Clean Energy Finance: Green Banking Strategies for Local Governments | US EPA (2024)

FAQs

What is the EPA clean energy financing Toolkit? ›

The Clean Energy Financing Toolkit for Decisionmakers provides profiles of a dozen clean energy financing programs that state and local decisionmakers can use to identify, develop, or revise state and local clean energy financing programs by providing examples across jurisdictions and access to more detailed ...

By streamlining operations and reducing administrative burdens, green banks can allocate more resources to financing sustainable projects. Improved efficiency also enables green banks to serve a larger number of clients and projects, thereby increasing their overall impact on the environment and the economy.

Green banks¹ are public, quasi-public, or nonprofit financing entities that leverage public and private capital to pursue goals for clean energy projects that reduce emissions.

Green or environmental banking can have potential drawbacks for businesses and investors. One drawback is the lower rate of return offered by green projects compared to fossil fuel projects, which makes financial institutions more interested in investing in fossil fuels.

Financing for commercial and multifamily property owners to fund qualifying energy efficiency, water conservation and renewable energy improvements in existing and newly constructed properties.

Electronic Payment Authorization (EPA)

Green banking refers to the promotion of environmentally friendly practices and the reduction of the bank's carbon footprint. It's similar to a traditional bank because it examines all social, environmental, and ecological concerns with the goal of protection and conservation of natural resources and the environment.

Green energy is renewable, doesn't emit greenhouse gasses, and doesn't harm the environment. Clean energy only means zero greenhouse gas emissions (but may have a finite resource supply or harm the environment in production).

Green banks use financing, not grants. Financing means that capital is eventually expected to be returned or repaid, and this helps to maximize the impact of each dollar that a green bank deploys. Because of this approach, green banks focus on markets where there is potential for payback.

Some green banks make direct loans while others provide credit support to local lenders who make the loans. Green banks can also make equity investments, but they don't take deposits.

What is the future of green banking? ›

Green Banking is about cultivating a sustainable future where financial success thrives alongside environmental well-being. The ripples of this movement extend far beyond reducing carbon footprints, offering a rich harvest of economic and social benefits.

The Toolkit contains essential information to help assess potential benefits and risks associated with on-farm renewable developments. The Toolkit contains: Detailed checklists to use throughout the developer negotiation process. Practical guidance for each stage of a renewable energy project development.

EPA's Energy Use Assessment Tool: An Excel-based tool that small- to medium-sized systems can use to conduct a utility bill and equipment analysis to assess individual baseline energy use and costs.

The U.S. Environmental Protection Agency issued the final Clean Power Plan under the Clean Air Act, the nation's fundamental air pollution law. The plan sets flexible and achievable standards that give each state the opportunity to design its own most cost-effective path toward cleaner energy sources.

ENERGY STAR Certified Products: Created in 1992 and authorized by the Energy Policy Act of 2005, the ENERGY STAR program helps consumers, government, and businesses across the country adopt energy-efficient products and practices.