Stormwater Markets: Concepts and applications

The document argues that public funding is insufficient to meet the rising costs of urban stormwater management driven by urban expansion and climate variability. It advocates for a shift from centralized 'gray infrastructure' to decentralized 'green infrastructure' on private property. To overcome the lack of private investment, the paper suggests the implementation of stormwater markets using quantity-based approaches such as credit trading, mitigation banks, in-lieu fees, and offsets, noting that a customized design is necessary to align with legal frameworks and ensure actor buy-in.

• Public sector funding is inadequate to cover the increasing capital and operational costs of water management infrastructure, a problem exacerbated by rapid urban expansion and increasing climate variability.
• Green infrastructure is presented as a decentralized alternative to capital-intensive 'gray infrastructure' by increasing surface infiltration at the source, though it requires policy support because the benefits of private property investments are shared by many, making them historically unpopular for investors.
• Stormwater markets utilize a quantity-based approach with declining allowances over time, employing mechanisms such as credit trading, mitigation banks, in-lieu fees, and permittee-responsible mitigation offsets.

APA

Cuéllar,, A. B. W. (2018). Stormwater Markets: Concepts and applications. International Institute for Sustainable Development. https://www.iisd.org/publications/report/stormwater-markets-concepts-and-applications

Chicago

Cuéllar,, Andrea Bassi,Laurin Wuennenberg,Andrés. Stormwater Markets: Concepts and applications. International Institute for Sustainable Development, 2018. https://www.iisd.org/publications/report/stormwater-markets-concepts-and-applications.

Wikipedia

{{cite report |last1=Cuéllar, |first1=Andrea Bassi,Laurin Wuennenberg,Andrés |title=Stormwater Markets: Concepts and applications |publisher=International Institute for Sustainable Development |date=14 February 2018 |url=https://www.iisd.org/publications/report/stormwater-markets-concepts-and-applications |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cullar2018stormwater, author = {Cuéllar,, Andrea Bassi,Laurin Wuennenberg,Andrés}, title = {{Stormwater Markets: Concepts and applications}}, institution = {International Institute for Sustainable Development}, year = {2018}, month = feb, url = {https://www.iisd.org/publications/report/stormwater-markets-concepts-and-applications}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }