The Clean Energy Future Blog

By Coalition for Green Capital

“We need to leverage the local knowledge of these institutions and invest in solutions like green banks that can take this capital and blend it with international public and private finance.”

Washington, DC– In an opinion piece for the New York Times, BlackRock CEO Larry Fink calls on the international community to be bold in their approach to climate finance and supporting clean energy, specifically supporting green banks to leverage public and private capital.

Endorsing green banks as a proven method to leverage public-private partnerships, Fink says, “I believe it is possible to reinvent the existing multilateral development banks, multilateral agencies and climate funds so that they can channel grants and subsidies from developed countries more effectively. We need to leverage the local knowledge of these institutions and invest in solutions like green banks that can take this capital and blend it with international public and private finance.”

“We thank Mr. Fink for endorsing green banks and recognizing the critical role they play in fueling our transition to clean energy,” said Reed Hundt, CEO and the Coalition for Green Capital. “We know that the Clean Energy and Sustainability Accelerator, a federal green bank, would spur $10-100 in private capital for every dollar of public investment.”

The article calls on world leaders to reimagine climate finance and how economies can work toward achieving net zero emissions by 2050.

Fink writes, “Based on research by my company, BlackRock, stimulating $1 trillion per year of public and private investment to reduce emissions will require closer to $100 billion in grants or subsidies from countries that can afford it, like members of the Organization for Economic Cooperation and Development and China. While the figure seems daunting, especially as the world is recovering from the Covid pandemic, a failure to invest now will lead to greater costs later.”

Fink also warns of the financial costs of inaction or underfunding these initiatives from the onset. He says, “The climate disaster will not respect national borders. Without global action, every nation will bear enormous costs from a warming planet, including damage from more frequent natural disasters and supply-chain failures. Investing $100 billion in public funds annually over the next 20 years would prevent costs of at least 10 times that amount — the likely consequence if we fail to meet the 2050 target for net zero.”

Read the article here.

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By Coalition for Green Capital

“One of the Best Tools in the Country’s Toolbox for Ensuring a Just Energy Transition”

Washington, D.C.– A new report from the Climate Policy Lab at Tufts University outlines for lawmakers the role that a federal green bank would play in leveraging public-private investments to address climate change while steering investments to underserved communities facing the brunt of the climate crisis.

Calling on Congress to approve a federal green bank, Stephany Griffith-Jones and Kelly Sims Gallagher said in the report, “A federal financial institution can be used specifically to stimulate profitable projects that many private institutions may not at first find attractive, steer investments into underserved communities, and catalyze economic development in towns, cities, states, and regions across the United States (many of which are ignored by Wall Street). A federal green bank can be one of the best tools in the country’s toolbox for ensuring a just energy transition that supports communities being left behind with targeted investment.”

“We thank the Climate Policy Lab and the team at Tufts University for issuing this important report,” said Reed Hundt, CEO of the Coalition for Green Capital. “The policy brief clearly outlines the benefits of enacting a federal green bank and details the financial tools and techniques that the bank would utilize to deliver clean energy for communities across the country. The Clean Energy and Sustainability Accelerator enjoys support from a wide range of audiences including climate advocates, state and local leaders, and top academic experts. This is the year and now is the time to invest in a federal green bank and fuel our transition to clean energy.”

The report noted the federal green bank bills that have already been introduced in Congress by Representative Debbie Dingell and Senators Ed Markey and Chris Van Hollen as well as provisions in President Joe Biden’s Build Back Better plan to fund a federal green bank. They also explain the policy implications of passing a federal green bank and how the institution would support a nationwide network of state green banks.

“If enacted, this bank or accelerator would be a non- profit financial institution with up to $100 billion in capital and the mission of directing investment into transformative projects that create good jobs and mitigate both global warming and inequality. It would invest in every state through and alongside state green banks, many of which already exist. The Accelerator would establish a green bank in any state that did not already have one, creating a powerful network of local institutions supported by the national green bank.”

“This structure would be designed to unleash local energy, supported by a national organization that provides centralized support, technical expertise, and standardized instruments when appropriate.”

The policy brief also offers suggestions on the bank’s initial capitalization, principles to operationalize the bank, as well as financial tools to achieve desired outcomes.

Read the report here.

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By Coalition for Green Capital

Washington, D.C.— In response to the landmark climate legislation signed into law this week, the Coalition for Green Banks (CGC) issued the following statement:

“We’re thrilled that the creation of two new green banks was included in the historic climate legislation passed by the Illinois state legislature and signed by Governor Pritzker,” said Jill Bunting, Deputy Director of the CGC. “Both the Climate Bank and the Clean Energy Jobs and Justice Fund will help fund clean energy projects throughout the state while surging jobs and much needed investment to frontline communities. We applaud state leaders for their work on this landmark initiative and congratulate them on joining over a dozen other states in leveraging a green bank model to spur clean energy infrastructure. As more states join the network of green banks, funding for a national green bank— as currently included in the budget reconciliation package— will be critical for the success of state green banks like these.”

