What is a Green Bank?

A Green Bank is defined as a financial institution specifically dedicated to funding environmentally sustainable projects. The primary objective of a Green Bank is to mobilize private investment in green projects and technologies, which can include renewable energy initiatives, energy efficiency programs, and other environmentally friendly developments. By acting as a catalytic force, Green Banks often provide financing solutions that may not be available through traditional banks, thereby promoting economic growth while contributing to environmental sustainability.

The focus of a Green Bank on environmentally sustainable projects distinguishes it from other types of financial institutions. Unlike a traditional bank that might lend to various sectors, a Green Bank is committed to addressing climate change and supporting the transition to a low-carbon economy. This mission aligns with growing public and private sector interests in sustainable practices, making Green Banks an essential player in the financing landscape for environmentally friendly initiatives.