Developing, deploying, and scaling low- and zero-carbon technologies in time to avoid the worst impacts of climate change—while also bolstering resilience to climate impacts—will require an unprecedented infusion of capital in a very short time frame. Over the past decade, green banks have emerged as a critical mechanism to strategically deploy public financial resources in ways that can leverage private capital and accelerate the transition to a decarbonized, resilient future.

Surveying a decade’s worth of state and local green bank successes and challenges can illuminate some design elements that states, localities, and the federal government should consider as green banks mature and as new green banks are established to accelerate clean energy deployment. Key considerations include organizational structure, initial capitalization and ongoing funding, operational scope, types of financing products and services, and impact metrics.