The Great Lakes Impact Investment Platform aims to promote investments in projects that foster sustainable economic development and acknowledge the importance of the long-term management of the ecosystem to support a growing regional population.
The platform was launched in January 2020 and is a collaborative effort of the Great Lakes and St. Lawrence Governors and Premiers, The Nature Conservancy and the University of Michigan’s School for Environment and Sustainability and Center for Smart Infrastructure Finance.
One key objective of the Great Lakes Impact Investment Platform is to help make innovative financing tools for sustainable development projects, like green bonds, more mainstream and visible. To achieve this, the platform highlights binational projects where innovative investment tools support four main project themes: forestry, smart water systems, agriculture and energy. The objective is to bring awareness and accountability to the investments and offer assistance as needed.
Each theme area has a specific goal for the outcomes of the featured projects. Environmental and social goals include a 20 percent reduction of nutrient outputs to sensitive watersheds, 10 percent improvement in energy efficiency for water utilities, and a 10-15 percent reduction in emissions resulting from reduced energy use, sustainable forestry and decreased nutrient runoff.
For example, the platform highlights the Milwaukee Metropolitan Sewerage District’s smart water systems project: “Milwaukee Stormwater Management” where the district will issue US$25 million in “green bonds” to help finance green infrastructure projects that reduce nutrient runoff into Lake Michigan.
While the goals do not have a definitive deadline, for a project to be highlighted on the platform the client organization must commit to annual reporting of their environmental performance against various metrics (developed in partnership with The Nature Conservancy) and must also identify anticipated outcomes. One benefit of the platform is that it provides client organizations with technical assistance, data collection and capacity-building to support the platform’s required environmental metrics and performance reporting.
The platform is helping to highlight significant investments in sustainable development projects happening around the Great Lakes region in both Canada and the United States. Between the launch of the platform in January 2020 through August 2021, it has featured about US$3.9 billion worth of investments in 32 private sector projects.
During 2020, projects featured on the platform have accrued positive environmental outcomes across the Great Lakes region. According to organizers: 44,995 gallons of water have been saved; more than 1.9 million tons of carbon have been reduced and stored; and 4,170 acres of land have been certified.
The platform also aligns its goals with the United Nations’ Sustainable Development Goals (SDGs)—a move that is globally recognizable and will have larger impacts in the rapidly changing political, social and economic domains, according to Mike Piskur, Great Lakes Impact Investment Platform program manager.
SDG 7 aims to “ensure access to affordable, reliable, sustainable and modern energy for all,” and an example includes platform-funded projects such as the DTE Electric 2021 Green Bond that funds renewable energy projects in southeastern Michigan.
Similarly, SDG 14—to “conserve and sustainably use … marine resources”—can be seen in the Combined Sewer Overflow DigIndy Consent Decree Program through the reduction of nutrient overflow into local waterways in Indianapolis, Indiana.
More information about the alignment of the platform’s projects with SDGs is available on the platform’s website.
According to Piskur, the platform has yet to directly collaborate with federal governments or international organizations like the International Joint Commission. However, “potential collaborations with federal agencies may be able to boost the platform’s reach” and are likely to occur as the platform expands its breadth, Piskur said.
The platform’s impact is expected to grow in the years to come, and the Great Lakes region is poised to become a global investment hub for those seeking to make demonstrable environmental improvements, according to Piskur.
To learn more about the Great Lakes Impact Investment Platform and project eligibility, visit greatlakesimpactinvestmentplatform.org or contact gsgp@gsgp.org for more information.
Alexis Lashbaugh is a former student intern with the IJC’s US Section in Washington, D.C.
