Green banks take the form of public, quasi-public, or non-profit financial institutions designed to accelerate investment in clean energy technologies, in part by leveraging public and mission-driven capital to mobilize private investment. They de-risk early-stage clean energy investments and prioritize deployment over profit. As financial interlocutors, they connect policymakers, developers, community lenders, and private banks.
The U.S. has over 40 state and local green banks of varying sizes and structures that in 2023 alone collectively invested $10.6 billion in public-private capital into clean energy projects. The number of green banks grew markedly since the first several were founded between 2007-2009. So too has the total amount of public-private investment made by green banks, growing from $5.7 million in 2011 to $10.6 billion in 2023—a cumulative total of $25.4 billion.