Innovation in Finance Sparks New Model for Public/Private Investment in Clean Energy

Green Bank

The Harvard Kennedy School’s Ash Center for Democratic Governance and Innovation announced in July that the Connecticut Green Bank had won this year’s Innovations in American Government Award. The Ash Center award recognizes excellence and creativity across a wide range of government initiatives, from technology and public health programs to conservation and education. That Connecticut’s pioneering clean energy financing model won this prestigious award, selected from among thousands of entries, speaks to the important role of states in accelerating the renewable energy transition.

Connecticut first established the Green Bank in 2011 through Public Act 11-80 as a key part of the state’s strategy for achieving its energy and climate goals. The main objective was to have cleaner, cheaper, more reliable sources of energy while also creating jobs and spurring local economic development. Leveraging private investment dollars with limited public funds is at the heart of the green bank’s operation.

Since its inception, the Connecticut Green Bank has attracted over $6 of private capital for every $1 of public funds committed. Overall, the Connecticut Green Bank has achieved nearly $1.1 billion in clean energy investment across the state. This investment has supported almost 25,000 projects and more than 230 megawatts of clean energy, resulting in greenhouse gas emissions reduction of 3.7 million tons. Over 13,000 jobs have been created, translating to an estimated 7.5 to 20 percent of total job creation in Connecticut, and clean energy prices have declined by about 20 to 30 percent. Click here for full article