Connecticut Green Bank Green Bank 2.0 Green Bonds US Maine Green - - PowerPoint PPT Presentation

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Sep 04, 2022 421 likes •600 views

Connecticut Green Bank Green Bank 2.0 Green Bonds US Maine Green Bank Summit June 25, 2020 Connecticut Green Bank Mission Statement and Goals Confront climate change and provide all of society a healthier and more prosperous future by

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Connecticut Green Bank

Green Bank 2.0 – Green Bonds US

Maine Green Bank Summit June 25, 2020

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Connecticut Green Bank

Mission Statement and Goals

Confront climate change and provide all of society a healthier and more prosperous future by increasing and accelerating the flow of private capital into markets that energize the green economy.

§ Leverage limited public resources to scale-up and mobilize private capital investment in the green economy of Connecticut. § Strengthen Connecticut’s communities by making the benefits of the green economy inclusive and accessible to all individuals, families, and businesses. § Pursue investment strategies that advance market transformation in green investing while supporting the organization’s pursuit of financial sustainability.

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Connecticut Green Bank

Reduce Costs – Increase Customer Demand

Energy Bill Energy Bill

BEFORE AFTER Energy Clean Energy Improvement (Behind the Meter)

REFERENCE Definition provided by the Coalition for Green Capital and adapted by the Connecticut Green Bank

Net Savings § Cheaper Clean Energy Project Financing Payment § Cleaner § Reliable § Healthier

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Connecticut Green Bank

Reduce Risk – Increase Supply of Private Capital

Connecticut Green Bank Private Investors Clean Energy Projects (Families, Businesses & Government)

Financial Return Financial Return Risk Mitigation

Clean Energy Fund/RGGI

Creation & Public Capitalization 1 Public Investment ($1.00) 2 Private Investment ($6.00) 3 1 2 3

Capitalization of Green Bank Innovative financing structures Private investment flows

Social & Environmental Return

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Connecticut Green Bank

Impact Investment – Social and Environmental

INVESTMENT ECONOMIC DEVELOPMENT ENVIRONMENTAL PROTECTION $283 MM $1.8 B $46.9MM $24.2 MM $22.7 MM

23,004 direct, indirect, and induced job-years

42,000+ 375+ 8.7

131 million 1.7 million $229 to $517

TAX REVENUES ENERGY BURDEN REDUCED PUBLIC HEALTH SAVINGS

REFERENCES Connecticut Green Bank Data Warehouse – July 1, 2011 through June 23, 2020

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C-PACE

Commercial, Industrial, Non-Profit, and Multifamily

Market Segment Commercial, Industrial, Nonprofit and Multifamily (Warehousing) Product Summary Commercial Property Assessed Clean Energy (C-PACE) applies a benefit assessment to a property to finance clean energy improvements with SIR>1 Support Needed

Capital to finance clean

energy improvements

Contractors to install clean

energy improvements

Supportive municipality
Supportive mortgage lender

CT Results of C-PACE 328 projects, 24% industrial, $194.1 MM investment, 42.0 MW of RE, 29% projects have EE

REFERENCES Data from Power BI through 6/6/20

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Solar for All

Solar PV Lease and Energy Efficiency for LMI

Market Segment Residential Single Family LMI Solar PV and Energy Efficiency Product Summary Solar lease + energy efficiency package (fixed 20 years) to reduce energy burden with alternative underwrite/no credit score using community based marketing approach Support Needed § Local EE Contractors § Municipal, community and nonprofit introductions § Investors – senior lenders and equity investors § Subordinated debt capital, including tiered LMI incentive CT Results 3031 leases for $83.9 MM investment, 20.0 MW, 100% get HES, 66%+ EE, and reached 75% LMI

REFERENCES Data from Power BI through 6/22/20

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Food Waste to Energy

AD and CHP

Market Segment Project Finance Project Summary

Provided long-term subordinated debt (i.e., 15 years) at low interest rate (i.e., 2%) for 20% of the capital structure to finance the 1st AD project of its kind in CT

Why AD for Sanofi Pasteur

§ Production process produces a lot of farm waste (estimate of 10,000-12,000 tons per year each for hen and egg waste) § Increase size of Southington facility – located 17 miles from Meriden

CT Results of AD Project

$10 MM project, 1 MW, diverts

rganic materials from waste stream

while producing renewable energy and waste heat

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Connecticut Green Bank

Vision Statement – Green Bonds US

…a world empowered by the renewable energy

f community

REFERENCES Vision Statement inspired by the Innovations in American Government Awards at the Ash Center of Harvard University’s Kennedy School of Government, Maya Angelou’s “On the Pulse of Morning,” and the powerful words of Mary Evelyn Tucker on “inclusive capitalism”.

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Increase Investment

Green Bank 2.0 – Green Bonds US

REFERENCES 1. CT Population = 3,600,000. US Population = 321,400,000. World Population = 7,500,000,000. 2. CCEF Annual Investment = $32 MM (1:1). CGB Average Annual 2-Year Investment = $320 MM (6:1). Center for American Progress = $200 B a year for 20 years. UN Report = $6 T assuming $90 T over 15-years (i.e., since 2016).

x 10

EE and RE in US by CAP

r Sustainability by UN

$600-$800 = $1 in public investment in clean energy per person per year = $1 in private investment in clean energy per person per year Connecticut Clean Energy Fund $9/person/year Connecticut Green Bank 1.0 $90/person/year

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Green Bonds

Green Bonds Can Solve Our Climate Crisis Green Bonds Can Solve Our Climate Crisis

By Miriam Tuerk August 28, 2019 Those of us involved in the clean tech industry are well aware that financing is a key component of growing clean tech adoption. Despite a rise in Environmental, Social and Governance (ESG) investing, the financial services industry still has a lot of work to do to assist in the global effort against climate change. As with all things, this brings both social responsibility and business opportunity. … Here are some examples of companies leading the charge: Connecticut Green Bank While not a utility, the Connecticut Green Bank completed an issuance of $38mm for Connecticut’s Residential Solar Investment Program (RSIP) in May. RSIP provides homeowners with a rebate of $0.46 cents per watt of solar installed in order to help offset the costs of installing residential solar power.

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Green Liberty Bonds

Celebrating the 50th Anniversary of Earth Day

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Green Liberty Bond

Definition – Specific Class of Green Bond

§ Use of Proceeds – use of proceeds from the bond are invested to combat climate change (i.e., support Paris Agreement with mitigation and adaptation projects) and create jobs in our communities § Retail Accessible – bonds available to purchase by everyday citizens (vs. institutional investors only) in small denominations (i.e., ≤$1,000) § Certified and Verified – independently certified (e.g., Climate Bonds Initiative, Green Bond Principles, etc.) and verified as a climate bond or green bond for consumer protection

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Thank You

Connecticut Green Bank 845 Brook Street, Rocky Hill 300 Main Street, 4th Floor, Stamford (860) 563-0015 www.ctgreenbank.com www.greenbondsus.com www.greenlibertybonds.com