How Green Banks Help Cities Transition to Clean Energy

In the face of climate change crisis, it is urgent for policymakers at state, local, and city level to make transition to clean and renewable energy. However, the construction of renewable projects is usually capital-intensive and requires bank’s upfront investment. Green banks help these green projects by managing and investing public capital based on following principles: supporting small projects, de-risking new technologies, and reducing perceived risks. Existing green banks have already proven that their public investment can catalyze private co-investment, and these projects earn economic benefits for private investors and consumers. The green banks could be further empowered by the establishment of National Climate Bank.