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In a time of market uncertainty, green banks across the globe are continuing to catalyze investment in technologies and infrastructure that will help drive long-term, sustainable growth. These investments are leading some of Green Bank Network’s member banks to gain recognition for their contributions to increasing the flow of finance towards low emissions projects.
In the United States, the Connecticut Green Bank was honored as a recipient of the 2022 State Leadership in Clean Energy Awards for its Green Liberty Bond program. According to the judges from the Clean Energy States Alliance (CESA), a national nonprofit coalition of public agencies working together to advance clean energy, the Green Liberty Bond program is “an interesting, innovative, and highly creative way to generate revenue for clean energy projects.”
Australia’s Clean Energy Finance Corporation was named Global Sustainable Investor of the Year and Asia Pacific Institutional Investor of the Year at the inaugural Agri Investor Awards. The awards recognize leadership in driving investment towards sustainability-focused, low-carbon agriculture across a diverse range of investment opportunities and low-emissions energy technology solutions.
Two of the Green Bank Network’s newest members announced exciting transactions this quarter:
DC Green Bank closed a groundbreaking $7,000,000 deal to accelerate the deployment of residential solar across the District of Columbia for low-to-moderate-income (LMI) residents. The deal is the largest DC Green Bank has closed since commencing full operations in April 2020. In Brazil, the Minas Gerais Development Bank (BDMG) and the Brazilian Agricultural Research Corporation (Embrapa) launched LabAgroMinas— a program that will provide credit solutions and technical assistance to encourage rural agricultural producers in the state of Minas Gerias to adopt new technologies that reduce greenhouse gas emissions and promote soil regeneration.
In a deal that could be of interest to developers in the affordable housing space, New York Green Bank (NYGB) closed its first stand-alone bridge incentive loan. NYGB provided an $8 million multi-draw term loan facility to e2i (dba Clean Asset Co., LLC) to enable e2i to build and retrofit high-performance electric affordable multifamily homes in New York State.
You can read more about our member activities below.
Happy reading,
NRDC
Green Bank Network Secretariat
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Recent Green Bank Transactions
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Clean Energy Finance Corporation
Awards for CEFC investments:
 Australia’s Clean Energy Finance Corporation has been named Global Sustainable Investor of the Year and Asia Pacific Institutional Investor of the Year at the inaugural Agri Investor Awards. The awards recognise leadership in driving investment towards sustainability focused, low carbon agriculture across a diverse range of investment opportunities and low emissions energy technology solutions.
Separately, the Investor Group on Climate Change awarded CEFC investee company BNP Paribas the Innovation of the Year in the 2022 Climate Finance Awards, in recognition of its work in developing the Australian Climate Transition Index. The index seeks to identify companies likely to perform well in a world undergoing a 2°C transition.
Recent CEFC transactions:
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Cleaner, greener approach to manufacturing: Australia’s largest wheat processor and ethanol manufacturer, the Manildra Group, is drawing on $85 million* in CEFC finance to install cogeneration technology to cut emissions by some 40 percent, abating an estimated 332,000 tonnes of CO2-e annually.
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First CEFC investment in e-waste: Innovative Australian e-waste recycler Scipher Technologies, backed by $7.5 million from the CEFC, is expanding its ability to tackle the mounting problem of electronic or e-waste, covering the disposal of end-of-life electrical and electronic equipment.
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Prepared for take-off: Australian ingenuity to cut aviation emissions: Boosted with a $2 million investment from CEFC, MicroTau, an advanced manufacturing company, has created a lightweight film product – modeled on shark skin – that can be applied to the surface of aircraft, reducing drag, improving fuel efficiency, and cutting emissions.
Shaping our market:
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The CEFC is proud to be a part of the Australian Industry Energy Transition Initiative, which brings together key industry and finance participants to accelerate action towards achieving net zero emissions in Australia’s supply chains. The Initiative’s latest report – Setting up industrial regions for net zero – finds significant potential for decarbonisation in regional Australia and shows how industrial regions can contribute to reaching net zero emissions by 2050.
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The CEFC played a leading role in the development of ESG guidelines for the securitisation sector, via the Australian Securitisation Forum. The Market Guideline on ESG disclosure provides a reference point for originators, issuers, investors and other intermediaries in developing ESG practices in securitisation, enhancing transparency and comparability in the Australian market.
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The latest addition to the CEFC Green Files focuses on the role of private equity in the transition to net zero emissions, via an interview with Natasha Morris, Managing Director, Responsibility and Impact at Adamantem Capital.
See the latest transactions and announcements on the CEFC website.
