Many Pathways to Creating a Green Bank

Green Bank Creation

The question CGC is asked most often by policymakers and Green Bank supporters is, “How do you actually create a Green Bank?” The truth is that there is no right answer or single approach. The correct path depends on the specific fiscal, economic, political and institutional circumstances of the given market. And the form the Green Bank takes, and its sources of funding are not always the same.

This means there are several mechanisms for creating & funding Green Banks, and there are several types of Green Bank forms and funding sources.  The common mechanisms are regulation, legislation, and administrative/executive action. There are also three general categories of how to structure and fund a Green Bank: create a new structure or new source of funds, repurpose an existing structure or source of funds, or place a Green Bank within an existing institution and use its funds.

When it comes to creating and capitalizing a Green Bank, different pathways make sense for different situations. We’ve created the below chart as a way of visualizing the possibilities!

gb-creation-mechanisms-1

Green Banks in chart:

  • Australia’s Clean Energy Finance Corporation (CEFC)
  • California Lending for Energy and Environmental Needs (CLEEN) Center
  • Connecticut Green Bank (CGB)
  • Hawaii Green Infrastructure Authority (HGIA)
  • Montgomery County Green Bank (MCGB)
  • New York Green Bank (NY Green Bank)
  • Rhode Island Infrastructure Bank (RIIB)
  • United Kingdom Green Investment Bank (UK GIB)

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