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This policymaking simulation focuses on clean energy proposals facing Congress - specifically, Green Banks.
Green Banks help fund clean energy projects. As you may know, individuals and companies adopting clean energy or energy-saving technologies face a certain financial “hump.” This hump is the initial cost of the technology, which can be substantial. Many individuals and companies do not have the funds to cover this initial cost.
Therefore, they need to go to banks or investors for investment money. But most banks and investors do not normally get involved in these types of projects because they are too small and not worth their time. Banks often don’t have enough knowledge about clean energy to know whether these projects are a good investment.
Currently, there are a number of green banks that have been created with funds from state, county, or city governments. Green banks help fund clean energy projects in two ways:
- They provide low-interest, long-term loans that are usually not offered by ordinary banks.
- They thoroughly assess projects and then provide information to other banks and investors, encouraging them to invest as well.
Besides having environmental benefits, green banks are meant to create local jobs and stimulate US domestic manufacturing. After the funds have been provided, green banks have been self-sustaining, as the loans they make are repaid, making it possible to reinvest those funds.
We will now consider a proposal for the Federal government to provide $35 billion to create a national green bank that would provide funds to help local and state green banks fund more projects, help create new green banks, and invest directly in clean energy projects.