Background

With enactment of this bill, Illinois joins more than a dozen states including Florida, New York and Connecticut that use publicly funded green banks to spur investment for renewables, energy efficiency and other projects, especially in communities that have been underrepresented in the clean energy economy.

Legislation signed into law this week established two financing mechanisms modeled after green banks. The Clean Energy Jobs and Justice Fund, will focus on equitable lending and supporting clean energy projects in low income and marginalized communities. The Illinois Finance Authority Climate Bank will leverage public-private partnerships to fund clean energy projects across the state.

The creation of a national green bank, the Clean Energy and Sustainability Accelerator, is currently under consideration by Congress as part of the budget reconciliation package and was approved this week by the House Committee on Energy and Commerce.

By Coalition for Green Capital

Washington, DC– The Coalition for Green Capital issued the following statement after the House Committee on Energy and Commerce completed its markup of the budget resolution; the legislative language is expected to permit the funding of a federal green bank, or Clean Energy and Sustainability Accelerator:

“We are one step closer to the Clean Energy and Sustainability Accelerator becoming a reality,” said Reed Hundt, CEO of the Coalition for Green Capital. “The Accelerator is widely recognized as a critical way to drive our transition to clean energy. The House has passed the Accelerator three times and with bipartisan support, and it is backed by climate and social justice advocates, governors on the front lines of the climate crisis and nearly 150 mayors from across the country. The Accelerator will leverage public-private partnerships to direct clean energy investments at disadvantaged communities, workforces, children afflicted by environmental harm, and consumers burdened by high costs of the existing energy platform.”

Background

President Biden included the Clean Energy Accelerator, a national green bank that would inject funding into state green banks, as a key climate provision in the American Jobs Plan. The U.S. House passed the bipartisan Accelerator as part of the INVEST in America Act (H.R. 3684), marking the third time the Accelerator has been passed by the chamber. In a July letter to congressional leaders urging action on climate infrastructure, more than 140 mayors — a group known as “Climate Mayors” — called for the creation of a national green bank. Earlier this month, 10 governors on the front lines of the climate crisis called on Congress to pass the Clean Energy & Sustainability Accelerator, because doing so would be one of “the most impactful actions to protect our climate” and environmental groups echoed that message.

The Coalition for Green Capital has been the advocate of green bank creation since its founding in 2010. Currently there are 22 green banks in 16 states and the District and 21 more green banks in the pipeline. Most recently green banks were created in Maine and Colorado. Legislation to fund them at necessary scale is pending in the House (H.R. 806, a bipartisan Clean Energy & Sustainability Accelerator introduced by Rep. Debbie Dingell (D-MI), Rep. Don Young (R-AK) and Rep. Brian Fitzpatrick (R-PA) and (S. 283, creating a National Climate Bank, introduced by Massachusetts Senator Ed Markey and Maryland Senator Chris Van Hollen).
 

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By Coalition for Green Capital

Washington, D.C.– In a new letter to Congress, a coalition of 20 organizations called on Congress to pass the Clean Energy and Sustainability Accelerator and “make transformational investments in our nation’s infrastructure with the Build Back Better Act.” The Accelerator was included in the budget resolution passed by both the House and Senate last month.

“We’re pleased to see this coalition of leading environmental and public health groups recognize the importance of the Accelerator, which will generate jobs and bring critical investment to disadvantaged communities across the country,” said Reed Hundt, CEO of the Coalition for Green Capital.  

In their letter, the coalition said, “The climate investments included in the Build Back Better Act put us on a clear path to cut climate pollution in half by 2030 by creating new clean energy tax incentives, transforming our power sector to achieve 100% clean electricity and investing in communities too often left behind. Anything less fails the Climate Test that science and this moment demand. If we don’t act now, communities will face even more devastating and extreme droughts, fires, hurricanes, flooding and storms.”

The groups called for Congress to fund $27 billion for the Federal Green Bank, naming the Accelerator as a key component to directing clean energy investments to communities that have long borne the brunt of fossil fuel pollution.

The letter was signed by Black Millennials for Flint, the Center for American Progress, the CLEO Institute, the Climate Action Campaign, Climate Power, the Climate Reality Project, Earthjustice, the Environmental Defense Fund, Evergreen Action, Generation Progress, Interfaith Power & Light, the League of Conservation Voters, the National Audubon Society, the National Hispanic Medical Association, the National Wildlife Federation, the Natural Resources Defense Council, NextGen America, Poder Latinx, the Sierra Club, and the Wilderness Society.

Click here to read the letter.

