The Clean Energy Future Blog

By Coalition for Green Capital

An update from CGC’s Executive Director Jeff Schub:

I am thrilled to announce exciting growth and development for the CGC team as we kick-off 2020.

First, I am pleased to share that Alejandra Nunez has joined CGC as our first General Counsel. Ale comes to CGC from Sierra Club, where, as a Senior Attorney, she led litigation and regulatory work on a range of climate change policies. This includes the Clean Power Plan and the New Source Performance Standards, the CAFE and GHG vehicle standards for light-duty and heavy-duty vehicles, carbon pricing, clean transportation policies, and more. She worked on several legislative initiatives, and also focused on environmental justice matters, building partnerships with environmental justice groups and advocating for the inclusion of EJ concerns into multiple climate policies at the federal and state levels. At CGC she’ll spearhead much of the legislative and coalition-building work for the National Climate Bank campaign, as well as support legal activity across the organization.

I am also excited to share that Jill Bunting has been promoted to Deputy Director of CGC. After taking on increasing responsibility and leadership at the organization, Jill will now guide CGC’s growing portfolio of Green Bank creation projects. She will continue to be most heavily involved in state and local Green Bank projects in the U.S. And in this new role Jill will also take on a larger share of responsibility for management, fundraising and administration at the organization.

Last but not least, Rob Youngs has been promoted to Director, International Green Bank Development. For more than 4 years Rob has worked tirelessly around the world to advance the Green Bank field in developing countries. He’s also built unparalleled expertise on how Green Banks interact and engage with national development banks, DFIs and climate funds like the Green Climate Fund. With his growing network of partners and Green Bank know-how, Rob has grown the pipeline of opportunity in South America and Asia. He has also positioned the Green Bank Network and the new Green Bank Development Platform for future success.

CGC could not be more excited about the team we are building and the work in front of us in 2020!

By Coalition for Green Capital

Press Release: Jan. 8, 2020.

Today leaders from the House Energy and Commerce Committee previewed a legislative framework designed to ensure a 100 percent clean energy economy by 2050. The framework included the creation of a National Climate Bank to invest in a rapid, affordable, and equitable clean energy transition. The following statement comes from Jeffrey Schub, Executive Director of the Coalition for Green Capital:

“In presenting this framework, the Energy and Commerce Committee is showing critical leadership in the face of the climate crisis. In particular, the National Climate Bank set forth in this plan is based on legislation already introduced in the House and Senate, and on a track record of success established by state and local green banks across the country. The National Climate Bank will help the final package achieve a faster and cheaper clean energy transition, while supporting and investing in vulnerable communities including rural communities, low-income communities, and environmental justice communities.”

The National Climate Bank Act was introduced in in the House in December 2019 by Rep. Debbie Dingell, and in the Senate in July 2019 by Sens. Ed Markey and Chris Van Hollen.

Recent press on the National Climate Bank Act:

• CleanTechnica: Why You Should Care About the National Climate Bank
• PV Magazine: National Climate Bank Could be a Boon for Solar
• Utility Dive: House green bank bill aims to leverage $35B in government funding into $1T in private investment
• Smart Cities Dive: House Dems Introduce Legislation to Create National Climate Bank
• Energy News Network: Northeast Green Banks Inspire National Proposal for Clean Energy Financing

By Coalition for Green Capital

In a new CleanTechnica interview, CGC Executive Director Jeff Schub explains how a National Climate Bank will build on the track record of success already established by state and local green banks, and accelerate the clean energy transition.

“State and local green banks have already mobilized billions of dollars into clean energy projects, proving that the model works. Not only have they shown that they can breathe life into projects that wouldn’t otherwise have been built, they have done so with a unique focus on equity and community engagement.”

The post covers the National Climate Bank’s potential to drive market transformation, including mobilizing up to $1 trillion in public and private investment. Check out the full piece on CleanTechnica.

By Coalition for Green Capital

Today Sen. Elizabeth Warren released a Plan to Create 10.6 Million Green Jobs, which includes a green bank modeled on the National Climate Bank Act. The following statement comes from Jeffrey Schub, Executive Director of the Coalition for Green Capital:

“Green banks across the country have shown how to accelerate clean energy investment. We absolutely need to take this proven model to scale to drive investment into communities across the country. Senator Warren should be applauded for making this solution part of her Green Jobs plan.”

The green jobs plan cites CGC analysis of the National Climate Bank Act, which finds that a Climate Bank capitalized with $35 billion could mobilize up to $1 trillion in public and private investment over 30 years.

The National Climate Bank Act was introduced in the Senate in July by Sens. Ed Markey and Chris Van Hollen, and in the House last week by Rep. Debbie Dingell.

