State or donor-sponsored financial entity that works in partnership with the private sector to increase investments into green businesses and markets that are underserved by commercial finance. The backing from a Government (or donor) guarantee the Bank can catalyze private investments and introduce new financial products. While the emphasis has traditionally been on renewable energy, the focus of green banks can extend to other environmental areas including conservation and biodiversity.
Green Banks have been increasing the amount of investment that is flowing into conservation and biodiversity. While there are several various examples that exist, capacity building organizations within the green banking space have also become active in recent times. The Green Bank Network is a membership organization formed to foster collaboration and knowledge exchange among existing Green Banks, enabling them to share best practices and lessons learned.
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Return-Based Investments —> Debt: Leasing, Bank Loans, Notes and Trade Finance