Utilities like Duke Energy and Xcel Energy have issued billions in green bonds to fund renewables development. Green banks in New York, Connecticut and other states are backing investments in distributed resources and energy efficiency. It appears much more institutional money wants in on the green opportunity.
As an initial exploration, this paper seeks to examine the sectors in which the Climate Bank may invest and the types of projects which it could finance. Taken together, the Climate Bank’s investments could have significant impact towards economy-wide decarbonization.
"There won’t be a transition to clean energy without a way to finance what could be the largest infrastructure project ever undertaken. Green banks — purpose-built financial institutions that facilitate funding of clean-energy projects — aim to lead the way."
The National Climate Bank would provide financing to regional, state and local green banks and invest in projects that reduce carbon emissions. The bill would also provide technical assistance for the start-up of new green banks around the country.
"It is high time to create a new, focused agency, a World Carbon Bank, that provides a vehicle for advanced economies to coordinate aid and technical transfer, and that is not simultaneously trying to solve every other development problem."
In January 2019, the District of Columbia passed the most ambitious clean energy legislation in the nation. However, local climate activists say the hard work is just beginning — they want to know who will lead the DC Green Bank and whether the law will benefit the least-privileged residents of the District.