Two new financial institutions from Brazil and Washington, D.C., today joined a growing green financing movement that uses relatively small pools of public funds to attract substantially larger private funds to invest in renewable energy, energy efficiency and other low-carbon technologies and projects aiding the shift from fossil fuels to a climate-friendly future.

The two new members—Minas Gerais Development Bank (BDMG) of Brazil, a state-level development bank, and the D.C. Green Bank of the United States, a city-level green bank created to support a thriving, sustainable capital city for all—joined the Green Bank Network at an official side event held during the COP26 global climate talks in Glasgow.

The event titled, “Banking on Green: The role of green banks and development finance institutions in mobilizing private investments into climate solutions,” was organized by Green Bank Network, Green Bank Development Platform, Inter-American Development Bank, Latin American Association of Development Financing Institutions, Minas Gerais Development Bank and NRDC (Natural Resources Defense Council.)

COP26 has four key goals, one of which is on pushing developed countries to step up and increase their financial contributions to a crucial international fund established to help developing countries finance the clean energy projects and avoid harmful impacts from climate change. Green banks are trusted local partners based in developing countries that can leverage and direct this funding to projects that fight climate and build local communities.

Supporting emerging green bank initiatives through direct capitalization or co-investment and with technical assistance, including through the establishment of a Green Bank Design Platform, would mobilize international and national climate finance, develop local green economies, and help spur a green recovery.