First global green bank network sets to speed shift to clean energy
A group of six green banks and two leading non-profit groups are establishing a Green Bank Network to help meet the urgent need of increasing and accelerating investment in renewable energy and energy efficiency worldwide.
With nations around the world making new commitments to reducing heat-trapping pollution, more capital than ever will need to be deployed for clean energy solutions.
Green banks are public entities created to partner with the private sector to increase investment in clean energy and bring clean energy financing into the mainstream.
They are a relatively new phenomenon that has been successful in the UK, Australia, Japan, Malaysia, and several US states.
Reed Hundt, CEO of the Coalition for Green Capital, calls finance the foundation of the clean energy platform.
‘Public-private investment partnerships will grow the global economy, and provide affordable sustainable energy to everyone on the planet,’ Hundt says.
The founding partners of this major clean energy initiative are the UK Green Investment Bank, the Connecticut Green Bank, NY Green Bank, the Green Fund (Japan), Malaysian Green Technology Corporation, and Clean Energy Finance Corporation (Australia).
The banks have appointed the Natural Resources Defense Council (NRDC) and the Coalition for Green Capital (CGC), which are experienced in the development of green banks, to spearhead the creation of the network.
ClimateWorks Foundation has agreed to provide seed funding.
The Organization for Economic Co-operation and Development (OECD) will use its convening power to facilitate the sharing of experience between green banks and countries interested in creating them.
The network will increase the global impact of green banks by enabling them to collaborate more effectively, share and leverage individual bank experiences, publicise achievements, and grow the ranks of green banks worldwide.
Green banks represented at a summit in New York last year said they collectively expected to deploy over $40 billion (€36.5bln) in capital for investments in clean energy and energy efficiency projects over the next five years.