Green Banks Launch Groundbreaking Partnership to Accelerate Clean Energy Investment Nationwide
FOR IMMEDIATE RELEASE: Monday, September 23, 2024
Contact: contact@solaris-strategies.com
U.S. Green Bank 50 Brings Green Banks Across the Nation Together to Coordinate Historic Wave of Clean Energy Investment and Provide Climate Solutions
Coalition of Nearly Forty Green Banks Invested Over $10 Billion into Communities in 2023 Alone
WASHINGTON – Nearly forty of the nation’s leading green banks, collectively responsible for more than $10 billion in new investments last year alone, announced on Monday the formation of U.S. Green Bank 50 (GB 50), a historic partnership between clean energy-focused public and nonprofit financial institutions. The announcement occurred during Climate Week NYC, highlighting green banks’ critical role in advancing clean energy and addressing the climate crisis.
U.S. Green Bank 50 will act as a hub for community-focused green banks working locally, regionally, or nationally to build and share best practices, coordinate and leverage resources, and support the collective needs of the rapidly growing green banking industry, which received sizable investment from the landmark Inflation Reduction Act. In doing so, the new organization will accelerate the growth of the U.S. green banking industry, speed up investment in clean energy and inclusive climate solutions nationwide, and further increase clean energy investments in lower-income and historically underserved and marginalized communities. The organization brings together green banks in nearly all 50 states, Washington, D.C., and Puerto Rico.
This announcement comes at an inflection point for climate action, thanks to the generational investments in the U.S. clean energy economy in recent years. On the heels of the Inflation Reduction Act (IRA) infusing $27 billion into public and nonprofit green lending institutions, state and local green banks are set to play a pivotal role in creating historic numbers of clean energy and manufacturing jobs while driving new opportunities for American communities. U.S. Green Bank 50 members plan to work collaboratively with the coalitions receiving the IRA grants to advance clean energy, climate, and justice goals nationwide.
“Over the past few years, the number of green banks in the U.S. has grown from less than a dozen to nearly 40 institutions working to kickstart innovations in the field of inclusive clean energy finance so Americans from every corner of the country can reap the benefits of solar, EVs, wind, batteries, heat pumps, and many other clean energy investments,” said Kirsten Stasio, CEO of the Nevada Clean Energy Fund, a founding U.S. Green Bank 50 member. “This new network of green banks will help communities across the nation meet critical funding and technical assistance needs. By joining together to create the U.S. Green Bank 50, we are more empowered to share best practices, collaboratively pioneer solutions, and scale our impact in our respective communities.”
Since the passage of the IRA, the number of state and local green banks has surged to nearly 50 across the nation, serving almost every state plus Puerto Rico. By organizing collectively to seize these opportunities, U.S. Green Bank 50 will support the expansion of green banking into even more communities so benefits reach more American households, small businesses, and local organizations, particularly those with historically limited access to clean energy financing.
The rapid growth of this industry has created new opportunities – U.S. Green Bank 50 represents a groundbreaking effort to bring together best practices for efficient and effective investment from across the country. For instance, more recently founded green banks, many of which serve states with historically less clean energy-focused investments, will have the opportunity to learn from their more established counterparts. GB 50 is built to support state and local green banks covering communities across all 50 states, and will likely gain members in the coming months. By encouraging collaboration, GB 50 provides peer learning opportunities to share tools, resources, and best practices for green banks to extend capital, engage proactively with communities, and maximize the impact of federal clean energy incentive programs, all in the pursuit of a mission to build and transform markets for clean energy deployment.
Green banks have emerged as a key bridge to help communities otherwise unable to secure capital from traditional financial institutions to invest in clean energy projects, with a particular focus on low-income and disadvantaged communities too often left behind in the clean energy transition
Examples of projects financed by green banks include:
Installing solar panels and energy storage on affordable housing complexes and houses of worship;
Electrifying school bus fleets;
Bringing new clean energy manufacturing jobs to underserved communities;
Expanding community solar programs to lower energy costs, especially in rural and low-income communities;
Building energy efficiency retrofits for schools, community centers, and religious institutions;
Installing electric vehicle charging stations in rural areas and disadvantaged communities; and
Affordable financing for solar, energy efficiency upgrades, heat pumps, and whole home electrification for low and moderate-income families.
