States and municipalities raise money through issuing bonds, but they rarely fund green infrastructure or activities, and they are usually too pricey for most individual investors. But a new bond from Connecticut offers a new way for any investor to support clean energy.
In 2008, the World Bank was the first institution to issue a green bond—a bond designated for environmental and climate projects—and ever since, green bonds have been available from a variety of institutions. However, municipal bonds often require several thousand dollars to invest, making it hard for the average American to participate.
For the past several years, Connecticut raised millions to fund residential solar projects by issuing Green Liberty Bonds. In December 2021, the bank issued a short-term green bond (called a “note”) for $100, to support small business’ energy efficiency, making investing even more accessible to the average person. This Green Liberty Note was offered through FINRA-regulated funding portal Raise Green and closed in January 2022.
“Green America has been encouraging governments at all levels to offer affordable green bonds for investors, and it is great to see Connecticut’s innovative Green Bank taking the lead,” says Todd Larsen, Green America’s executive co-director for consumer & corporate engagement.
Green America proposed this idea to Connecticut and several other states beginning in 2012. We are excited to see the green bond come to fruition. Connecticut Green Bank partnered with Amalgamated Bank{GBN}, a Green America ally, on the bond.
Connecticut’s Green Bank will next issue a Green Liberty Note on Earth Day 2022. Learn more at greenlibertybonds.com.
