{"id":268877,"date":"2023-07-22T16:17:11","date_gmt":"2023-07-22T14:17:11","guid":{"rendered":"https:\/\/climatescience.press\/?p=268877"},"modified":"2023-07-22T16:17:14","modified_gmt":"2023-07-22T14:17:14","slug":"are-green-investments-so-lame-they-need-special-green-banks-to-succeed","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=268877","title":{"rendered":"Are Green Investments so Lame they need Special \u201cGreen Banks\u201d to Succeed?"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From Watts Up With That?<\/a><\/p>\n\n\n\n

Essay by Eric Worrall<\/strong><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

If renewables are\u00a0almost always cheaper than coal<\/a>, as most greens repeatedly claim, why are special government funded banks required to drive investment?<\/p>\n\n\n\n

\n

Using green banks to solve America\u2019s affordable housing crisis \u2013 and climate change at the same\u00a0time<\/strong><\/p>\n\n\n\n

Published: July 18, 2023 10.30pm AEST<\/em><\/p>\n\n\n\n

Tarun Gopalakrishnan<\/a>\u00a0Research Fellow, Climate Policy Lab, Tufts University<\/em><\/p>\n\n\n\n

Bethany Tietjen<\/a>\u00a0Research Fellow in Climate Policy, The Fletcher School, Tufts University<\/em><\/p>\n\n\n\n

Seth Owusu-Mante<\/a>\u00a0Research Fellow in International Development, Tufts University<\/em><\/p>\n\n\n\n

Green banks are starting to draw attention in the U.S., particularly since the federal government\u00a0<\/em>announced its first grant competitions<\/a>\u00a0under a national green bank program to bring clean technology and more affordable energy to low-income communities.<\/em><\/p>\n\n\n\n

But installing more solar and wind electricity generation isn\u2019t the only way\u00a0<\/em>green banks<\/a>\u00a0can help.\u00a0<\/em><\/p>\n\n\n\n

Massachusetts is launching an innovative new green bank that could become a model as states try to manage two crises at once: lack of affordable housing and climate change.<\/em><\/p>\n\n\n\n

While most green banks focus on clean energy, the\u00a0<\/em>Massachusetts Community Climate Bank<\/a>\u00a0is specifically designed to boost the state\u2019s stock of sustainable, affordable housing. It comes at an opportune time: States can now tap into billions of dollars in new federal funding for green banks under the\u00a0<\/em>Inflation Reduction Act<\/a>.<\/em><\/p>\n\n\n\n

Read more:\u00a0https:\/\/theconversation.com\/using-green-banks-to-solve-americas-affordable-housing-crisis-and-climate-change-at-the-same-time-208098<\/a><\/p>\n<\/blockquote>\n\n\n\n

If you\u2019re wondering exactly what a green investment bank is, the OECD provides this less than helpful explanation;<\/p>\n\n\n\n

\n

Green investment banks<\/strong><\/p>\n\n\n\n

To leverage the impact of relatively limited public resources, over a dozen national and sub-national governments have created public green investment banks (GIBs) and GIB-like entities. GIBs are using innovative transaction structures, risk-reduction and transaction-enabling techniques, and local and market expertise to channel private investment, including from institutional investors, into domestic low-carbon, climate-resilient infrastructure.<\/em><\/p>\n\n\n\n

POLICY PERSPECTIVES:\u00a0GREEN INVESTMENT BANKS: LEVERAGING INNOVATIVE PUBLIC FINANCE TO SCALE UP LOW-CARBON INVESTMENT<\/em><\/p>\n\n\n\n

Investment is growing in renewable energy and energy efficiency, but not quickly enough to get the world on track to achieve zero net greenhouse gas emissions globally by the end of this century. Mobilising investment from the private sector will be essential to meet climate change goals. Governments can find ways to make efficient use of available public funding to mobilise much larger pools of private capital.<\/em><\/p>\n\n\n\n

The<\/em>\u00a0<\/strong>OECD report\u00a0Green Investment Banks: Scaling up Private Investment in Low-carbon, Climate Resilient Infrastructure<\/a>\u00a0aims\u00a0to provide policy makers with the first comprehensive study of publicly capitalised green investment banks (GIBs), examining the rationales, mandates and financing activities of this relatively new category of public financial \u00a0institution.<\/em><\/p>\n\n\n\n

It provides a non-prescriptive stock-taking of the diverse ways in which these public institutions are helping to leverage and catalyse private investment in domestic green infrastructure, with a spotlight on energy efficiency projects. Highlighting the role of GIBs within a broader policy framework to mobilise investment, the report also provides practical information to policy makers on how green investment banks are being set up, capitalised and staffed.<\/em><\/p>\n\n\n\n

A GIB is a public entity established specifically to facilitate private investment into domestic low-carbon, climate-resilient (LCR) infrastructure. Using innovative transaction structures, risk-reduction and transaction-enabling techniques, and local and market expertise, GIBs are channelling private investment into low-carbon projects. GIBs are facilitating investment in such areas as commercial and residential energy efficiency retrofits, rooftop solar photovoltaic systems and municipal-level, energy-efficient street lighting.\u00a0<\/em>Download the PDF version\u00a0<\/a><\/p>\n\n\n\n