Senate bill seeks to create national climate bank

Legislation that would create a federal bank to invest in clean energy technologies and infrastructure was introduced in the U.S. Senate this week.

The National Climate Bank would provide financing to regional, state, and local green banks and invest in projects that reduce carbon emission. The bill would also provide technical assistance for the start-up of new green banks around the country.

The National Climate Bank would be capitalized with $10 billion to start with an additional $5 billion added every year for five years.

Lawmakers say that an investment of $35 billion of public funds into a national climate bank could generate between $213 and $700 billion in investment into clean energy-related projects.

“When we invest in clean energy projects at home, we can export American technology and expertise overseas instead of importing foreign oil,” Sen. Edward Markey (D-MA), one of the bill’s sponsors, said. “A national climate bank is a model for how the financial, government, and private sectors can work together to leverage investment in climate action. We must continue to find innovative ways to capture and accelerate the momentum of the green economy, and a National Climate Bank will help invest in projects that are looking to decrease energy use and decrease carbon emissions.”

The bill was also sponsored by Sen. Chris Van Hollen (D-MD), and co-sponsored by Sens. Brian Schatz (D-HI), and Richard Blumenthal (D-CT).

“We stand at a precipice when it comes to addressing the threat of climate change. A central part of any plan to deal with the crisis must include a major federal investment in clean technologies. A smart way to do this is to create a National Climate Bank, which will give a jump start to the great work already happening at the state and local levels and within the private sector,” Van Hollen said. “This builds upon and adds to the Green Bank Act, which I was proud to lead in the House of Representatives and will continue to fight for in the Senate. As this Administration continues to deny the harmful effects of climate change, the creation of a National Climate Bank is one way we can move forward on building a 21st-century clean energy economy — with good-paying American jobs and a more sustainable future.”

The National Climate Bank will seek to invest in areas like renewables, storage, transportation, transmission, resiliency, efficiency, reforestation, agriculture, and industrial de-carbonization.