Diving certificate:
- This week, the first national green bank in the United States opened. It is operated by the nonprofit Coalition for Green Capital and has over $5 billion in funding from the Inflation Reduction Act, the Group announced on August 22.
- CGC, which also operates under the name American Green Bank Consortium, said it will use the IRA funds to make direct and indirect investments in clean energy, leveraging a network of state and local green banks, the press release said.
- The Environmental Protection Agency first chose CGC to help establish a national green bank in April by awarding the group $5 billion from the National Clean Investment Fund as part of a $20 billion greenhouse gas reduction fund. The greenhouse gas reduction fund was part of the Inflation Reduction Act of 2022, which included $369 billion in clean energy grants.
Diving insight:
CGC said the EPA funding will enable the organization to invest directly in qualified clean energy projects and contribute to the creation of a “self-sustaining nationwide network of state and local eco-banksCommunity lenders and community partners. As the American Green Bank Consortium – a membership organization for green banks – reported, its members invested $10.6 billion in 2023, including $5.2 billion in public investments and $5.4 billion in private capital, according to a Report also published on August 22.
Reed Hundt, CEO and co-founder of CGC and former chairman of the Federal Communications Commission and former chairman of CGC, said Thursday’s announcement kicked off a process that will release the EPA funds to allow the bank to build its staff, make investments and begin building a network of green investors in every state.
“Finally, our vision has officially become a reality. The country’s first national green bank is open,” Hundt said in the Aug. 22 press release. “It’s time for public-private investment to combine with U.S. Department of Energy tax credits and loans. Those are the three ways this administration will win the fight against catastrophic climate change and fight for social justice in every American community.”
The bank expects to use the EPA grant to invest a total of $21.1 billion in public-private projects to promote clean energy in the first year, the statement said. Hundt said the bank has already hired 23 employees – a number expected to double by the end of the calendar year – and has more than $10 billion worth of projects in the pipeline.
Bryan Garcia, chairman of the CGC board and president and CEO of the Connecticut Green Bank, thanked the EPA for the “methodical, comprehensive and extensive process” that resulted in the United States’ first national green bank.
“We have no time to waste and must work with our network of green banks across the country to mobilize private investment, especially in underserved communities, in projects that reduce greenhouse gas emissions and air pollution and deliver meaningful benefits – such as lower energy costs for families, creating jobs in our communities, improving public health and growing the green economy,” Garcia said in Thursday’s press release.
CGC also announced the national green bank’s first team on Thursday, including several veterans of the green economy and renewable energy. In addition to Hundt and Garcia, the team includes, according to the press release:
- Chief Network Officer Stephen Brown, founder and CEO of the Texas environmental bank Clean Energy Fund of Texas;
- Chief Impact Officer Jessica Buendia, previously vice president of sustainability at national nonprofit Dream.Org;
- Chief Operating and Compliance Officer Jeff Diehl, a 40-year financial industry veteran who previously served as CEO of Rhode Island Infrastructure Bank;
- Chief Capital Officer and Head of Investments Alfred Griffin, former President of New York Green Bank;
- Chief Investment Officer Michael Hoffman, former Senior Managing Director of the Blackstone Group and co-head of Riverstone’s renewable energy funds;
- Eli Hopson, Chief Administration and Development Officer, most recently first CEO of the DC Green Bank;
- CFO Sanjeev Kumar, a 25-year veteran of the renewable energy industry with two successful IPOs on his resume;
- Chief of Staff Daniela Nyiri; a campaign and lobbying veteran who built the greenbankmovement.org database; and
- General Counsel and Chief Strategy Officer David Pettit, former Deputy General Counsel at Xcel Energy.
The bank’s application helped build a coalition of 18 subrecipients, including 16 state and local green banks and two national nonprofits. The national green bank will also help fund and support a network of 191 other participating partners “to develop a national pipeline that can equitably advance clean energy adoption.” according to his website.
