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Coalition for Green Bank applauds US Congressman Chris Van Hollen’s Green Bank Act

25 Mar 2009

The Coalition for Green Bank has welcomed Congressman Chris Van Hollen’s bill which establishes the Green Bank to catalyse the financing of clean energy and energy efficiency projects.

The Coalition comprises renewable resource developers, equipment manufacturers, investors, financial advisors and consultants all interested in the development of sustainable energy.

The proposal calls for the Green Bank to be an independent, tax-exempt, wholly-owned corporation of the US which will provide financing support to renewable energy projects across the nation. Green Bank would receive an initial capitalisation of $10bn through the issuance of Green Bonds by the Department of Treasury, with a limit of $50bn.

Reed Hundt, co-chair of the Coalition for Green Bank, said, ‘Many congratulations to Congressman Van Hollen for his leadership in introducing the bill creating the Green Bank. More than ever, America needs a new, specialised, well-capitalised bank to help private investors build a green future for our economy, and this proposal is a ray of sunshine through the clouds that have been covering the prospects for alternative energy.’

CGB estimates that the Green Bank initial capitalisation of $10bn to fund upwards of $50bn can result in 15GW of renewable energy, reducing annual energy costs by $22.5bn. In addition, it is expected to create 1.5 million new jobs and slash carbon emissions by 29.6 million tonnes.

T Boone Pickens added, ‘An alternative energy bank is a creative and needed way to jump start the private sector’s involvement in renewable and other alternative energy projects. This money will be paid back and, at the same time, be a major down payment on our efforts to reduce our costly and dangerous dependence on foreign oil.’

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One Response to “Coalition for Green Bank applauds US Congressman Chris Van Hollen’s Green Bank Act”

  1. This is an excellent idea. Even if the singular goal of this organization is to help provide consistancy/stability to sub lending agencies, whom invest in Greentech. Short term low interest bridge loans would help project be developed and installed. Then, follow-on fixed rate laons can be more justifiable to the free market. Lastly one important note that should be considered for the CBG, a portion of the bank should be set aside to offer existing utility scale power producers a lower interest rate loan for them to refinance thier plants and conform with the renewable eenrgy times. I have found that utility companies are not adverse to renewables but they must pay attention to their exisitng assets cash flows, which were based on demand growth projections that no longer make sense. Easing thier pain will go a long way to fullfilling a renewable energy shift in the utility mix.

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