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New Jersey RFI kick-starts green bank formation

The request for information aims to pave the way for the US state to create a green financing mechanism that effectively channels public and private funding to achieve its clean energy goals.

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A green bank would help New Jersey achieve its plans to expand clean energy
A green bank would help New Jersey achieve its plans to expand clean energy

The US state of New Jersey is seeking input from stakeholders to inform the design and formation of a new green financing mechanism to support investments in clean energy technology.

 

A request for information (RFI) issued by the New Jersey Economic Development Authority (NJEDA) marks the first “concrete step” to kick-off the green bank formation process.

 

Energy masterplan

 

The New Jersey Energy Masterplan outlines an actionable set of seven strategies and recommendations to enable the state to achieve its commitments to expanding clean energy and reducing greenhouse gas emissions between now and 2050.

 

According to NJEDA, the plan recognises that meeting these commitments will require a significant amount of private capital investment – and that New Jersey’s government can and should play a critical role in mobilising this capital by expanding opportunities for innovative and low-cost financing and leveraging public dollars to grow private sector investment.

 

“Investing in New Jersey companies that are deploying solutions to pressing clean energy challenges is not only critical for protecting our environment, but is also an opportunity to bolster our economy and create good jobs for New Jersey residents,” said Tim Sullivan, chief executive officer, NJEDA.

 

“This RFI is an important first step that will pave the way for us to create a green financing mechanism, such as a green bank or a green fund, that effectively channels public and private funding to achieve our bold clean energy goals.”

 

To date, financing mechanisms similar to the fund the NJEDA is considering have been established in nine states and a number of municipalities and counties across the US. Green financing mechanisms are also under development in several other states, it reports.

“In issuing this RFI, we’re doing the work today to ensure we’ll have the capital investments we’ll need tomorrow to deploy cleantech solutions on a large scale.”

The RFI seeks input from all individuals and organisations that have an interest in how a green fund may be established and operate in the state. This includes: commercial banks; specialty lenders; businesses developing clean energy initiatives; current- and potential suppliers within the clean energy supply chain; and organisations with specialised knowledge and expertise related to the creation and operation of green banks, green funds, and similar financing mechanisms.

 

The questions focus on standing up the proposed green fund as well as how to best manage it over the long term to ensure the greatest benefit for New Jersey.

 

“Achieving the goals outlined in the Energy Master Plan is critical to protecting New Jersey’s environment and long-term economic success,” added Joseph Fiordaliso, president of New Jersey Board of Public Utilities

 

“In issuing this RFI, we’re doing the work today to ensure we’ll have the capital investments we’ll need tomorrow to deploy cleantech solutions on a large scale. This includes establishing a green financing mechanism that works for New Jersey’s business, investors, and workers.”

 

More details on the RFI can be found here.

 

Responses are due 17 April 2020 and can be emailed to: [email protected].

 

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