Environmental Impact Bonds (EIBs) are financial instruments designed to fund projects that deliver measurable environmental benefits. They allow governments or organizations to raise capital for initiatives like water quality improvement or habitat restoration by attracting private investors. These investors receive returns based on the success of the project in achieving specific environmental outcomes. The structure of EIBs typically involves collaboration between public entities and private investors. If the project meets its goals, the investors earn a profit; if not, they may receive lower returns. This model encourages innovation and accountability in addressing environmental challenges while providing necessary funding for sustainable initiatives.