The Green Banks Design Guide
Summary
The guide evaluates four green bank models—standalone green banks, green-focused policy development banks (PDBs), green facilities within PDBs, and country platforms—based on a country's economic position, governance, and product needs. It specifically highlights that country platforms are most suitable for low-income countries (LICs) and debt-distressed nations due to international financial institution (IFI) support. Additionally, the guide proposes three international support mechanisms: a new green bank design accelerator providing technical and seed funding, the expansion of existing platforms like the FiCS Innovation Lab, and the formation of a coalition of existing initiatives for knowledge exchange.
Key insights
- The suitability of green bank formats in EMDEs depends on economic status and financial market maturity. Standalone green banks are unlikely in low-income countries (LICs) or debt-distressed nations and require tier-1 lenders to leverage co-financing. In contrast, country platforms are effective for LICs and lower-middle-income countries (LMICs) with limited fiscal capacity because they do not presuppose developed local financial markets and are driven by partners at the supranational level.
- Different green bank structures offer varying levels of protection from political interference and different capacities for project scale. Standalone green banks are sequestered from political interference and can implement multiple small-scale programs for specific contexts like agriculture, forestry, other land use (AFOLU) and adaptation and resilience (A&R). Green-focused PDBs are more prone to routine political interference but can implement larger, homogeneous programs.
- The document proposes a 'green bank accelerator' as a support option to provide technical assistance, funding assistance, and a learning hub. This accelerator could provide USD 550,000 per feasibility study and seed capital of USD 5 million to help institutions establish pipelines, partnerships, and optimal capital structures.
Cite the original document
- 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} }
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