In full transparency, the following is a media release from Sen. Ed Markey , who was elected by voters in the Commonwealth of Massachusetts to serve the state in Washington DC in the US Senate. He is a Democrat.
WASHINGTON DC – Senators Edward J. Markey (D-Mass.) and Chris Van Hollen (D-Md.), and the Committee on Environment on Public Works Subcommittee on Clean Air, Climate, and Nuclear Safety announced it will hold a subcommittee hearing entitled, “Legislative Hearing on S.283, National Climate Bank Act” on Tuesday, April 27 at 2:30 p.m.
The National Climate Bank Act was introduced in the 117th Congress and is cosponsored by Senators Van Hollen, Richard Blumenthal (D-Conn.), Brian Schatz (D-Hawaii), Martin Heinrich (D-N.M.), and Debbie Stabenow (D-Mich.).
The legislation would provide $100 billion to an independent nonprofit bank to leverage private investments that ensure the United States is a world leader in combatting the causes and effects of climate change and maximize greenhouse gas emissions reduction per public dollar deployed.
The bank would finance clean energy projects, grid infrastructure, clean transportation, climate resilient infrastructure, agriculture and natural solutions using the green bank model; would be subject to labor standards; and would invest at least 40 percent of its capital in disadvantaged communities.
“We must unlock the power of private sector financing for climate change action, and ensure no communities are left behind if we are truly serious about creating a 21st century economy that is healthy and just,” said Senator Markey. “The National Climate Bank Act would draw on the wild success that green banks around the nation have already had leveraging private and public investment for climate solutions, and I look forward to working with my colleagues and the Biden administration to ensure that this legislation moves through the Senate at the pace the climate crisis demands.”
“The climate crisis demands urgent, bold action: we have no time to waste. We must act with conviction and vision if we want to save our planet and position our economy for the future, and utilizing private and public investment is a key way we can do just that,” said Chair Carper. “I’m pleased that our committee is exploring innovative ways to support the momentum towards a clean energy economy that will create jobs and protect our environment and public health. Senator Markey and Senator Van Hollen have demonstrated remarkable leadership and vision on this critical issue and I’m pleased to join them in announcing this important hearing.”
“Investing in clean energy will not only help us tackle the climate emergency but is also key to generating millions of new American jobs. The National Climate Bank Act takes a model that’s been proven to work and creates an engine to drive innovative climate solutions that will help us build a greener economy and a better future for generations to come. As we work with the Biden Administration to urgently address the climate crisis and secure environmental justice, this effort to spur green innovation must be a top priority,” said Senator Van Hollen.
The legislation would jumpstart clean infrastructure development across the country and serve as a significant contribution to President Joseph R. Biden’s $2 trillion climate investment pledge – the legislation was included in the American Jobs Plan under the name of the “Clean Energy and Sustainability Accelerator.”
An initial federal capitalization of $100 billion would drive $463 billion of total investment in four years, and $880 billion of total investment in 10 years through green banking techniques such as project-level leverage techniques, balance sheet borrowing, capital recycling, and co-investment.
The legislation would create nearly four million jobs in four years and 12 million jobs over the next decade, especially focusing job creation in disadvantaged communities.
Estimates suggest that a capitalization at this scale could reduce cumulative national emissions by over 2.5 billion metric tons over the first 10 years, or roughly 20 percent of the reductions needed to reach net zero emissions by 2050 and avoid the most catastrophic effects of global warming.