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The development of green banks globally can help promote local responsibility for climate-resilient infrastructure, deploy clean energy technologies, utilise private sector capital, and shift the flow of capital towards climate-aligned investments – and away from fossil fuels.
Their development globally can help to achieve climate targets by financing low-carbon, climate-resilient (LCR) projects that create millions of jobs in new sectors, enabling investment into underserved and highly impacted communities.
Green banks offer a replicable model to organise and mobilise climate finance at the national level. They take a long-term approach to building nationally owned financial systems, promoting national ownership and national responsibility.
Globally, there are 27 operational green banks in 12 countries, primarily in developed countries. To date, they have invested over $24.5 billion of their own capital and attracted another $45.4 billion from the private sector into LCR projects. Importantly, another20 countries are currently pursuing green bank development, with nearly half in the early phases.
In 2020, the GFI, Rocky Mountain Institute (RMI) and Natural Resources Defense Council (NRDC) conducted an in-depth state-of-the-market analysis, interviewing and surveying 36 emerging and existing green banks to understand their processes, challenges and where support is most needed. State of Green Banks 2020 was the first of its kind, mapping out green bank activities and development efforts around the world. Based on the mapping of the needs expressed, the three organizations have designed a Platform that would offer the following services:
Navigation, gap-filling and knowledge products
Providing those working to establish green banks with external support and a “champion” function to drive progress. Creating and collating resources to help support green bank development.
Technical assistance connections
Matching aspiring green institutions with qualified technical assistance providers validated by the Platform, as well as sources of funding.
Expanding the community of practice
Where peers can exchange and learn from each other and share best practices in green bank design and operation.
The Green Bank Design Platform is a hub set up to assist countries with green bank development. It is designed to support jurisdictions to access the financial and technical resources needed to adapt this model to their unique circ*mstances.
Green banks allow countries access to climate finance, while enabling domestic ownership of project development and Nationally Determined Contributions (NDC) implementation.
The process of setting up a green bank can be a difficult process which typically lasts years. The GFI’s decade of experience of working with aspiring green banks has shown that the process can always benefit from technical experience, political support and directing appropriate financial resources.
The Platform’s primary beneficiaries are countriesseeking assistance in the process of green bank establishment, but will also add value to the entire green bank ecosystem.
State of Green Banks 2020
