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Resource guide for NDC finance

Selecting effective financial instruments to support action on climate change

This low emission development strategies (LEDS) Finance Resource Guide presents a curated selection of resources on a range of topics around finance for LEDS and Nationally Determined Contributions (NDCs). It is designed to help LEDS practitioners find high-quality resources that meet their specific needs, avoiding time-consuming searches on the internet. It will be useful to individuals working on, or interested in, LEDS and NDC finance in both developed and developing countries.

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2.5 Green investment banks

A green investment bank is a public entity established specifically to facilitate private investment in domestic low carbon, climate resilient infrastructure. Using innovative transaction structures, risk reduction and transaction enabling techniques, and local and market expertise, green investment banks are channeling private investment, including from institutional investors, into low carbon projects. Green investment banks are facilitating investment in such areas as commercial and residential energy efficiency retrofits, rooftop solar photovoltaic systems, and municipal level, energy efficient street lighting. The creation of a green investment bank can send a signal to the marketplace and to other countries that a country or region is seeking to become a leader in scaling up private low carbon investments. (Adapted from Green investment banks—OECD policy perspectives, OECD, 2015.)

Related resources

Green & resilience banks: How the green investment bank model can play a role in scaling up climate finance in emerging markets

Organization(s):NRDC/Coalition for Green Capital/Climate Finance Advisors

  • Green investment banks

This paper, authored by the Coalition For Green Capital, the Natural Resources Defense Council and Climate Finance Advisors, shows how green investment banks are succeeding in countries such as Australia, Japan, Malaysia, UK, and the USA. Green investment banks are specialized public financing authorities set up to persuade private investors to increase and accelerate their investment in renewable energy and energy efficiency. The paper also explores the potential of the green investment bank model in emerging and developing economies.

Green investment banks: Scaling up private investment in low-carbon, climate-resilient infrastructure

Organization(s):OECD

  • Green investment banks

This report provides the first comprehensive study of publicly capitalized green investment banks, analyzing the rationales, mandates, and financing activities of this relatively new category of public financial institution. Based on the experience of over a dozen green investment banks and similar entities, the report provides a nonprescriptive stocktaking of the diverse ways in which these public institutions are catalyzing private investment in low carbon, climate resilient infrastructure and other green sectors, with a spotlight on energy efficiency projects. The report also provides practical information to policymakers on how green investment banks are being set up, capitalized, and staffed.

Green investment banks—OECD policy perspectives

Organization(s):OECD

  • Green investment banks

This Policy Perspective describes the relatively new phenomenon of publicly capitalized green investment banks, and examines why they are being created and how they are mobilizing private investment.

Country case study

Greening India’s financial market: Investigating opportunities for a green bank in India

Organization(s):NRDC/CEEW/IREDA

  • Green investment banks

This report explores the opportunity for a green bank in India, considers its potential contribution to a number of India’s mitigation objectives, and provides other examples of green banking measures from international contexts.