This event described the relatively new phenomenon of publicly-capitalised green investment banks and examines why public green investment banks are being created and how they are mobilising private investment.
Investment is growing in renewable energy and energy efficiency, but not quickly enough to get the world on track to achieve zero net greenhouse gas emissions globally by the end of this century. Governments need to find ways to make efficient use of available public funding to mobilise much larger pools of private capital. To leverage the impact of relatively limited public resources, 13 national and sub-national governments have created public green investment banks (GIBs) and GIB-like entities (as of December 2015).
Governments are tailoring their GIBs based on their unique national and local contexts. GIBs and GIB-like entities have diverse rationales and goals including meeting ambitious emissions targets, supporting local community development, lowering energy costs, developing green technology markets, creating jobs and lowering the cost of capital.
GIBs are relevant for both developed countries and emerging economies as a tool to help meet domestic targets for emission reductions, technology and infrastructure deployment, and green investment. The creation of a GIB can send a signal to the marketplace and other countries that a country or region is seeking to become a leader in scaling up private low-carbon investment.
The OECD Secretariat would like to thank Bloomberg for supporting the OECD’s work on green investment banks. We would also like to thank the Japanese Ministry of Finance for their support for the activities of the Environment Directorate on “Public Policies for Facilitating Green Long-Term Infrastructure Investment”.
|Closing remarks by Jonathan Pershing, Principal Deputy Director of the Office of Energy Policy and systems Analysis, U.S. Department of Energy|
GREEN INVESTMENT BANKS: POLICY PERSPECTIVES
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