New partnership to explore current and future impacts of green banks

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Clean energy, finance and environmental organisations have embarked on an initiative to review the current and future impact of green banks.

Non-profit organisations Rocky Mountain Institute and Natural Resources Defense Council (NRDC) have partnered with UK think tank The Green Finance Institute to identify the finance, technology, and policy requirements needed to expand green banks globally.

The three parties will inform the co-development of a Green Bank Design Platform, which will support governments and institutions to establish a green bank or similar green financing vehicle.

The aim is to help countries to attract private investment for low-carbon, climate-resilient solutions.

ClimateWorks Foundation is providing funding to support the initial review and platform development.

The report, A State of Green Banks 2020, will be published in November providing a comprehensive review of green banks worldwide and guiding the platform’s development.

The report will be based on a first-of-its-kind survey to review the impact and developments of green banks in 34 countries.

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The three organisations will help countries to identify the challenges in setting up green banks; understand the restrictions to green bank development within both emerging and developed markets; map the skills needed to overcome capability gaps; and determine the products, services and resources required to support the successful formation of green banks.

Paul Bodnar, managing director, Rocky Mountain Institute says: “Green banks have a track record of accelerating low-carbon, climate-resilient development, and are especially well-positioned to drive green recovery programmes. It is no surprise that so many countries are actively pursuing the model, which is why we are exploring a forum that would connect them with the expertise, best practices, and capital sources to succeed. RMI is proud to partner with the Green Finance Institute and NRDC to accelerate this historic shift in climate finance.”

Dr Rhian-Mari Thomas, chief executive, Green Finance Institute says: “Green banks are increasingly being recognised for their role in financing the transition to a low-carbon economy. In addition to investing in green innovations and infrastructure, they are able to channel large scale and global financing to local solutions. Unlocking barriers to deploy capital at pace and scale towards impactful real-economy outcomes underpins our work at the Green Finance Institute, as does collaboration, and we are excited to be working with strategic partners RMI and the NRDC on the Green Bank Design Platform.”

Doug Sims, director and Senior advisor at NRDC’s Green Finance Center says: “Green banks have a unique ability to jumpstart and accelerate financing for the investments that propel us toward our collective environmental ambitions of a climate-safe, healthy, resilient and prosperous future. They also help achieve inclusive social objectives such as creating jobs, building sustainable affordable housing, lowering energy costs, and adapting communities to withstand impacts from climate change. We’re thrilled to be working with RMI and the Green Finance Institute to globally scale these innovative institutions.”