TOKYO (October 26, 2016) – The Green Bank Network announced that in its first two years, the Network’s six founding members have closed transactions expected to mobilize over US$ 22 billion for clean energy projects around the globe, putting them on pace to exceed their collective goal of US$ 40 billion over five years announced in 2014. Green Bank Network members are mobilizing as much as 8 dollars in total investment for every one dollar of public capital invested in clean energy projects.
Green banks are public entities created to partner with the private sector to increase investment in clean energy and bring clean energy financing into the mainstream. The members of the Green Bank Network are investing across the technology spectrum, including on and offshore wind, solar, energy efficiency, low carbon vehicles, combined heat and power, LED street lighting, geothermal and energy storage. They are financing at all scales – from multibillion dollar offshore wind farms to energy efficiency and solar in low income housing – and the green bank model is already succeeding at bringing in more private investment to clean energy projects.
This global group of green banking and financial institutions includes Clean Energy Finance Corporation (Australia), Connecticut Green Bank, Green Finance Organisation (Japan), Malaysian Green Technology Corporation, NY Green Bank, and UK Green Investment Bank. The banks have appointed the Natural Resources Defense Council and the Coalition for Green Capital to spearhead the creation of the network using a grant from ClimateWorks foundation.
The group presented an update of network activities in Tokyo at the Organisation of Economic Cooperation and Development’s 3rd Annual Green Investment Financing Forum (GIFF). The GIFF was held in the days following the 4th Annual Green Bank Congress, which was hosted by the Japanese Ministry of the Environment and the Green Finance Organisation (Japan).
In FY 2015-16 alone, the Australian Clean Energy Finance Corporation made 15 new investment commitments of AU$837 million [US$ 643 million], including projects with a total value of AU$2.5 billion [US$1.91 billion].The UK Green Investment Bank’s Offshore Wind Fund is now the UK’s largest renewable energy fund. Projects supported by Malaysia’s Green Technology Corporation have led to the creation of over 4,200 jobs. The Connecticut Green Bank has mobilized just under US$1 billion for energy efficiency and renewable energy systems since its formation five years ago by creating several innovative structures to attract private capital to the residential and commercial-scale clean energy marketplace. Japan’s Green Finance Organisation is investing in projects that not only reduce emissions, but also stimulate local economies. NY Green Bank, the largest green bank in the U.S., has made investments in New York supporting clean energy projects with a value of US$953 million which are expected to reduce greenhouse gas emissions by up to 4.2 million metric tons, the equivalent to removing over 49,000 cars off the road for 19 years.
As existing green banking institutions continue to grow and adapt to meet market needs, new green banks are being formed. Ma Jun, Chief Economist at People’s Bank of China announced that 12 of China’s provinces are launching green banks modeled on the UK Green Investment Bank. The Indian government is in the process of considering a proposal to create a Green Bank of India. Green banks are also under consideration in Canada, Chile, South Africa and at least a dozen U.S. states. Also, the first “local green bank” has been formed by Montgomery County Maryland, which expects to launch its first programs early in 2017.
Ahead of events in Tokyo, the Green Bank Network launched a new website at www.greenbanknetwork.org, which contains profiles on each of its member banking and financial institutions, relevant news and events, and a first-of-its-kind Knowledge Center containing reports, slide decks, webinars and other resources related to green banking.
Looking forward to 2017, the Green Bank Network announced plans to increase investment, collaborate closely to benefit from each other’s experience, support other emerging green banks, and work with the OECD in launching its new Centre on Green Finance and Investment – a new research hub for low carbon and resilient investment.
Takejiro Sueyoshi, CEO of Green Finance Organisation (JAPAN), host of the Green Bank Congress on Oct-11 in Tokyo, said: “As the Paris Agreement was becoming into effect very soon, the timing of this year`s Congress was perfect. With earnest participations and lively discussions by all member green banks and others, the Green Bank Congress 2016 was another success after Edinburgh, New York, and Kuala Lumpur. Many thanks again to all of you from Japan`s Green Bank.”
Syed Ahmad Syed Mustafa, Vice President of GreenTech Malaysia, said: “The Tokyo events were simply nourishing…the ideas and thoughts from leading players and experts have given a better perspective on the pressing issues and opportunities in green investments. It was also pleasurable and rewarding to connect with GBN colleagues and meet new contacts.”
Alfred Griffin, President of NY Green Bank, said: “As one of the six founding Green Bank members, we are very pleased with the progress the network has made since its launch last December. The collaboration between network members has provided great insight, guidance, and clarity on various approaches to driving creative capital solutions to expand clean energy financing not only in New York but around the world.”
Gavin Templeton, Head of Sustainable Finance at UK Green Investment Bank plc (GIB), said: “Climate finance has taken centre stage post-Paris as the global effort to decarbonise the economy has accelerated. The sharing of best practice and the cross fertilisation of ideas made possible by the congress has never been more vital.”
Bert Hunter, Chief Investment Officer of Connecticut Green Bank, said: “We’re very excited about the information sharing opportunities the Green Bank Network affords. Now countries around the world can accelerate progress toward their green investment goals by drawing on the successes of Green Bank Network members.”
Oliver Yates, Chief Executive Officer (CEO) of the Clean Energy Finance Corporation (Australia), said: “It’s clear we all have a significant emissions reduction challenge ahead of us. We are delighted to share our experience with similar institutions to help increase the global reach of financing for cleaner power solutions and better built environments. We are proud to be a founding member of this global alliance and look forward to working with network members to help further transform clean energy investment.”
Reed Hundt, CEO of the Coalition for Green Capital, said: “Green banks join up public capital with private investment to build a clean power platform. In Tokyo the global Green Bank Network took a big step toward creating this critical finance tool in every country around the world. There’s not a moment to lose in the battle against climate change.”
Douglass Sims, Director of Strategy and Finance at NRDC’s Center for Market Innovation, said: “As existing green banks develop and new green banks are established around the world, the Green Bank Network is set to grow as a platform for knowledge sharing and collaboration for these institutions. The events in Tokyo positioned the Green Bank Network to move into its next stage of development with strong forward momentum.”
About the Green Bank Network
The Green Bank Network (GBN) is a membership organization formed to foster collaboration and knowledge exchange among existing Green Banks, enabling them to share best practices and lessons learned. The GBN also aims to serve as a source of knowledge and a network for jurisdictions that seek to establish a Green Bank. Learn more at www.greenbanknetwork.org/about-gbn.