Recent press on the National Climate Bank Act:

• PV Magazine: National Climate Bank Could be a Boon for Solar
• Utility Dive: House green bank bill aims to leverage $35B in government funding into $1T in private investment
• Smart Cities Dive: House Dems Introduce Legislation to Create National Climate Bank
• Energy News Network: Northeast Green Banks Inspire National Proposal for Clean Energy Financing

By Coalition for Green Capital

Last week, the Montgomery County Green Bank held an event to celebrate the completion of a milestone energy efficiency project, which enabled the installation of improvements to a large office building in Bethesda, Maryland. The project provides a clear example of how green banks can benefit private capital providers as well as the building’s owners, tenants, and the local community.

For this office building, a major part of the project was to replace the large rooftop heating and cooling unit. The cost of the new heating and cooling unit was $206,000. This project represents the first in a pipeline of projects expected to be financed through the Commercial Loan for Energy Efficiency and Renewables (CLEER) program, a loan-loss reserve program that substantially de-risks the project from a lender’s perspective. Revere Bank provided the loan, which was backed by the Green Bank. Describing their partnership with Montgomery County Green Bank, Revere Bank Co-President and CEO Ken Cook said:

“Revere Bank is pleased to have been able to make this investment in conjunction with our partnership with the Green Bank and we are proud to further express our commitment to clean energy investment in the County.”

The new heating and cooling system will use 17 percent less energy than the old system. In total, with the new system and other improvements to the building’s lighting, envelope, and ductwork, the building will now annually save more than 850,000 kilowatt hours of energy and $110,000 in operating cost, while eliminating 600 tons of greenhouse gas emissions.

County leaders, lenders, utility representatives, and building tenants all attended the celebration and spoke in support of the project and the Green Bank’s overall contribution to the county’s greenhouse gas reduction goals.

Building tenants shared their pride in working in a clean, energy-efficient office building, and local elected officials described how the Green Bank is part of the county’s broader push to prioritize clean energy, reduce greenhouse gases, and fight climate change.

For more, see the Montgomery County Green Bank’s press release, as well as local news coverage:

• Local DVM: Montgomery County celebrates first green bank
• My MC Media: Montgomery County Green Bank to Help Local Energy Efficiency Investment
• American Fisheries Society: AFS Headquarters Building Energy Efficiency Improvements Recognized by Local County Government

By Coalition for Green Capital

As 2019 winds down, a promising new entrant into the world of green banks comes from New Zealand. This mission-driven financial institution, New Zealand Green Investment Finance Ltd. (NZGIF), reached a series of milestones during the past year and is poised to begin making its first clean energy investments in 2020.

NZGIF’s process started with an announcement from the government in December of 2018, and the independent institution was incorporated in April 2019. Throughout the southern hemisphere winter of 2019, NZGIF recruited a leadership team, including a CEO, Chief Investment Officer, Chief Operating Officer, and Head of Government Relations and Communications.

By the end of 2019, NZGIF has officially entered the investment market and is actively seeking projects to put a balance sheet of NZ$100 million to good use.

Like other institutions around the world designed based on the green bank model, NZGIF will invest capital in ways that reduce emissions, drive additional private investment, and generate economic benefits. They describe this in their own words in their materials:

NZGIF has four objectives.  We invest to accelerate emissions reductions.  Our investment will make a commercial return.  Our aim is to work with private investors, to mobilise private capital.  Finally, we aim to demonstrate market leadership in green investment.

As NZGIF seeks new investments in 2020, they plan to focus on sectors including transport, building energy efficiency, process heat in manufacturing, and agriculture. The goal is to find and invest in proven and mature technologies that can be rapidly scaled up with the benefit of the capital and technical assistance that NZGIF can provide.

At a recent event hosted by the Inter-American Development Bank, CGC, the Natural Resources Defense Council and Rocky Mountain Institute, NZGIF CEO Craig Weise described the design elements that will enable New Zealand Green Investment Finance to succeed:

“We were carefully designed to have the right components to do the job.  With NZ$100 million, we have both the mandate and the flexibility to use our balance sheet to mobilise private capital and structure deals that deliver green outcomes.  We are currently working with investors in the market who want to deliver green impact for themselves and their clients; they can bring private capital while we can help structure green products that suit our mandate and theirs.

New Zealand is unique in some ways, for example with our small domestic capital market, but the fundamentals of global green bank design are still relevant, such as independence, flexibility and a long-term view.”

Other green banks around the world have paved the way and shown the viability of this approach, including New Zealand’s global neighbor Australia. There, the Clean Energy Finance Corporation has deployed $5 billion in capital and mobilized $24 billion in private capital. The NZGIF is ready to follow this model to deliver investment capital, clean energy, and emissions reductions to New Zealand.