The Clean Energy Future Blog

By Coalition for Green Capital

This week Joe Biden announced a $2-trillion climate plan. The ambitious plan would put the U.S. on an “irreversible course” toward a carbon-free energy sector by 2035.

One of the tools Biden looks to use to achieve this goal is an “innovative financing mechanisms that leverage private sector dollars to maximize investment in the clean energy revolution.” 

The House just passed a bill containing this mechanism: The Clean Energy and Sustainability Accelerator. Senators have introduced the same mechanism under the name National Climate Bank. 

Over the last 10 years, in more than a dozen states across the country, green banks have provided investments along with private sector funds to accelerate clean energy deployment. Biden’s Plan would endorse and expand these mechanisms. Green banks are an essential technique to achieve the goal of a 100% switch from carbon to clean electricity generation in 15 years.

Job creation in a post-COVID world is central to Biden’s plan; investing in clean energy, resilient infrastructure, clean transportation, housing, and school efficiency upgrades, and sustainable agriculture is the way to do it.

Biden’s plan also recognizes what the Coalition for Green Capital has both seen in states and proven with independent analysis: Green banks create jobs. And our country needs jobs of the future more than ever. 

Biden plans “to create millions of jobs producing clean electric power for American families and businesses.” 

According to a recent economic study by Vivid Economics, a National Green Bank capitalized at $35 billion would create 5.4 million new jobs in its first five years of operation ( Bounce Back Greener Vivid Economics, 2020).

The proposal also includes a significant commitment to environmental justice by “setting a goal that disadvantaged communities receive 40% of overall benefits of spending in the areas of clean energy and energy efficiency deployment; clean transit and transportation; affordable and sustainable housing; training and workforce development; remediation and reduction of legacy pollution; and development of critical clean water infrastructure”. 

This matches perfectly with the mission and activities of a green bank to fill financing gaps and serve communities that are currently being excluded from the benefits of the clean economy.

By Jeffrey Schub

Yesterday the Biden-Sanders Unity Task Force on Climate Change made a sweeping set of policy recommendations to the Democratic National Committee and the Biden campaign. The committee, co-chaired by Former Secretary of State John Kerry and Representative Alexandria Ocasio-Cortez provided a roadmap for how the U.S. should address climate change while supporting environmental justice, job creation and good wages.  One specific area of recommendations called for new federal financing capabilities that can leverage private investment and specifically direct capital to environmental justice communities. 

The concepts described and even the language used by the Task Force mimic that of the green bank model. And more specifically, the recommendation closely aligns with the newly-passed legislation in the House to fund a “Clean Energy and Sustainability Accelerator” with $20 billion, as well as the express recommendation of the House Select Committee on the Climate Crisis to form a National Climate Bank modelled on the legislation passed last week.

Under the area of policies titled, “Ensure Access to Capital in Environmental Justice Communities,” one recommendation reads:

Building the ability of the federal government to finance infrastructure, including working with states and the private sector to develop an innovative financing mechanism that leverages private sector dollars to maximize investment in the clean energy revolution and environmental justice communities.

Though the term green bank or climate bank is not named explicitly, CGC itself could not have described the National Climate Bank more succinctly. According to the legislation just passed by the House last week, Congress would capitalize a non-profit entity to serve as the national green bank that would be legally required to a) partner with states and communities to build local green bank financing capacity; b) leverage private investment; c) prioritize environmental justice communities and d) seek to maximize emissions reductions per public dollar. The alignment between this recommendation and the legislation is total.

In addition, the recommendation directly below this one states that these policies should achieve their objectives by: 

Ensuring that infrastructure investments dedicate a large proportion of support to these communities in deploying or undertaking investments in clean energy, energy efficiency, clean water, clean mobility, environmental remediation, green spaces, green infrastructure and health and safety improvements

This point not only reinforces the prioritization of investment in environmental justice communities (which the legislation requires), but also enumerates a long list of kinds of clean energy and infrastructure projects that need to be eligible for investment. This, too closely aligns with the language of the National Climate Bank legislation, which authorizes investment in 1) renewable energy; 2) energy efficiency; 3) clean transportation; 4) industrial decarbonization; 5) grid infrastructure; 6) sustainable agriculture and forestry and 7) climate-resilient infrastructure. Again, the alignment between the Task Force recommendations and the National Climate Bank legislation is clear.

The entire package of recommendations put forward by the Task Force should be applauded. And for national green bank financing specifically, this document marks yet another exciting step on the march towards buy-in at the highest levels of government.

By Coalition for Green Capital

By Jean Haggerty

In the last few months, Congress has authorized more than $3 trillion in coronavirus relief, but so far none of this money has been for job creation.

“It’s been a good idea for a long time, but it’s particularly vital now for job creation,” Jeffrey Schub, the executive director of the Coalition for Green Capital, a nonprofit that incubates and supports local clean energy finance institutions – Green Banks – to drive greater clean energy investment into existing and new markets. “Any climate plan for 2021 must, first and foremost, be about job creation and equity and climate justice,” Schub added.

…This is a huge milestone for the national green bank movement

Read the full story. 

