"State of Green Banks 2020 shows the rapid emergence of this replicable approach to climate finance, grounded in local realities and priorities rather than international institutions."
LONDON (PRWEB) November 11, 2020
A new report finds that while governments and financial institutions are laboring hard to unlock the investment needed to meet climate and sustainable development goals, green banks can efficiently and effectively help overcome market barriers and channel investments into low carbon technologies, thereby accelerating global efforts to meet climate goals outlined in the landmark Paris Agreement.
The State of Green Banks 2020 report released today by Rocky Mountain Institute, Green Finance Institute, and the Natural Resources Defense Council provides a comprehensive review of green bank activities and their potential worldwide. A green bank often is a specialized financing institution that acts as the focal point for scaling up domestic investment in climate solutions.
The report reviews the impact and development of green banks in 36 countries. It aims to provide an understanding of green bank activities around the world that policymakers, funders, development finance institutions, and others can use to further the global green bank movement. It makes the case for green banks by highlighting the application of different green bank models across multiple geographies. In addition, the report will help guide the development of the Green Bank Design Platform, which aims to support governments and institutions in the establishment of green banks and other green financing vehicles.
The State of Green Banks 2020 report is being launched at the Finance in Common Summit on November 11th at 17:00 CET, during a panel titled “State of Green Banks 2020: a Global Movement in the Making.” The Summit, which will be attended by public development banks and Heads of State from around the world, will aim to raise the ambition for a sustainable post-COVID recovery to benefit societies and the planet. The panel, moderated by Rhian-Mari Thomas of the Green Finance Institute, will feature an overview of the report followed by a discussion with Muhammed Syed from the Development Bank of Southern Africa, Teddy Mugabo from the Rwanda Green Fund (FONERWA), and Susana Escária from Portugal’s Ministry of Environment and Climate Action. The panelists will share their experiences in setting up green banks and provide information on the role these institutions will play in helping their countries and regions achieve climate and development targets.
Currently, there are 27 operational green banks around the world which have invested more than $20 billion to date in new technologies ranging from rooftop solar to vehicle electrification and energy efficiency. In order to attract private investors into these markets, green banks use a range of financial instruments, including those that mitigate risk, and they are often the first to invest in new technologies and geographies. As a result, green banks have attracted over $2 of private investment, on average, for every $1 of own capital they invested into a project.
An additional 25 countries are exploring setting up a green bank, with interest noticeable across all regions and all country income levels. Many green finance institutions are being set up to attract private investment and concessional finance, as well as to achieve Nationally Determined Contributions (NDCs) Paris Agreement on climate change, with the expectation that they will also improve air and water quality and spur economic development through job creation.
Report findings were collected by Rocky Mountain Institute between June and September 2020, with 46 surveys and 15 interviews conducted with representatives from 36 countries. The State of Green Banks 2020 report is available here: https://rmi.org/insight/state-of-green-banks/
Speaking about the report, Dr Rhian-Mari Thomas, chief executive at the Green Finance Institute, says: “Over the recent years we have seen a global surge in green bank activity. There are already 27 operational green banks in 12 countries and a further 25 countries are exploring the possibility of establishing one themselves. As a result, green banks look set to play an important role in reaching global climate targets and sustainable development goals. What this report illustrates is that even though green banks are vital, obstacles still stand in the way of more being launched. We collectively have to shift the dial, to ensure that the political will and financing is there to allow more of these institutions to be established.”
Doug Sims, Director and Senior advisor at NRDC’s Green Finance Center, says: “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 rooted in national priorities and responsive to local needs. And to get to scale, it must connect to international networks. State of Green Banks 2020 demonstrates that 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, says: “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. State of Green Banks 2020 shows the rapid emergence of this replicable approach to climate finance, grounded in local realities and priorities rather than international institutions.”
Notes to editors
About the Green Finance Institute
The Green Finance Institute is an independent, commercially focused organisation, supported by Her Majesty’s Treasury, the Department for Business, Energy and Industrial Strategy, the Foreign, Commonwealth and Development Office and the City of London Corporation. As the UK’s principal forum for public and private sector collaboration in green finance, it is uniquely placed to mobilise capital to accelerate the domestic and international transition to a sustainable, net-zero carbon economy that is also climate resilient. The Green Finance Institute convenes and leads mission-led coalitions to identify and unlock barriers to deploy capital at pace and scale towards impactful, real-economy outcomes. For more information visit greenfinanceinstitute.co.uk and follow the Institute on Twitter and LinkedIn.
About NRDC (Natural Resources Defense Council)
NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Since 1970, our lawyers, scientists, and other environmental specialists have worked to protect the world's natural resources, public health, and the environment. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Bozeman, MT, and Beijing. Visit us at NRDC.org and follow us on Twitter @NRDC.
About Rocky Mountain Institute
Rocky Mountain Institute (RMI)—an independent nonprofit founded in 1982—transforms global energy use to create a clean, prosperous, and secure low-carbon future. It engages businesses, communities, institutions, and entrepreneurs to accelerate the adoption of market-based solutions that cost-effectively shift from fossil fuels to efficiency and renewables. RMI has offices in Basalt and Boulder, Colorado; New York City; Oakland, California; Washington, D.C.; and Beijing. For more information visit rmi.org and follow us on Twitter and LinkedIn.
Green Finance Institute: GreenFinanceInstitute@newgatecomms.com
NRDC: Jake Thompson, firstname.lastname@example.org
Rocky Mountain Institute: Alexandra Chin, T: +1 9732620002, email@example.com