What’s a Green Bank?

Mission-Driven Banking

Green banks represent a shift in the overall mission of banking, moving away from solely generating profit towards creating lasting and measurable public impact. Like your average retail bank, green banks lend money to consumers and businesses. Green banks focus on creating social and environmental benefits through accessible lending programs that can power energy efficiency upgrades for homes and buildings, direct investment loans that effectively deploy capital for sustainable infrastructure, no-cost down solar installation loans, and more. Simply stated, green banks exist to provide a financial platform for accessible and rapid funding for climate solutions for homes, buildings, and businesses.

Capital from loan repayment is recycled to cover the operating fees of the green bank and create opportunities for further growth. Green banks provide a direct avenue for fighting climate change, providing homeowners, businesses, and buildings with a direct line of capital cheaper than traditional financing options to enable a cleaner future. Green banks break down barriers to investments for  the development of sustainable projects. They utilize a range of financial tools to deploy capital for small and medium scale development projects. 

Why Do Green Banks Matter?

There are a number of states and cities in the United States that operate Green banks to drive clean energy development, including Connecticut, New York, and Washington DC. These green banks are set up in various ways, typically taking the form of either a government-owned or quasi-public bank created through government funding that then leverages private money to fund projects. Green banks now exist in over a dozen countries and 15 U.S. states, reducing greenhouse gas emissions through their public impact programs. Over the last decade, green banks in the U.S. have created over $7Bn in investments, with nearly $1.7B in 2020 alone. “A US national green bank stocked with $100bn could create $884bn in public and private investment over ten years, estimates the Coalition for Green Capital, a non-profit organisation. That estimate is validated by the Connecticut Green Bank, the US’s first green bank, where since 2011 every $1 of public money deployed by the bank has resulted in $8 in private investment (“Why Governments are turning to green banks to accelerate the energy transition,” 2021).

The First of Its Kind

The Connecticut Green Bank, founded as the nation’s first state green bank in 2011, provides impactful and affordable services to finance green energy upgrades. They have attracted billions worth of investments into the state’s economy, mostly through private investments. Connecticut Green Bank has successfully deployed their Green Energy Solutions to homes, buildings, towns and cities, helping more than 50,000 families, businesses and nonprofits reduce greenhouse gas emissions while receiving reduced energy costs.

There is a clear need and pathway for private finance to reduce carbon emissions, but this will require a stark transformation in our nation’s energy systems and usage.  This process will require significant investments in expanding clean energy infrastructure and green banks could be one of the main catalysts in leading this acceleration. The Connecticut Green Bank is currently offering a crowdfunding raise on Raise Green to further democratize their business model. By having the public invest in their company, the Connecticut Green Bank hopes to amplify awareness of their mission and increase their ability to deliver affordable loans for green energy solutions. Currently, they offer a variety of programs that help to reduce greenhouse gas emissions.

Green Energy Solutions from Connecticut Green Bank

Connecticut Green Bank’s programs provide green energy upgrades for the following: 

1. Homeowners - Help homeowners identify energy improvements that result in greater financial savings and reduced emissions. 

2. Multifamily Savings - Offer technical assistance and project financing options such as pre-development loans to increase property value and reduce tenant utility costs. 

3. Building Owners - Allow building owners to install solar with no money down.

4. Residential/Commercial Contractors - Help contractors meet the needs of their customers through long-term financing options that make green upgrades possible. 

5. Capital Providers - Provide opportunities to partner with Connecticut Green Bank to help accelerate the green energy movement.

For more information on their offering, visit the Raise Green Marketplace or Connecticut Green Bank.

This offering is through CGB Green Liberty Notes, LLC, a wholly owned subsidiary of the Connecticut Green Bank.

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This Blog is for discussion purposes only, expresses the views of Raise Green, and is not investment research. This is not investment or tax advice, and does not constitute a solicitation to sell or an offer to buy any securities. Certain information is from or links are to third party sources. Although they are believed to be reliable, we do not guarantee their accuracy, completeness or fairness. Raise Green is a licensed Funding Portal with the SEC and FINRA, and is not a Municipal Advisor. Prior to being approved to list a company on the Raise Green portal, a diligence review is completed. Prior to investing. investors must sign up for an account on the portal. Raise Green does not provide tax, accounting or legal advice. Investing in crowdfunded offerings involves risk and you should review the risks of a particular investment prior to investing. You are strongly encouraged to consult your professional advisors before investing. Go to www.raisegreen.com for additional information on services, the funding portal, regulation, and investment risks. Or, direct inquiries to info@raisegreen.com. Copyright © 2021.