Climate change

A pair of infrastructure experts are proposing a $25 billion federal appropriation to create state bond banks across the country.

As the public finance landscape evolves with increased philanthropic interest and a focus on climate resilience and community health, it's time for traditional market participants to align their investments with impactful outcomes to drive systemic change and foster equitable growth.

Population growth has spurred economic growth in the South. But the changing climate, and risks climate change poses there, may turn that equation on its head.

The steady demand for municipal bonds in high-risk areas underscores the complex relationship between climate change and financial markets.

Municipal analysts have been tracking the challenges faced by home insurers in California and other states plagued with extreme weather events as a harbinger of credit risk.

Enviva's $353 million in tax-exempt bonds currently are among the liabilities at stake in the company's Chapter 11 bankruptcy.

Climate change presents a higher risk for muni bonds, compared to other investments, because the debt often has longer maturities and therefore, higher vulnerability to the long-term effects of climate change, said S&P' Sustainable1's global head of research and methodology.

The extension of the current solar net metering system could lower revenue for the utility.

"The financial and engineering industries need to align to get the owners to do what it is they need to do to make sure it's a durable asset," said Maria Lehman, immediate past president of ASCE.

Major headwinds for the muni market include climate change, growing federal debt, shrinkage of the workforce, the impact of remote work, cybersecurity attacks, and political polarization. And they are poised to be costly for states and municipalities.