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ENERGETICA INDIA Green Banks: Empowering the Global Energy Sector through Clean Financing A green bank concept is based on the principle that if the price of carbon-intensive energy cannot be considerably augmented, then the cost of clean energy must plunge. What is a Green Bank? A green bank is a public or pseudo-public financing institution that makes available low-cost, long-term financing support to clean, low-carbon projects by leveraging public funds through the utilization of diverse financial machinery to draw classified investment so that each public dollar supports several dollars of private investment. Depending on the state, a green bank might match to a scope of structures, employ a wide range of open supports, and generate an oscillating assembly of financial products. Banks might use monetary instruments, for example, long haul and low loan fee credits, revolving advance assets, protection items, (for example, advance ensures or advance misfortune holds), and ease open speculations or it might make new budgetary products. A green bank will: • Encourage request by covering 100% of the immediate expenses with a mix of open and private financing; • Influence open assets by pulling in much better private speculation than clean vitality and productivity markets; • Recycle open speculation in order to grow green venture and leave taxpayers intact; • Diminish market inefficiencies; • Scale out clean vitality resolutions at the earliest, exploiting clean electricity and efficiency gains per state dollar. Green banks will try to accomplish a few objectives, tallying enhanced utilization of Energetica India talks to Mr. Jeffrey Schub, Executive Director, Coalition for Green Capital (CGC) to learn more about Green Banks & role of finance in the growth of global energy sector About Mr. Jeffrey Schub Jeffrey Schub is the Executive Director of the Coalition for Green Capital (CGC), a 501(c)(3) non-profit based in Washington, D.C. that works at the state, federal and international levels to generate clean energy finance initiatives, or “green banks”, that accelerate the growth of clean energy markets. CGC is the nation’s foremost consultant on green banks, which use limited public dollars to influence large private investments in clean energy. ENERGETICA INDIA: Please introduce our readers to Coalition for Green Capital Organization? MR. JEFFREY SCHUB: The Coalition for Green Capital (CGC) is an American non-profit organization based in Washington, DC with a mission of trying to rapidly grow renewable energy and energy efficiency markets with innovative new financing and market structures. Our primary work is to support government creation and implementation of new, purpose-built clean energy financing institutions, or “green banks.” CGC works with governments that want to grow clean energy markets in a way that maximizes the value of each public dollar and aims to drive greater private investment in clean energy. We helped to create the first state-level green banks in the United States are now working in over a dozen states in the U.S. ENERGETICA INDIA: What is the need of Green Bank? How does it differ from a normal bank? MR. JEFFREY SCHUB: The term “green bank” is a bit of a misnomer. It is not like a traditional bank, in that it does not accept deposits. It is really a government-owned or quasi-governmental investment fund, capitalized with public dollars. In India, this might be called a non-banking financing institution. By capitalizing the green bank with public dollars that might ordinarily be spent on subsidies, for instance, the green bank can operate with an extremely low cost of capital. It does not have to actually pay back a return on to the government that created it. This makes green banks incredibly flexible, as dollars can be used to offer credit enhancements, risk mitigation and gap financing for private investors to support projects that otherwise might not be built or would have to high a borrowing rate. Green banks play an important role in clean energy markets because re- RENEWABLE ENERGY 52 energética INDIA · JAN | FEB16


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