CALIFORNIA PUBLIC BANKS SUPPORT THE GREEN NEW DEAL
Public Banks: A Solution for Financing a Just Transition and Mitigating Climate Change
Governments around the world are facing the urgent need to fund the development and implementation of new green technologies to combat climate change. One effective solution is using public banks, as demonstrated by Germany’s successful efforts to build a green economy through public bank financing.
California can also take advantage of this approach by creating a network of public banks to invest in our future.
Public banks can lend up to ten dollars for each dollar of capital, making them an ideal solution for providing the necessary funding for green initiatives. A public bank, with a charter, directors, and management focused on a triple bottom line philosophy, could start making loans as soon as it opens its doors. This would ensure that the bank’s priorities align with preserving government depositors’ capital, helping residents in need, and safeguarding the planet.
DIVESTING FROM FOSSIL FUELS TO INVEST IN A SUSTAINABLE FUTURE
Wall Street banks have invested billions of dollars in technologies that harm the planet, such as fossil fuel extraction, processing, and transportation. Public banks have the opportunity to take a different approach, by divesting from these harmful industries and instead investing in clean resources, regenerative projects, and climate-conscious infrastructure support.
These investments in sustainable infrastructure projects and green initiatives, such as solar power for homes and businesses, electric car and bicycle charging stations, and more, benefit the environment and create jobs and economic opportunities for local communities. Financing these projects through public banks will bring well-paying jobs to local residents, improve the quality of life for our communities, and strengthen our economies at every level.
PIONEERING A NEW APPROACH TO TACKLING THE CLIMATE CRISIS
Governments pay millions in interest to private banks, whose profit-driven policies often impede progress toward a sustainable future. Depositing tax revenues in public banks can fund public projects at lower costs and support local financial institutions. This can significantly reduce infrastructure project costs, effectively doubling the power of investment in communities.
As the world faces the unprecedented challenges of the climate crisis, a new approach is needed. Public banks have the potential to anchor the necessary changes to mitigate current and future impacts. By creating a new paradigm for addressing the climate crisis, public banks can play a crucial role in achieving a sustainable future.