Green bank financing has emerged as a vital tool for channelling public funds into private investments in green energy and climate transition worldwide, including at the state and local levels in the United States. With the potential to play a significant role in mobilising the estimated USD 27 trillion required for climate investment in the country by 2050, the report showcases how well-coordinated and strategically targeted green bank financing can advance environmental justice and contribute to achieving net-zero greenhouse gas (GHG) emissions.
To reach the ambitious goal of net-zero emissions by 2050, the U.S. requires substantial investment in various vital technologies. The estimated investment needed for these technologies exceeds USD 1 trillion, with a significant portion directed towards disadvantaged communities.
Green bank financing is poised to be critical in unlocking this investment potential. It can mobilise more than 12 times the Greenhouse Gas Reduction Fund (GHGRF) public investment over a decade by leveraging appropriate financing strategies and private co-investment. The analysis reveals that targeting leveraged green bank financing towards the 11 identified technologies could yield significant benefits.
Over 10 years, such investments could create 380,000 direct jobs, generate USD 30 billion in cost savings over the lifetime of new investments, and contribute to reducing air pollution in disadvantaged communities, thereby preventing early deaths.
