The news came ahead of UN’s Conference on Climate Change COP24 being held in Katowice, Poland till mid this month, where governments are set to finalize the implementation guidelines of the Paris Agreement to hold the global average temperature increase to as close as possible to 1.5C.
Commenting on the progress, CEO of Coalition for Green Capital, Reed Hundt said meeting climate goals will require an unprecedented and immediate mobilization of capital. “Accelerating the formation of Green Banks in emerging economies can provide critical capacity to take on risk and leverage private capital to support large-scale low-carbon investment and enable countries, cities and states to meet their climate goals,” Hundt said.
Seconding Hundt’s opinion, Director of Strategy and Finance at NRDC’s Center for Market Innovation, Douglass Sims said Green Banks are financial institutions that have sustainability and low carbon development written into their DNA, which makes them an ideal vehicle to help countries achieve their Paris Agreement commitments and sustainable development goals.
“From a relatively small capital base, the members of the Green Bank Network are demonstrating that innovative investing in renewable energy, energy efficiency and green infrastructure is good for the climate, economic development and the bottom line,” Sims noted.
The announcement was made at the sixth annual Green Bank Congress, convened adjacent to the Bloomberg NEF Future of Energy Summit in Shanghai and hosted in partnership with the Center for Finance and Development, Tsinghua National Institute of Financial Research, Green Finance Committee (GFC) of the China Society for Finance and Banking, with support from Lujiazui Green Finance Development Committee and Shenzhen Green Finance Committee, the coalition stated in a statement.
The analysis, prepared by the Secretariat of the Green Bank Network using publicly available information, shows members are mobilizing as much as 10 dollars in total investment for every one dollar of public capital invested in clean energy projects. Investments to date have avoided 25 million metric tons of CO2EQ emissions.
Additional announcements at the Congress include: the Green Bank Network announces the addition of a new member in 2019 – the Rhode Island Infrastructure Bank, whose mission is to actively support and finance investments in the State’s infrastructure through a variety of means, including the issuance of bonds, originating loans and making grants, and the engagement with and mobilization of sources of public and private capital.
A new Climate Finance Facility has been formed in Southern Africa—a first-of-its kind, path-breaking application of the Green Bank model, adapted for emerging market conditions. Additional efforts to form new green banks, are underway in diverse jurisdictions in Latin America, Africa, Asia, and Europe.
To support acceleration of efforts to develop green banks in emerging economies, the Green Bank Design Summit will be sponsored by the Agence Française de Développement and held in Paris in March 2019.
The conference will enable public- and private-sector professionals working to design and set up green banks in emerging economies to access the lessons learned by countries that have already established green banks.