“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.