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A survey conducted to understand the current and future impacts of green banks has found rapid growth in their numbers and importance in low carbon finance.

The State of Green Banks 2020 report, released by Rocky Mountain Institute, Green Finance Institute and the Natural Resources Defense Council, has found that financial institutions have invested over $24 billion in low-carbon technologies to date.

The report reviewed the impacts of green financing in 36 countries and found that some 25 countries are actively exploring new green banks.

Currently, there are 27 operational climate-friendly banks around the world that have invested in new technologies including rooftop solar to vehicle electrification and energy efficiency.

In order to attract private investors into these markets, green banks are using a range of financial instruments, including those that mitigate risk.

As a result, these banks have attracted over $2 of private investment, on average, for every $1 of own capital they invested into a project.

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The report will help guide the development of the Green Bank Design Platform, which aims to support governments and institutions in the establishment of climate-friendly investors and other green financing vehicles.

Doug Sims, director and senior advisor at NRDC’s Green Finance Center, said: “After mitigation and adaptation, mobilizing finance is the third pillar of the Paris Agreement and is the necessary precondition for the success of the other two. To be equitable and sustainable, finance has to be rooted in national priorities and responsive to local needs. And to get to scale, it must connect to international networks. In every region of the world, countries are turning to green banks to marshal resources in service of green and equitable transformation.”

Paul Bodnar, managing director at Rocky Mountain Institute, said: “Meeting the goals of the Paris Agreement represents a massive financing challenge for all nations adopting ambitious emissions targets and readying for the unavoidable impacts of climate change. The survey results show the rapid emergence of this replicable approach to climate finance, grounded in local realities and priorities rather than international institutions.”

Download the report to learn more about the findings.