The National Climate Bank proposed in recent legislation is designed as an independent nonprofit institution that will be empowered to invest $35 billion in federal funds, while also mobilizing private capital.
This design and approach brings unique advantages compared to funding programs directly through government agencies, and there are a number of precedents that show how a such a structure can work. Existing federally-funded initiatives already do the following:
- Mobilize private investment by deploying public capital into target markets.
- Establish new nonprofits funded with public and private capital.
- Independently invest federal funds in service of a mission.
A new CGC white paper takes a deeper dive into several of these institutions as precedents for the National Climate Bank’s design. The findings help show why a nonprofit structure makes sense for the National Climate Bank to maintain independence and effectively drive public and private clean energy investment.
“Meaningful greenhouse gas emissions reductions to address the climate crisis will require significant investments to transform the energy sector and the nation’s infrastructure on a large scale. Learning form established precedents and creating an effective institutional framework for the Climate Bank will be critical.”
See the full paper for more on the precedents set by existing institutions, and the lessons and takeaways that can be applied to the National Climate Bank.