One of the worst hit states by last year’s Superstorm Sandy, New York is moving aggressively to avert future climate-related weather events. Governor Cuomo announced the launch of a Green Bank last week, giving the state a timely and much-needed Christmas gift.
The move shows the state’s strong commitment to the acceleration of a clean, low-carbon energy economy. New York joins the ranks of several other states, including Connecticut and Hawaii, in addressing a key issue holding clean energy in America back, namely financing. The Green Bank, which has $210 million in initial funding originating from existing ratepayer and Regional Greenhouse Gas Initiative funds, targets market barriers to private financing of renewable energy and energy efficiency projects.
Working with private sector financial institutions, the Green Bank will offer financial products such as credit enhancement, loan loss reserves and loan bundling to support securitization (which promotes liquidity in the marketplace) and help build secondary markets. These products have long-proven successful in stimulating market developments and creating investment-quality, asset-backed securities that can be bought and traded. Read More