(*All CEFC $ references are AUD)
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Connecticut Green Bank
 In May, CGB Green Liberty Notes LLC, a subsidiary of the Connecticut Green Bank, closed their spring crowdfunding investment offering, successfully bringing their total raise to $303,635 this year. The Green Liberty Notes allow citizens to invest in the Green Bank’s mission to confront climate change with as little as $100. Investment by everyday citizens in Green Liberty Notes supports Eversource’s Small Business Energy Advantage (SBEA) program, administered through the Conservation and Load Management Plan, which helps small businesses reduce their energy consumption by deploying energy-efficient equipment. Future Green Liberty Note offerings are planned to be available quarterly.
In June, the Connecticut Green Bank was honored as a recipient of the 2022 State Leadership in Clean Energy Awards for its Green Liberty Bond program. The award was sponsored by the Clean Energy States Alliance (CESA), a national nonprofit coalition of public agencies working together to advance clean energy. Since 2009, the biennial Leadership Awards have recognized outstanding state programs and projects that have accelerated the adoption of clean energy technologies.
In June, The Connecticut Green Bank announced $5 million in secured loan facilities to support the market expansion of Budderfly, a Connecticut-based company providing a unique energy management solution. Budderfly has provided energy and cost-saving services to over 80 Connecticut businesses, primarily quick-service restaurants, convenience stores, and healthcare facilities, and intends to use the loan to continue to expand its Connecticut customer base. Budderfly brings extensive knowledge of energy-saving technologies for refrigeration, lighting, HVAC, and more as well as tremendous experience retrofitting spaces to bring immediate energy improvements to its customers.
See all of Connecticut Green Bank’s latest transactions and announcements on the Connecticut Green Bank website.
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DC Green Bank
 In April, DC Green Bank closed an investment of more than $500,000 to support Shiloh Baptist Church of Washington as it pursues upgrades to its sanctuary building cooling system and considers additional building efficiency upgrades and capital improvements. The cooling system upgrade alone is expected to reduce electricity demand by the church by approximately 550 kWh for every eight hours of operation, eliminating the equivalent level of toxic emissions as avoiding over 980 miles driven by a typical passenger car. This investment is part of DC Green Bank’s Community Impact Initiative (CII) pilot program. The CII pilot is designed to support community-serving institutions, including houses of worship, as they pursue building and systems upgrades that increase energy efficiency and reduce operating costs.
In May, DC Green Bank and Uprise Electric closed a more than $530,000 deal to accelerate the deployment of community solar across the District. The loan agreements will deliver funds for the construction of approximately 75 kW of capacity across 15 residential projects. The deal also includes hundreds of thousands of dollars as part of a revolving credit facility to make financing available for the development and deployment of up to an envisioned 75 kW of additional community solar as well. The initial 15 projects are expected to create up to 13 clean economy jobs, generate more than 90 MWh of renewable energy, and avoid approximately 64 tons of CO2 equivalent annually.
In May, DC Green Bank closed a $7 million deal with PosiGen to accelerate the deployment of residential solar across the District for low-to-moderate-income (LMI) residents. The loan agreement will unlock funding for the construction of up to 3,000 kW of solar capacity on approximately 320 homes across the District. The installations are expected to create hundreds of clean economy jobs in the construction phase and generate more than 3,600 MWh of renewable energy on a yearly basis while avoiding more than 2,500 tons of CO2 equivalent annually.
In June, DC Green Bank closed a $1,000,000 joint venture with a local Community Development Financial Institution (CDFI), the Latino Economic Development Center (LEDC). The joint venture is capitalized with $900,000 from DC Green Bank and $100,000 from LEDC. The goal of the venture is to deliver affordable loans to community-serving organizations and small businesses in areas of the city that have seen low levels of investment historically. Borrowers will be able to access loans ranging from $25,000 to $250,000, or more on a case-by-case basis – a level of investment that is sometimes considered too small for larger banks to consider lending but is nevertheless critical to the futures of smaller, community-focused organizations and businesses.
See all of DC Green Bank's latest transactions and announcements on the DC Green Bank website
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NY Green Bank
 During the quarter ended March 31, 2022, NY Green Bank (“NYGB”) committed $23 million across two new investments, according to its recent Quarterly Report. This report was for the fourth quarter of NYGB’s 2021-22 Fiscal Year, during which NYGB committed $437.8 million, $212.8 million more than its annual target.
In March 2022, NYGB provided an incremental $15 million to support the refinancing of Sunrun’s $600 million senior secured revolving credit facility. The original facility was $250 million, under which NYGB had a $25 million commitment. This transaction will enable Sunrun to continue supporting its distributed energy project portfolio for homeowners across NYS.
In March 2022, NYGB provided an $8 million multi-draw term loan facility to e2i (dba Clean Asset Co., LLC). This transaction will enable e2i to build and retrofit high-performance electric affordable multifamily homes in New York State.
See all of NYGB’s latest transactions and announcements on the NYGB website.
