{"id":6985,"date":"2015-12-09T00:59:43","date_gmt":"2015-12-09T00:59:43","guid":{"rendered":"https:\/\/climatepolicyinitiative.org\/?post_type=cpi_publications&p=6985"},"modified":"2026-04-22T09:39:53","modified_gmt":"2026-04-22T09:39:53","slug":"getting-the-most-from-your-green-an-approach-to-using-public-money-effectively-through-green-banks-and-other-low-carbon-financing","status":"publish","type":"cpi_publications","link":"https:\/\/www.climatepolicyinitiative.org\/pt-br\/publication\/getting-the-most-from-your-green-an-approach-to-using-public-money-effectively-through-green-banks-and-other-low-carbon-financing\/","title":{"rendered":"Getting the most from your green: An approach to using public money effectively through green banks and other low-carbon financing"},"content":{"rendered":"

This document addresses the effective uses of public\u00a0financial interventions for low carbon projects. It provides\u00a0an overview of Climate Policy Initiative\u2019s (CPI\u2019s) approach\u00a0to determining the most efficient ways in which green\u00a0banking and other public financial interventions could\u00a0support the transition to a low-carbon economy. To\u00a0illustrate, it includes some findings from an application of\u00a0this approach to the large-scale renewable energy sector\u00a0in California. These findings are also provided in more\u00a0detail in our July 2014 report, \u201cGetting the most from your\u00a0green: A case study for using public money effectively for\u00a0large-scale renewable energy in California<\/a>.\u201d<\/p>\n

The transition to a low-carbon economy requires\u00a0substantial up-front capital investment. As a result, the\u00a0cost of financing this investment plays a significant role\u00a0in determining the transition\u2019s cost to society. Public\u00a0funds are increasingly becoming available that could be\u00a0used to address these costs or other barriers. Institutions\u00a0dedicated to using public resources to leverage private\u00a0capital in service of low-carbon objectives have been set\u00a0up in several states. Connecticut, New York, and Hawaii\u00a0have all created such institutions, commonly referred to\u00a0as \u201cgreen banks\u201d. Due to the current level of interest in\u00a0these institutions and the mechanisms they may employ,\u00a0the time is right for rigorous analysis of how these funds\u00a0can be most cost-effectively and efficiently deployed to\u00a0accelerate the decarbonization of the economy.<\/p>\n

As illustrated by Figure 1, we provide a framework\u00a0for critically assessing how and when public financial\u00a0interventions could effectively address these barriers to a\u00a0low-carbon economy \u2013 as well as when such instruments\u00a0would be less effective than another approach, and when\u00a0a dedicated implementing institution such as a green\u00a0bank would be desirable. Our framework addresses three\u00a0main questions:<\/p>\n