SAMPLE PROJECTS & CASE STUDIES
“As one of the leaders of the first African American-led, community-driven community solar projects in the nation, we clearly understand the importance of a national network of green and climate banks like the U.S. Green Bank 50,” said Naomi Davis, founder and Board Chair of both the Green Energy and Justice Cooperative and Blacks in Green. “This past spring, after years of organizing our project, we received an award of $12.5 million in renewable energy credits which was the necessary equity to take our solar project to the next level. There was just one problem: no one would lend us $3.2 million to pay for fees to a large utility to connect our solar system to the grid and the 5% down payment for our renewable energy credits. Like buying a house or a car, you need the down payment and financing ready to go. Because Governor JB Pritzker created the Illinois Climate Bank, a $3.2 million participation loan for predevelopment costs through a private lender and the Climate Bank made it possible for our community solar project to proceed. When we complete the project and are successful, it will begin reducing our carbon footprint, reducing household energy costs, and reducing our racial wealth gap in Metro Chicago.”
Efficiency Maine’s finance products help move Mainers, the majority of whom live in rural, aging housing stock, toward energy-efficiency technologies. Richard Burbank, President of Evergreen Home Performance of Rockland, Maine says, “Evergreen's experience has shown that simple, accessible financing through Efficiency Maine is critical to helping homeowners move forward with comprehensive energy-saving projects, making the process smooth for both customers and contractors.” This has motivated homeowners like Heather Chandler of Westbrook, Maine, who says, “Financing offered by Efficiency Maine has been instrumental in enabling me to take on larger, more impactful projects and start saving right away. We need more of this in Maine!”
The Nevada Clean Energy Fund’s Clean School Bus Program is working with several school districts across the state to replace polluting diesel buses with clean electric ones. "I am confident that this program will help us save money on maintenance and fuel, improve air quality for our children, and offer performance benefits over traditional diesel and propane buses, including better acceleration, quieter operation, and superior performance on inclines,” said Seth Canning, Director of Transportation at Elko County School District. “NCEF’s $7.7 million federal grant, along with their support in navigating funding, assessing electric bus options, and developing implementation plans, has been invaluable as we work to bring these benefits to all our students, especially those in communities that need it most."
The Minnesota Climate Innovation Finance Authority (MnCIFA) pioneered a first-of-its-kind $4.7 million loan to the Heights Community Energy to build and operate a geothermal energy system for a new residential development, which is set to deliver 1,000 housing units on the East Side of Saint Paul. This geothermal project will provide clean energy-powered, lower-cost heating for residents of the Heights. “The Heights Community Energy project in Saint Paul is a prime example of what green banks can do — provide financing for a project to supply zero-carbon geothermal energy to a mixed-use development that traditional banking may not have supported. We applaud the creation of U.S. Green Bank 50 so more projects like this can get off the ground and benefit communities across the country,” said Russ Stark, Chief Resilience Officer of the City of Saint Paul, Minnesota.
The Columbus Region Green Fund invested in a solar project at Corban Commons, an affordable senior housing facility. The investment allowed the owners of the facility to access clean and affordable energy for their residents without the need to raise new capital. "The Green Fund saw the value in investing in solar projects like this, and because of their leadership, every dollar saved on our energy bills over the lifetime of these systems is translated into affordable rents for our residents," said Johnny Pitts, the CEO of Dayspring Christian Community Development Corporation, co-owner of Corban Commons. "More partnerships like ours mean more residents in Columbus and beyond will feel the environmental, economic, and community benefits of renewable energy."
GREEN BANK QUOTES
“We believe in an equitable transition to clean energy where everyone in our state has access to the benefits of climate solutions,” said Chanell Scott Contreras, President and CEO of Michigan Saves. “From our work in urban areas, to rural communities, to tribes and Native communities, our financing tools are building the future, improving public health, and creating jobs for Michiganders. Being part of GB 50 will allow us to collaborate with other green banks all over the country, share lessons we’ve learned, and build a thriving network of green banks everywhere.”
