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newable and efficiency projects that can be cost effective are not being built due to lack of capital for investment, or capital that is too expensive. Green banks draw in greater private investment through it’s public-private partnership structures, and lowers the cost of capital. By helping to bring down interest rates and extend terms of financing, more projects are costeffective and can compete with coal-fired electricity. There may be market segments that do not need this kind of financing support. For instance, India’s wind industry has been robust and strong for years, and lack of capital may not be an issue. But the solar industry is relatively young and distributed solar can be a great solution, but is unable to find enough cheap capital. ENERGETICA INDIA: You have organized The Green Bank Academy. Please tell us more about it? MR. JEFFREY SCHUB: The Green Bank Academy was a conference co-hosted by CGC, the Brookings Institution (a U.S. leading think tank), and the Connecticut Green Bank (the first state green bank in the U.S.). It was a gathering of policymakers from 13 states who were eager to learn more about the green bank concept, and hear about specific financing examples. We also helped government leaders understand the process for creating a green bank. The exact nature of the institution varies across governments, as the landscape of existing institutions, sources of funding and market needs varies. But the Academy was an excellent event and actually sparked a huge increase in interest in the U.S. In addition to the U.S.-focused Green Bank Academy, CGC has helped organize two global conferences on green banks with the OECD. The OECD has hosted two Green Investment Finance Forums, which gathered green bank leaders from around the world, as well as representatives from development finance institutions and national governments in order to learn the best-practices and basic concepts of green banks. The OECD also hosted an official side event of COP21 on green banks, just a few weeks ago. The website has more information, as well as a policy paper just published. RENEWABLE ENERGY ENERGETICA INDIA: What sort of potential exists in India to support development of a Green Bank? MR. JEFFREY SCHUB: I think there is great opportunity, and need, for green banking concepts in India. This is true for three reasons. The first is investment need. India has committed to installing 175 GW of renewables in only 7 years at an estimated cost of $200 billion. India will need to pull in all possible sources of capital from within and outside India. This includes development finance institutions, private investors, the Green Climate Fund, green bond issuances and more. There needs to be a funnel to inclean vitality, more capable utilization of open assets, and re-enactment of adult private money related markets for clean vitality contributing. There are generally three structures to consider. • First, as was done in Connecticut, the green bank can be standalone as a quasiindependent entity. This structure allows for the most flexibility and autonomy. • Another option is for the green bank to be housed within an existing state agency. The New York Green Bank and Hawaii’s clean energy financing programs operate within state agencies. • A green bank can also be incorporated into an infrastructure bank, where it would likely be established as a separate subsidiary. • A green bank can receive its initial funding from several public sources. In both Connecticut and New York, existing state funds (systems benefit charges) were repurposed and Regional Greenhouse Gas Initiative (RGGI) funds also provided initial capital for the green bank. • On the other hand in Hawaii, the state has issued bonds to private investors. Green banks can also receive money from cap and trade auction revenues and private foundations, depending on the state and legal structure established when the green bank is created. New state budget appropriation is rarely advised, unless it appears clearly feasible in a particular state 53 energetica INDIA · JAN | FEB16


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