Background

President Biden included the Clean Energy Accelerator, a national green bank that would inject funding into state green banks, as a key climate provision in the American Jobs Plan. The U.S. House passed the bipartisan Accelerator as part of the INVEST in America Act (H.R. 3684), marking the third time the Accelerator has been passed by the chamber. In a July letter to congressional leaders urging action on climate infrastructure, more than 140 mayors — a group known as “Climate Mayors” — called for the creation of a national green bank. Last week, 10 governors on the front lines of the climate crisis called on Congress to pass the Clean Energy & Sustainability Accelerator, because doing so would be one of “the most impactful actions to protect our climate.”

The Coalition for Green Capital has been the advocate of green bank creation since its founding in 2010. Currently there are 22 green banks in 16 states and the District and 21 more green banks in the pipeline. Most recently green banks were created in Maine and Colorado. Legislation to fund them at necessary scale is pending in the House (H.R. 806, a bipartisan Clean Energy & Sustainability Accelerator introduced by Rep. Debbie Dingell (D-MI), Rep. Don Young (R-AK) and Rep. Brian Fitzpatrick (R-PA) and (S. 283, creating a National Climate Bank, introduced by Massachusetts Senator Ed Markey and Maryland Senator Chris Van Hollen).

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By Coalition for Green Capital

WASHINGTON, D.C.– In a new letter to congressional leadership, ten governors on the front lines of the climate crisis are calling on Congress to pass the Clean Energy & Sustainability Accelerator, or federal green bank, into law, because doing so would be one of “the most impactful actions to protect our climate.” The Accelerator was included in the budget resolution passed by the Senate and House last month. The letter was signed by Governors Gavin Newsom (CA); Ned Lamont (CT); David Ige (HI); Janet Mills (ME); Steve Sisolak (NV); Kathy Hochul (NY); Kate Brown (OR); Tom Wolf (PA); Dan McKee (RI); and Jay Inslee (WA).

“Each of the elements of the Build Back Better Agenda are worthy of inclusion in an infrastructure package,” wrote the governors, “but as Governors of states on the front line of the climate crisis, we place particular emphasis that the combined package includes the most impactful actions to protect our climate.”

The governors are urging Congress to “establish an accelerator to mobilize private investment into distributed energy resources; retrofits of residential, commercial, and municipal buildings; and clean transportation.” 

They referenced extreme climate events currently impacting much of the country and the recent Intergovernmental Panel on Climate Change report in calling for congressional action.

“Climate change is intensifying the wildfires that burn in the West, hurricanes that threaten the East, and extreme heat that endangers people and animals throughout the country. Now is the time for bold climate action,” they wrote. “The most recent Intergovernmental Panel on Climate Change report details what we already know – the window for preventing irreversible climate consequences is closing and we need to act quickly and comprehensively.”

“We thank these governors representing nearly 30% of the American population for reinforcing the urgency of this moment and recognizing the unique role the Accelerator will play in moving quickly and effectively to bring green investments to frontline communities,” said Reed Hundt, CEO of the Coalition for Green Capital. “State and local leaders are facing the consequences of climate change head on and they know that creating a national green bank will create millions of jobs, fuel our economic recovery and leverage public-private partnerships to invest in clean energy projects.”

Read the letter here.

Background

President Biden included the Clean Energy Accelerator, a national green bank that would inject funding into state green banks, as a key climate provision in the American Jobs Plan. The U.S. House passed the bipartisan Accelerator as part of the INVEST in America Act (H.R. 3684), marking the third time the Accelerator has been passed by the chamber. In a July letter to congressional leaders urging action on climate infrastructure, more than 140 mayors — a group known as “Climate Mayors” — called for the creation of a national green bank.

The Coalition for Green Capital has been the advocate of green bank creation since its founding in 2010. Currently there are 22 green banks in 16 states and the District and 21 more green banks in the pipeline. Most recently green banks were created in Maine and Colorado. Legislation to fund them at necessary scale is pending in the House (H.R. 806, a bipartisan Clean Energy & Sustainability Accelerator introduced by Rep. Debbie Dingell (D-MI), Rep. Don Young (R-AK) and Rep. Brian Fitzpatrick (R-PA) and (S. 283, creating a National Climate Bank, introduced by Massachusetts Senator Ed Markey and Maryland Senator Chris Van Hollen).

ABOUT COALITION FOR GREEN CAPITAL

The Coalition for Green Capital (@CGreenCapital) is a non-profit with a mission to halt climate change by accelerating investment in clean energy technologies and by advocating for, creating and implementing green bank institutions. Green banks are a proven finance model that uses public and philanthropic funds to mobilize private investment in renewable energy, energy efficiency and other decarbonization technologies. For over a decade, the Coalition for Green Capital has led the Green Bank movement, working at the federal, state and local level in the U.S. and in countries around the world. For more information, visit: https://coalitionforgreencapital.com/.

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