Andrew Kessler, President of NY Green Bank, a division of the New York State Energy Research and Development Authority said, “NY Green Bank is proud to be a founding member of GB 50 and we look forward to this expanded opportunity to strengthen our connections with other sustainability-focused institutions across the United States and share insights gleaned from more than a decade of operation. As the largest green bank in the nation, NY Green Bank has committed over $2.4 billion to a growing portfolio of green infrastructure projects that demonstrate the unique role that green banks play in the clean energy transition to fill financing gaps and set precedents that mobilize private sector capital as we deliver clean energy benefits to all New Yorkers.”
“Thanks to the leadership of Governor JB Pritzker, Illinois has nation-leading law and policy through the Climate and Equitable Jobs Act (CEJA) to accelerate our transition to clean energy,” said Chris Meister, Executive Director of the Illinois Finance Authority (IFA)/Climate Bank. “In the two full calendar years since Governor Pritzker named the IFA as the Climate Bank under CEJA, we have mobilized over $600 million in private capital to finance climate projects. Over 50% of these investments were made in or benefitted disadvantaged communities and individuals. Through the U.S. Green Bank 50, we will expand our partnership with green banks nationwide to maximize federal and philanthropic financial assistance to create good paying jobs and an equitable clean energy future for all of Illinois.”
Damon Burns, CEO of Finance New Orleans said, “Becoming a founding member of the U.S. Green Bank 50 is a momentous achievement for Finance New Orleans, and it exemplifies our dedication to making a lasting impact in the communities we serve. This partnership allows us to not only advance clean energy investments but also amplify our broader mission—ensuring that every New Orleanian, especially those in underserved areas, can access the financial resources needed to improve their quality of life. By aligning with other green banks across the nation, we’re not just financing projects, we’re building a more sustainable and equitable future for our city. This collaboration marks a turning point in how we mobilize transformative investments that create jobs, foster wealth, and strengthen the resilience of New Orleans.
“Thanks to Governor JB Pritzker, the Clean Energy Jobs and Justice Fund exists to provide flexible and non-predatory access to unique, creative financing options for disadvantaged communities and people of color in the State of Illinois who want to participate in the Green Economy,” said Chair Memuna Lee of the Illinois Clean Energy Jobs and Justice Fund. “We believe an equity-focused bank can be the lynchpin to their participation and ensure everyone benefits from the transition to a cleaner energy system. We look forward to working with the U.S. Green Bank 50 to reach this goal.”
“Green banks have a unique approach to financing clean energy and climate mitigation solutions. It is important for this group of experts working in this space to have a collective voice and ability to work cooperatively to address related challenges,” said Katherine Magruder, Executive Director of the Maryland Clean Energy Center.
Maryrose Myrtetus of the Philadelphia Green Capital Corp said, “We are excited to be able to offer financing that will help Pennsylvania residents improve their homes, lower their energy bills, and increase comfort and safety. We aim to deliver household savings and quality jobs with an equity-first approach to our climate transition. This isn't just about solar power; it's about empowering communities."
Jennifer Weiss of the North Carolina Clean Energy Fund said, “It’s our mission to foster an inclusive clean energy transition in North and South Carolina, while strengthening local economies through job creation and energy savings.”
“As the nation’s first green bank dedicated to decarbonizing affordable housing, the Massachusetts Community Climate Bank is working to advance an equitable clean energy transition for low- and moderate-income households,” said Maggie Super Church, Director of Policies and Programs for the Massachusetts Community Climate Bank. “We are excited to partner with U.S. Green Bank 50 and our peers across the nation, as we work together to scale up climate finance and accelerate investment in our clean energy future.”
“Collaborating with other green banks across the country has provided valuable insights as we’ve established the Efficiency Maine Green Bank,” said James Neal, Senior Program Manager for Finance Initiatives at Efficiency Maine. “The perspectives we’ve gained from our participation have been very useful as we shape our offers for Maine's communities. We’re particularly excited to expand our finance initiatives supporting heat pump projects that will reduce Maine's dependence on imported fuels and lower heating bills for homeowners and businesses across the state.”
“Even as an emerging organization, we have seen incredible demand for our clean energy programs, because they drive impact at the local level,” said Zach McGuire, Executive Director of the Columbus Region Green Fund. “The impact of investing in clean energy goes beyond just energy. The benefits generated by our programs are reducing utility costs, creating additive wealth, improving community resilience, reducing emissions, and creating good paying jobs .”