By Coalition for Green Capital

House Provides $20B to Nonprofit Accelerator for Clean Energy, Transportation Infrastructure

Based on National Climate Bank legislation included in House Climate Action Plan

20% of funds required to go to low-income, minority communities

WASHINGTON —The U.S. House of Representatives today provided $20 billion for a nonprofit accelerator to build clean energy and transportation infrastructure and put millions back to work. The nonprofit accelerator and funding, based on the National Climate Bank Act, was added to the Moving America Forward Act by a vote of 243-178. Final passage is expected tomorrow.

The nonprofit accelerator would use the proven green bank model to fund projects. With this $20 billion, more than 3 million jobs can be created. With $35 billion, 5.4 million jobs could be created. Twenty percent of the funds must go to low-income and climate-impacted communities, many of which have also been hard hit by the COVID-19 pandemic. 

“We must build a cleaner and stronger future for our country. This nonprofit accelerator and funding will put people to work and reduce the impact that climate change has on low-income and communities of color,” Coalition for Green Capital cofounder and CEO Reed Hundt said. “We urge Senate leaders to use this tool that a dozen states have shown works to create millions of jobs.”

The passage of the funding and legislation—based on H.R. 5416 and S. 2057 and introduced by U.S. Rep. Debbie Dingell, U.S. Sen. Ed Markey and U.S. Sen. Chris Van Hollen, respectively—comes after the House Select Committee on the Climate Crisis included it in an action plan on Tuesday. 

Hundt added: “This addition reflects more than a decade of advocacy by Congresswoman Debbie Dingell, Chairman Frank Pallone, Sen. Ed Markey, Sen. Chris Van Hollen and many others. Especially innovative and exciting is the commitment to fund a nonprofit accelerator, and the good news is it already exists and is ready to roll as soon as the $20 billion is deposited.”

Authorized projects include renewable power, building efficiency, grid infrastructure like transmission, industrial decarbonization, clean transportation, reforestation and climate-resilient infrastructure. Because the dollars are repaid over time, they can be recycled to make additional investments in the future. 

The inclusion of the nonprofit accelerator comes after nearly 100 organizations sent a letter to U.S. House and Senate leaders requesting future economic recovery legislation include such funding. With 40 million Americans filing for unemployment due to the COVID-19 pandemic so far and studies showing that up to 42 percent of those jobs will not return, the groups argue that Congress must urgently make long term investments that create jobs and build a cleaner future. 

Recent national polling shows eight out of 10 Americans want Congress to create clean energy jobs and seven out of 10 support depositing billions to achieve this. 

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By Coalition for Green Capital

By Dino Grandoni,

The nation’s automakers would manufacture only electric cars. Utilities would have to stop producing pollution linked to climate change. And the federal government would double its investment in mass transit.

All this and more was proposed by House Democrats on Tuesday under a plan aimed at bringing the U.S. economy’s greenhouse gas emissions — including carbon dioxide and methane — to zero by 2050 …

… The package would also create a national climate bank, which would help finance projects that cut emissions … 

Read the full story. 

By Coalition for Green Capital

FOR IMMEDIATE RELEASE
June 30, 2020 
press@cgcstagingsite.wpengine.com

House Committee Turns to New National Climate Bank Nonprofit to Solve Climate Crisis, Create Jobs 

Follows nearly 100 groups backing proposal 

New initiative would create 5M jobs, with 20% of funds going to low income, minority communities 

WASHINGTON —The House Select Committee on the Climate Crisis has included a National Climate Bank nonprofit in its action plan on how to solve the climate crisis while putting millions back to work. The new policy proposal was also included in the House’s CLEAN Future Act. 

“Using this innovative financing tool will accelerate the country’s transition to a cleaner future and put people to work. Even with a modest amount of funding, a dozen states have shown how the nonprofit green bank model rebuilds America and lessens the impact of climate change on communities of color. Fully funded by a combination of public and private investment at the national level, we can create 5.4 million jobs,” Coalition for Green Capital Executive Director Jeffrey Schub said. “We applaud this inclusion and look forward to continuing its work with the committee.”

Twenty percent of the funds must go to low-income and climate-impacted communities, many of which have also been hard hit by the COVID-19 pandemic.

The inclusion of the nonprofit comes after nearly 100 organizations sent a letter to U.S. House and Senate leaders requesting future economic recovery legislation include such funding. With 40 million Americans filing for unemployment due to the COVID-19 pandemic so far and studies showing that up to 42 percent of those jobs will not return, the groups argue that Congress must urgently make long term investments that create jobs and build a cleaner future. 

As envisioned in H.R. 5416 and S. 2057, the green bank nonprofit model would pair each public dollar with multiple private ones to build a range of clean energy projects throughout the U.S. This includes renewable power, building efficiency, grid infrastructure like transmission, industrial decarbonization, clean transportation, reforestation and climate-resilient infrastructure. Because the dollars are repaid over time, they can be recycled to make additional investments in the future. 

Recent national polling shows eight out of 10 Americans want Congress to create clean energy jobs and seven out of 10 support depositing billions to achieve this. 

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