includes a short discussion on the extent to which each instrument could be used to finance the remediation of contaminated soil.

This report is a part of a series of outputs of a four-year project, Financing Models for Soil Remediation. The overall objective of the project is to harness the full range of green finance approaches and vehicles to manage the associated risk and fund the remediation of contaminated soils.

Report details

Topic
Sustainable Finance
Public Procurement
Project
Financing Models for Soil Remediation in China
Focus area
Economies
Publisher
IISD
Copyright
IISD, 2018