The U.S. Environmental Protection Agency (EPA) recently proposed the creation of a so-called “Green Bank” to help leverage the power of financial institutions in solving the climate crisis.
In theory, the idea of Green Banks as an effective means of financing climate action is a good idea. However, as a by-product of the bi-partisan Inflation Reduction Act (IRA), this Green Bank model still faces political challenges.
Green Banks can be part of ‘the solution’ but must first escape fossil fuel interests to get the private sector to follow them into a brave new world of green financing.
“The climate test is simple. It requires jobs, justice and restoration of the environment,” says Edward Markey, U.S. Senator from Massachusetts. “An independent national green bank could be the answer. Funding could then be leveraged to advance green initiatives and infrastructure in disadvantaged communities while creating good, local jobs.”
With less than six months for EPA to distribute funds to eligible projects across the U.S., stakeholder input on the implementation, design and structure is currently being sought. Now is the time for the public to question the evolution and motives of the scheme, so that when a National Green Bank does arrive, it is truly transformational to the global economy, ecology and climate. [GWL]