Given both the gap in the impact investing literature and the regulatory momentum in Europe, the aim of this chapter is to explore the environmental impact investment panorama in Europe in light of the new regulatory process on sustainable finance and of worldwide impact investing practices. Thus, the chapter aims to propose a holistic view of environmental impact investments in Europe, assessing the theme from an academic and regulatory perspective and from a practical perspective by highlighting potentialities and challenges. The methodology adopted is a multiple case study analysis. The data are collected from publicly available reports and documents. The chapter contributes to the impact investment literature by showing that the terms sustainable finance and impact investing are increasing their points of contact, especially considering the measurement aspect. However, in Europe, some financial models for environmental impact investments remain at an infant stage. Specifically, innovative financial models such as environmental impact bonds (EIBs) are still in the design stage, while they have been developed in other jurisdictions (e.g., the United States) since 2016. Thus, useful policy recommendations may be drafted because of the need to foster the implementation of innovative impact models, especially those based on public-private partnerships, such as environmental impact bonds.