A public Green Investment Bank can catalyze a socially just and environmentally sustainable future.
Tackling the climate crisis requires immediate action, and calls for an equitable and just transition are gaining strength. Last week, the United Nations Conference on Trade and Development (UNCTAD) published its latest annual report, calling for a Global Green New Deal. Acknowledging that “public banking is undergoing something of a renaissance,” UNCTAD maintains that public banks can lead the way in financing a Global Green New Deal.
The question “How can public banks do it?” needs elaborating, since they are more market-driven now than in previous decades and their roles are often geared towards taking on private sector investment risks rather than pursuing the public interest.
Our report, A US Green Investment Bank for All: Democratized Finance for a Just Transition, published as part of the Next System Project, tackles these problems. We advance an argument for a US Green Investment Bank (GIB) whose design can facilitate a green and just transition.