Amid the current mess the financial industry is in, democratic congressman Chris Van Hollen of Maryland thinks this is the right time to create an independent, tax-exempt US-owned bank that will provide a range of green financing support.
The Congressman introduced last week the Green Bank Act of 2009 that would fund clean energy and energy efficiency projects within US. The bank will have an initial capital of $10 billion through the issuance of Green Bonds by the Department of Treasury, with a maximum authorized limit of $50 billion in Green Bonds outstanding at any one time.
He emphasized that it will operate at the highest levels of efficacy, accountability and transparency. Depends on who's going to handle the bank I'd say...remember Madoff??
The week before, Congressman Van Hollen also introduced the National Home Energy Savings Revolving Fund Act, which will enable over one million households across the country to save money and make their homes more energy efficient.
The Coalition for Green Bank (CGB) is definitely happy with this news and said that the funding will facilitate private investment in the green economy and create up to 1.5 million new and permanent jobs.
Billion dollar taxpayer funds in the hands of the financial industry again...I guess trust have to start somewhere. This might be better than just giving bailout funds to keep banks afloat.
In another financial news, an Aruba Exempt Corporation just launched a new financial private exchange called GREENDAQ geared to be the world's first global equity and commodities exchange focusing on the green sector.
"GREENDAQ ® was created to provide a missing mechanism in the marketplace. Our goal is to fund compelling -- and qualified - innovative Green Companies while providing qualified investors' access to the first global green centric exchange, including creating new classes of Green commodities," said Andrew McLean, CEO and Founder of GREENDAQ®.Investors must apply (for fee) to become members of the exchange, which hopes to have 10,000 investment professionals registered by the end of its first year.
According to this Reuters report, McLean expects the minimum investment for equity offerings will be about $100,000.