“As a relatively new nonprofit green bank serving in a complicated regulatory environment, our continued success in launching quickly to advance Indiana’s clean energy transition will be bolstered significantly by the formation of the GB 50,” said Alex Crowley, Executive Director of the Indiana Energy Independence Fund. “This allows us to leverage the combined experiences of partner green banks across the Midwest and US to help all Hoosiers, especially those underserved by current financing options, to adopt energy efficiency and renewable energy measures and help them save money and make our state a healthier place to live and work.”
“As a community-based lender serving rural and underserved populations, we understand the importance of ensuring access to clean energy lending for all Americans,” said Brian Depew, Executive Director of Center for Rural Affairs in Nebraska. “The GB 50 offers us the opportunity to network with peers across the country, share best practices, and establish green lending infrastructure in new communities where it does not yet exist, such as those we serve.”
“We’re excited to work closely with green banks across the country to help fund projects resulting in cleaner and more efficient use of energy and significant cost savings, especially for families in underserved and rural communities,” said Jason MacDuff, President of the Iowa Energy Fund. “Together, our GB 50 network will partner with the private sector, including community banks, credit unions, and lenders of all types, to unlock much needed capital for green projects that otherwise would not be completed, providing economic and health benefits to millions of Americans .”
“The GB 50 is a critical resource for new and nascent green banks,” said Dre Thompson, President of Groundswell Capital, the State of Arizona’s first green bank. “Through the partnerships we have found here we have been able to receive critical technical assistance, connect with national funders, and learn best practices from around the country to help build and sustain Arizona’s clean energy future.”
"Funding from the Inflation Reduction Act is critical to enable green banks to invest in local greenhouse gas reducing projects that reduce energy costs for struggling households and businesses”, said Beth Beloff, CEO of the New Mexico Climate Investment Center. "We are excited to be founding members of the GB 50 through which we will learn best practices from other green banks while collaborating on the development of new lending products and approaches.”
“Climate Access Fund is pleased to be an inaugural member of the GB 50. As a nonprofit green bank focused on increasing community solar opportunity in historically disinvested communities in Maryland, we look forward to exchanging ideas, strategies, and lessons learned with our fellow green banks through the GB 50 at this exciting moment in time for clean energy access,” said Lynn Heller, CEO of the Climate Access Fund.
“As a new green bank, SustainEnergyFinance is excited to transform Utah communities with equitable clean energy financing,” said Shawna Cuan, Co-Founder of SustainEnergyFinance. “Forming the U.S. Green Bank 50 is critical to strengthening our access to new investment opportunities and lending resources, accelerating the local impacts for our communities that have been most harmed and have the fewest resources. The U.S. Green Bank 50 is not just a hub of green banks–it will be a key driver to help us jumpstart Utah’s clean energy energy economy.”
Inaugural U.S. Green Bank 50 members include the following institutions – this list is updated regularly as new members are added:
California Infrastructure and Economic Development Bank
Center for Rural Affairs
Clean Energy Fund of Texas
Climate Access Fund
Collective Clean Energy Fund
Columbus Region Green Fund
Community Development Venture Capital Alliance
DC Green Bank
Efficiency Maine
Elemental Impact
Energize Delaware
Finance New Orleans
Groundswell Capital
Illinois Clean Energy Jobs and Justice Fund
Illinois Finance Authority (IFA)/Climate Bank
Inclusive Prosperity Capital
Indiana Energy Independence Fund
Invest Atlanta
Louisiana Clean Energy Fund
Maryland Clean Energy Center
Massachusetts Community Climate Bank
Michigan Saves
Minnesota Climate Innovation Finance Authority
Montgomery County Green Bank
Nevada Clean Energy Fund
New Mexico Climate Investment Center
NY Green Bank
NYCEEC
North Carolina Clean Energy Fund
NT Green Fund
Philadelphia Green Capital Corp
Puerto Rico Green Energy Trust
South Carolina Green Bank, in partnership with North Carolina Clean Energy Fund
Solar Energy Loan Fund (SELF)
Spruce Root
SustainEnergyFinance of Utah
Washington State Green Bank
Wisconsin Green Innovation Fund
U.S. Green Bank 50 is grateful to be sponsored by the Amalgamated Foundation, with generous support by various donors. Learn more about GB 50 at www.usgreenbanks.org.
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