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Green Investment Bank

Accelerating the transition to a zero carbon economy

There is growing interest from national and regional governments in creating Green Banks – or other Green Financial Institutions – in order to provide finance to priority activities for decarbonisation and the energy transition, alongside other policy instruments and market developments.

One challenge of implementing Green Banks, and similar institutions, is their perceived complexity. However, E3G’s experience– first in the UK and then in South Africa and Mexico – shows there are common design principles which are applicable everywhere, even as local contexts and institutions differ.  

E3G was at the heart of developing the world’s first-ever Green Investment Bank in the UK and continues to work closely with it today.  As the original public bank dedicated exclusively to financing low carbon and green infrastructure and business, the UK example has gone on to spur a movement, with over 12 publicly owned banks now established around the world.

The complexity of infrastructure decisions and investments require institutions with the capability to develop sectoral strategies and to adapt to changing contexts, all whilst complementing existing financial institutions. Delivering the low carbon transition requires institutional innovation.  

E3G is developing a Green Bank Learning Platform to assist policymakers in developing such institutions. The Learning Platform will help fast-track Green Bank development by allowing policymakers to gain insight into international best practice. By showcasing key methods and tools used throughout the design and establishment of Green Banks - what was adopted, what was abandoned and more importantly how decisions were reached – the Learning Platform will allow policy makers to act swiftly.