A state-driven federal clean energy finance initiative would effectively leverage private financing for clean energy development, according to a proposal published by the Clean Energy and Bond Finance Initiative (CE+BFI) for Congress to consider. CE+BFI is a joint initiative of Clean Energy Group and the Council of Development Finance Agencies (CDFA).
The proposed State Clean Energy Finance Initiative would have the federal government place a greater emphasis on bond financing for clean energy projects and businesses. The proposal would continue the important public role of providing financial support for the adoption of clean energy technologies, but through credit enhancement tools designed to leverage private capital.
“The State Clean Energy Finance Initiative is designed to assist the clean energy industry in accessing affordable capital through an innovative and efficient program structure,” said Lew Milford, President of Clean Energy Group.
The proposed initiative would be housed at the U.S. Department of the Treasury but program development and project financing approvals would be conducted by state governments. The model is based on an existing program to support small business credit.
“American infrastructure is financed and developed through a mix of public- and private- sector involvement, coordinated through the municipal bond market,” said Toby Rittner, President & CEO of the Council of Development Finance Agencies. “This proposal would help put clean energy infrastructure on the same footing.”