Formation and capitalization support of the Climate Finance Facility at the Development Bank of Southern Africa.
CGC served as the primary partner to the Development Bank of Southern Africa for design, capitalization and formation of their new Climate Finance Facility (CFF)—a local Green Bank for Southern Africa. The CFF will address market constraints, playing a catalytic role with a blended finance approach, to increase climate-related investment in the Southern African region. The CFF is a first-of-its-kind application based on the Green Bank model, adapted for emerging market conditions. It offers globally significant proof-of-concept value to middle and lower income nations seeking to address market barriers and quickly scale up the high levels of private investment required by Paris climate commitments. The Green Climate Fund’s decision to provide a USD 55.6M loan the CFF marks the first time the GCF has backed the establishment of a Green Bank. In addition, the (anticipated) USD 50 million loan from the Public Investment Corporation marks the first time a private commercial entity has joined in capitalizing a Green Bank facility.
CGC worked alongside the DBSA to support all aspects of development and formation of the CFF including stakeholder outreach, market analysis, organizational design, financial modeling, business plan development, preparation of the full GCF funding proposal, development of term sheets, application to the Public Investment Corporation, and other relevant areas of work.
Concept formation, legislation, formation support and strategy development for the first Green Bank in the US.
CGC was an integral early stage and long-term partner with government leaders in Connecticut to conceive of, design, advocate for and implement the first state-level Green Bank in the US. CGC placed multiple dedicated staff members on the ground to develop the concept, build broad support among industry and lawmakers, draft legislation and secure its passage to create and fund the Green Bank with tens of millions of dollars per year. CGC continued to support the Green Bank through the development of strategy, key-hiring decisions, financial management and metrics, and ultimately product creation and implementation. CGC remains a close thought-partner with the Connecticut Green Bank.
Formation of a new independent nonprofit, called the Colorado Clean Energy Fund.
CGC worked as a partner of the Colorado Energy Office (CEO) to develop and launch an independent nonprofit Green Bank in Colorado. Using funds awarded through a competitive process under the US Department of Energy’s State Energy Program, CGC explored the viability of various creation pathways and determined that a nonprofit model for Green Bank operations was the most promising. CGC then incorporated the Colorado Clean Energy Fund (CCEF) to act as the state’s Green Bank. Colorado Governor John Hickenlooper announced the formation of the bank in December 2018. As the Green Bank matures, CGC will continue to support the CCEF in capital raising, board formation, and operational management.
Montgomery County, Maryland, US
Launch and initial staffing of the first county-level Green Bank in the US.
CGC was an integral part of the creation of Montgomery County, Maryland’s Green Bank, capitalized with 14.2M USD from the Pepco-Exelon merger settlement agreement in 2017. CGC conducted a market assessment, worked to pass legislation that created the MCGB, and oversaw the creation of the organization itself. The MCGB has launched its first product, and is developing follow-up products currently.
The market assessment informed recommendations made for first products for the newly created organization. CGC also worked with County Council and Executive branch stakeholders to ensure passage of the legislation creating the MCGB. In addition, CGC secured seed operating capital from philanthropic foundations to enable a CGC employee to serve as the Acting Executive Director of the organization from 2016-2017, when a permanent CEO was hired. The Acting Executive Director oversaw the establishment of the organization, including product development, governance, operations, and communications work.
Completion of market opportunity assessment and formation of a new, independent nonprofit called the Nevada Clean Energy Fund, in partnership with the Nevada Governor’s Office of Energy.
CGC conducted a comprehensive market assessment for the State of Nevada, which informed legislation that created the NCEF. Since the passage of the legislation, CGC has overseen the creation of the organization, including business planning, operations, communications, and organizational management work.
New York, US
Building the business and policy case, financial modelling and early product concept creation for the largest US-based Green Bank.
CGC was asked to support NYSERDA’s efforts in 2013 to build the case for the creation of the NY Green Bank as a division of NYSERDA and gain the approval of the state utility commission to invest $1 billion of public capital into the Green Bank. CGC partnered with a private consultant to evaluate the existing programs offered in the state, aggregate best practices of similar finance programs from across the country, and interview nearly 100 market stakeholders in NY. CGC also created a financial model that showed how a portfolio of Green Bank products could create multiples of private sector investment leverage. When combined with public capital recycling, the model also showed that the Green Bank would have a greater total investment impact than the subsidy programs the public capital would otherwise be used for. This package of materials was presented to the utility commission, which approved the capitalization and formation of NY Green Bank. CGC and NYGB continue to coordinate on a range of topics, including the expansion of the Green Bank ecosystem.