Green banks are bridging capital gaps to fund clean energy, electrify communities, and build local climate resilience.
By AB Wire
At a time when climate action demands both innovation and scalable financing models, green banks are emerging as vital players in the clean energy transition. At “Startup Bazaar: DC Climate Week,” hosted by The American Bazaar at the Hopkins Bloomberg Center in Washington, DC, on April 29, a compelling panel explored how these institutions bridge the gap between public purpose and private capital to drive sustainable infrastructure and clean energy innovation.
Moderated by Bhagyashree More, ESG Reporting and Compliance team member at FedEx, the conversation featured two prominent voices in climate finance: Chris Cucci, Executive Vice President and Chief Strategy Officer of Florida-based Climate First Bank, and Rokas Beresniovas, Senior Director of Commercial Business & Climate Finance at Montgomery County Green Bank.
This edition of Startup Bazaar was part of DC Climate Week, which concluded last week. Beresniovas opened the discussion—titled “Financing the Future: How Green Banks Are Powering the Clean Energy Transition”—by explaining the role and structure of green banks.
Green banks are unique financial institutions designed to leverage public and philanthropic funding to mobilize private capital toward climate-positive projects, he said.
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Montgomery County Green Bank, he noted, is the first county-wide green bank in the country. “Our mission is to leverage that funding and work with the private sector to attract more capital,” he said. He emphasized that while some green banks are government-run, others are nonprofit or public-private partnerships.
Cucci added that while his institution, Climate First Bank, is a full-service, FDIC-insured bank, it differs from traditional banks by operating through an environmental and social impact lens. The bank offers services like home and Small Business Administration loans, but with a focus on financing renewable energy projects, green buildings, and social impact initiatives such as affordable housing and early childhood education.
More asked Cucci how green banks serve as catalysts for innovation in the climate sector. He stressed the regulatory limitations traditional banks face, which make them risk-averse. “Innovative startups sometimes trouble banks,” he said, adding that banks prefer “predictable, boring, kind of cookie-cutter” models. Green banks, by contrast, are more flexible and able to support earlier-stage companies or ventures in emerging areas.
Beresniovas emphasized that green banks do not aim to replace private capital but rather de-risk transactions to enable commercial lenders to participate. “Our role is really to de-risk the transactions where conventional banks don’t feel quite comfortable,” he said.
The conversation turned to the challenges faced by green startups and how green banks can help. Cucci pointed to two avenues: technical assistance and local knowledge. He called green banks “boots on the ground” that understand community-specific needs, programs, and policies. He emphasized that a one-size-fits-all model doesn’t work for climate tech: “Everything is won and lost on understanding that local market.”
Beresniovas agreed, highlighting the importance of identifying state and utility incentives. He said green banks often subsidize the cost of accessing these funds and have the network to connect startups with technical contractors.
Cucci gave a recent example of collaboration between Climate First Bank and Montgomery County Green Bank to electrify food trucks. “There was a state grant… the funds were allocated toward electrification,” he said. The green bank lacked staff and technical infrastructure, so Climate First Bank adapted its existing fintech platform to administer the loans. Beresniovas added that 25 food trucks are participating in the first pilot.
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Addressing how green banks can help businesses stay adaptable, Cucci stressed the importance of understanding local needs. He also noted that national efforts like the Coalition for Green Capital operate as consortiums, reinforcing the idea that local knowledge is key.
Beresniovas noted that while the concept of green banks is mature internationally, it’s still evolving in the U.S. “Even with us, we were established in 2016, but we’re not capitalized until about four years ago,” he said. Since then, Montgomery County Green Bank has gone from $3 million to $250 million in project finance.
Cucci clarified that green banks operate more at a programmatic level than as startup incubators. “When you go to a green bank… it’s going to be more of the programmatic level,” he said. Green banks are ideal partners when startups have a product ready for deployment, not when they need working capital or R&D funding.
Asked how green banks can scale innovations beyond traditional energy sectors, Beresniovas said they remain open to new ideas, provided the projects align with the mission of decarbonization. “We always look at what is the impact,” he said.
On opportunities in agriculture, transportation, and waste management, Beresniovas noted that sectors like energy efficiency and EV infrastructure are becoming mainstream. He expressed excitement about the growth of resilience-focused finance, such as flood mitigation and nature-based solutions.
When it came to building long-term resilience, Cucci pointed out that this is a “cutting edge area” still lacking a proven financing model. He said banks like his watch green banks and nonprofits for leadership in this space. “We really look closely at what the green banks… are doing when it comes to resilience,” he said.
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Beresniovas explained that Montgomery County Green Bank receives 10% of the energy fuel tax annually, equating to $18-$22 million. Its goal is to leverage this four or five times through partnerships. He described a typical $10 million transaction where the green bank provides $2-$4 million at subsidized rates, and partners supply the rest at market rates.
Cucci added that in some cases, projects need credit enhancements to proceed. “We also talk to partners like a green bank… for what we refer to in lending as a credit enhancement,” he said, explaining tools like loan loss reserves or forgivable loans. These mechanisms help de-risk transactions without always focusing on price.
The panel then discussed support for emerging markets. Cucci said Climate First Bank is primarily domestic but participates in global networks like the Global Alliance for Banking on Values. “People gravitate towards us because they care about what their money is doing in the bank,” he said.
On measuring impact, Cucci acknowledged challenges with standardization and reporting. He said impact metrics help banks communicate with customers, regulators, and investors. “Impact measurement is one of the key ways we can… tell that story of impact,” he said.
Beresniovas added that without measurable impact, Montgomery County Green Bank cannot fund projects. He cited an example where a developer claimed a project was “green,” but couldn’t demonstrate energy savings above the county’s strict code. “We’re looking for additionality,” he said.
Asked about future trends, Cucci highlighted AI’s dual potential as a tool for climate innovation and a driver of increased energy demand. He also expressed hope for continued progress in solar panel recycling and battery storage.
Beresniovas closed by describing a successful pilot with Climate First Bank offering 0% interest solar loans in equity emphasis areas. Cucci noted that the program also includes roof replacement, which is especially impactful for low-income homeowners. “It could be life-changing for people,” he said.
The panel underscored that while climate finance is still evolving, partnerships between private banks and green banks are proving vital in pushing the clean energy transition forward.
The inaugural DC Climate Week, held from April 28 to May 2, brought together dozens of events spread across six main hubs and several other venues throughout the Washington, DC, area.