CGC’s International Activity
After successfully helping launch several Green Banks in the US, CGC began its work in the international Green Bank space in 2013, partnering with the OECD organize the inaugural Green Investment Financing Forum (GIFF) at the OECD headquarters in Paris. CGC aided in structuring discussions and background papers on Green Banks for several GIFF events, bringing green finance leaders from around the world to discuss the Green Bank model and future opportunities on the global stage.
CGC co-launched the global Green Bank Network in 2015 at COP21 in Paris. Founding members of the Green Bank Network include Green Banks and similar entities around the world including the Australian Clean Energy Finance Corporation (CEFC), Connecticut Green Bank, NY Green Bank, the Japan Green Finance Organization, Malaysia Green Technology Financing Scheme the and Green Investment Group (formerly UK Green Investment Bank). The Green Bank Network is co-managed by CGC and NRDC on behalf of the global membership.
In 2016, the Hewlett Foundation asked CGC to conduct a first-of-its-kind scoping project to answer the question, “Can the Green Bank model work in developing countries?” Through that project, CGC and partner organizations identified a clear need and opportunity to adapt the Green Bank model into emerging economies. That sparked a growing movement of capital providers, NGOs, philanthropy and nations with interest in the Green Bank model, collectively asking the next logical question: “How do we actually do it?”
CGC is trying to answer that question through two pathways:
- Coordinated action and partnership – CGC is working closely with partners, local actors and funders to develop a systematic approach to Green Bank formation in developing countries to ensure Green Banks can be created in a repeatable fashion, with global best practices, to crowd in private investment in green infrastructure. CGC seeks to leverage its experience and lessons to help shape a framework that can deliver capitalized Green Banks more quickly and effectively.
- Pilot Green Bank – In 2017 CGC launched a new project with the Development Bank of Southern Africa (DBSA) to create the first purpose-built Green Bank in the developing world. With CGC support, the DBSA is now building the Green Bank (called the Climate Finance Facility), a unit with the broader DBSA organization. The new Green Bank will use DBSA and DFI capital, along with climate funds, to catalyze clean energy deployment and “crowd in” private investment. It is being built on international Green Bank best practices, in close coordination with local experts, market participants, and commercial lenders. It will serve as a vital proof of concept for the model and answer critical questions about how the Green Bank model should be adapted to fit emerging markets.
To learn more about the Green Bank opportunity in developing countries, please read the results of our scoping project.