The Green Banks Design Guide

The Green Banks Design Guide provides a framework for selecting and supporting green bank formats in emerging markets and developing economies (EMDEs), detailing four primary institutional models and three options for international support to accelerate their development.

• The guide identifies four distinct green bank formats suitable for EMDEs, each with different suitability based on a country's economic position and financial markets: standalone green banks, green-focused Policy Development Banks (PDBs), green facilities within PDBs, and country platforms. Standalone green banks are described as "De novo institution with a green mandate" and are considered "Unlikely in LICs or debt-distressed countries." Green-focused PDBs are PDBs that have "extended its mandate and operations to climate/green finance" and are applicable for countries from Lower Middle Income Country (LMIC) level upwards. Green facilities are "Dedicated facility within a PDB with ring-fenced capital for a green mandate," while country platforms are "Government-led multi-stakeholder partnership supported by IFIs" and are noted as effective for LICs and LMICs with limited fiscal capacity because "IFI support makes this approach effective."
• The four green bank models differ significantly in their governance, risk of political interference, and scale of operations. Standalone green banks are typically "Sequestered from political interference" and can implement "multiple small-scale programs." Green-focused PDBs are often "large, hierarchical process-driven structures" that may "face routine political interference" but can implement "relatively large programs." Green facilities are "Partly sequestered from political interference" and are scalable based on "facility mandate and IFI support." Country platforms are described as "Completely sequestered" from political interference, as they are "often entirely funded by donor countries or IFIs," and can provide "Large-scale solutions relative to the country’s financial strength."
• The document proposes three options for international support to aid green bank development: a new design initiative (accelerator), expanding an existing support platform, or forming a coalition of initiatives. A green bank accelerator would provide "Technical assistance, funding assistance, and acting as a learning hub," with proposed funding of "USD 550k per feasibility and seed capital of USD 5 million." Expanding an existing platform, such as the "FiCS Innovation Lab," would focus on providing technical assistance primarily to PDBs. Forming a coalition, such as the "Green Bank Design Summit," is a "light-touch option" focused on "ideation, knowledge exchange, and partnerships" without providing explicit technical assistance.

APA

Climate Policy Initiative (2025). The Green Banks Design Guide. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/04/Green-bank-design-guide-2025.pdf

Chicago

Climate Policy Initiative. The Green Banks Design Guide. 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/04/Green-bank-design-guide-2025.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=The Green Banks Design Guide |date=April 2025 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2025/04/Green-bank-design-guide-2025.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025green, author = {{Climate Policy Initiative}}, title = {{The Green Banks Design Guide}}, institution = {Climate Policy Initiative}, year = {2025}, month = apr, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/04/Green-bank-design-guide-2025.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }