On May 28, the American Green Bank Consortium, in partnership with the Coalition for Green Capital (CGC) released its annual report Green Banks in the United States. The report discusses the evolution of Green Banks in the states and provides information on the changing trends in green bank design and project funding activities. Last year, over 30 trillion in funds were held in green or sustainable investments, a number which has been increasing each year and which now represents around a third of total assets under management worldwide. According to the report, green banks in the U.S. have stimulated over $3.67 billion of this capital into clean energy investments since 2011, with $676 million invested in 2018 alone at a 3.4 to 1 private/public lending ratio.
The report notes that green bank organizational structures are trending towards more flexible non-profits, allowing them to sit closer to the market and pursue larger and more diverse pools of capital. Green banks are becoming increasingly involved in financing projects focused on energy storage and resilience. Additionally, green banks are becoming more interested in financing clean energy projects that can impact low-to-moderate income consumers, recognizing that these markets can drive a significant growth in efficiency and renewables if the financing is structured correctly. The American Green Bank Consortium and CGC plan to release a report each year to chronicle the activities of green banks in promoting green investments. For a copy of the report, click here.