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New Zealand Green Investment Finance
 In May, NZGIF announced it was facilitating the entry into the New Zealand market of EV fleet and battery storage specialist, Zenobē with a $20 million investment. NZGIF is providing a $20 million* finance facility to support Zenobē with the deployment of electric bus (E-Bus) fleets under long-term lease agreements with major operators in New Zealand. A further $30 million is being held in reserve to support additional uptake, which NZGIF hopes sends a strong signal to the public transport sector that commercial, zero emission solutions will be more accessible.
The deal brings Zenobē’s expertise in fleet electrification and putting together bespoke funding structures to New Zealand. The flexible rental contracts enable operators to take the time to understand the operational changes required as they transition to battery electric vehicles. This allows them to adapt and/or grow, minimising the usual level of risk.
Also in May, New Zealand’s first Emissions Reduction Plan (ERP) was released. NZGIF welcomed the release of the ERP and acknowledged the cross-party support in passing the initial emissions budgets in the New Zealand Parliament. Chief Executive Craig Weise said that the ERP is a significant step towards government expenditure more systematically targeting climate change and reinforces the important role NZGIF plays in supporting the transition to a low-emissions economy.
Mr Weise said that NZGIF has already made investments in many of the areas of national focus including public transport, energy efficiency and agriculture to drive innovation and accelerate the deployment of climate solutions.
In April, NZGIF investee company ESP acquired BraveGen, creating New Zealand’s largest energy efficiency and sustainability management solutions software and services business. NZGIF made a $2.7m equity investment in ESP in 2020 to help it provide New Zealand companies with intelligent energy and carbon management solutions. It is now making an additional $1.75m equity investment to support this acquisition, bringing NZGIF’s total investment in ESP to $4.45m.
See NZGIF’s latest transactions and announcements on the NZGIF website.
(*All NZGIF $ references are NZD)
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Rhode Island Infrastructure Bank
 In late March, Rhode Island Infrastructure Bank (RIIB) announced $827,000 in water quality grants to 4 public water systems across Rhode Island. Awards come from the Bank’s Water Quality Protection Charge program, which makes funds available to public drinking water suppliers to complete projects that protect sources of drinking water. This includes, among other projects, a $672,000 grant to the Kent County Water Authority for the purchase of two parcels in the Town of Coventry and Hopkins Hill water main looping and re-servicing and a $123,900 grant to the Westerly Water Department for the development of a Water Supply System Management Plan, a vulnerability assessment, and a dead-end looping project on Spray Rock Road.
In early April, RIIB announced $4.9 million in Action Grants for participants in the Municipal Resilience Program (MRP). Communities prioritized local actions through the program and will use grant funds to implement projects that will increase their climate resilience. The Bank’s Municipal Resilience Program directly supports cities and towns to identify and fund priority resilience projects, with a particular focus on nature-based solutions and those benefitting disadvantaged communities.
In June, Rhode Island Infrastructure Bank closed on a $7.8 million Clean Water State Revolving Fund loan for the Town of Bristol to finance a number of upgrades to the town’s wastewater treatment facility, including rehabilitating settling tanks, new dewatering equipment, and new piping.
See all of the RIIB’s latest transactions and announcements on the Rhode Island Infrastructure Bank website.
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Setting up Industrial Regions for Net Zero
The CEFC is proud to be a part of the Australian Industry Energy Transition Initiative, which brings together key industry and finance participants to accelerate action towards achieving net zero emissions in Australia’s supply chains. The Initiative’s latest report – Setting up industrial regions for net zero – finds significant potential for decarbonization in regional Australia and shows how industrial regions can contribute to reaching net zero emissions by 2050.
The report finds that the 70 MtCO2-e of potential abatement identified in these five regions represents an 88 percent reduction in current emissions – equivalent to removing all cars and light commercial vehicles from Australian roads. To achieve this level of abatement, investment in these regions and enabling infrastructure required would be in the order of $50 to $100 billion.
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Green Financial Facilities: an accelerator of a climate-resilient and sustainable development in Africa
 In May, the Innovate for Climate Conference hosted a workshop titled Green Financial Facilities: an accelerator of a climate-resilient and sustainable development in Africa. This workshop was designed to serve as a platform to support the exploration of national green finance facilities (GFF) in Africa. It created a forum for country representatives, actors from the African Financial Sector and experts to discuss GFF establishment issues, both shared and country-specific, through a panel discussion. By drawing from a successful Green Bank business model, the objective of this workshop was to build green financial capacity within the continent by supporting National institutions and finance facilities. The African Development Bank is leading by example in supporting these green banks and facilities through the dedicated vehicle AG3F (Africa Green Finance Facility Fund).
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See more white papers covering the green bank model on the GBN website's Knowledge Center.
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