NY Climate Week: Green lending symposium gathers project finance innovators in one room

Sustainable infrastructure lending is a complex corner of the finance world. Though private capital holds more available finance than its public counterpart, private investors have historically been wary of infrastructure investment overall. However, with federal programs like the Inflation Reduction Act — and specifically its $27-billion Greenhouse Gas Reduction Fund (GGRF) — designed to ease this hesitation, there is ample opportunity for public dollars to mobilize private capital and, together, fund the world’s energy transition and sustainable infrastructure buildout.

At New York Climate Week, that spirit of collaboration was on full display across not only public lenders and private financiers but also technologists, nonprofit organizations, and more. Last month, about 160 attendees joined the Rethinking Finance symposium co-hosted by Banyan Infrastructure, GreenPortfolio, and Rise, created by Barclays to explore the next frontier in climate-conscious finance, the near-term evolution of climate lending and investing, and the important intersection of climate action and fintech. 

The program — one of only a handful at Climate Week featuring conversations focused on the GGRF — included three candid discussions with industry leaders in public and private finance. Audience members encompassed a diverse range of stakeholders in the project finance process, from CDFI and green bank representatives to Wall Street bankers, climate investors, community nonprofits, fintech founders, and more. Across the board, the project finance innovators in attendance were eager to understand how they could best maximize the promise of green lending for public and private financiers, sustainable infrastructure operators, and everyday Americans alike.

“It was so exciting to see so many people join the conversation,” said Amanda Li, COO, Co-Founder of Banyan Infrastructure. “Standardizing and streamlining the project finance industry will take all players working together to direct as much capital as possible, as quickly as possible, toward solutions and the communities that need them most. We’re so happy to be able to have the entire ecosystem in one room, listening and learning from one another.”

As the GGRF gets underway, there will undoubtedly be more challenges to navigate — and innovative solutions to leverage — as lenders bring this historic program to life and accelerate the growth of the country’s sustainable infrastructure market. More collaborations among project finance players, like this symposium, will be a key ingredient in orienting the industry toward success. Banyan Infrastructure is grateful to GreenPortfolio and Rise, created by Barclays, for their partnership on this event, and we look forward to more industry-leading conversations in the future.

Optimizing Green Lending with Technology

To accelerate green finance programs, investors and lenders can leverage best practices and fintechs to maximize impact and efficiency. In this session, climate fintech players and lenders spoke about their digital strategies, how to navigate the complexity of public financing programs like the GGRF, and what types of wraparound services are necessary to help connect financiers with qualified projects. Technology is a particularly critical tool for developing standards as lenders work to transform a market known for its “bespoke” projects into a more formalized and fast-moving operation. In fact, lenders already have access to ample data; the next step is using digital tools to turn that information into actionable insights that drive the sustainable infrastructure market forward.

Speakers:

Lynn von Koch-Liebert (Head of Climate, Energy & Infrastructure, Lendistry)

Rachel Halfaker (Associate Director 10,000 Communities Initiative, Milken Institute)

Damon Burns (CEO, Finance New Orleans)

Alexander Shermansong (Partner, SURE, an Inclusive Prosperity Capital & Housing Partnership Network Company)

Moderator:

Beatriz Da Cunha (Head of Sustainable Finance Strategy Execution, Barclays)

Conscious Capital: Transforming Finance for the Next Generation

This panel discussion delved into the critical need for the finance industry to adapt to the unique requirements and preferences of the next generation of clients. Exploring how to build a financial ecosystem that resonates with millennials, the discussion revolved around reimagining this industry for a 21st-century clientele of digital natives who are passionate about aligning their finances with their values.

Speakers:

Bonnie Gurry (CEO and Co-Founder, GreenPortfolio)

Ravi Mikkelsen (Co-Founder and CEO, ATMOS Financial)

Rodrigo Garcia (CEO & Co-Founder, Suyana)

Kellen Parker (Director - Sustainability Data & Insights, Ethic)

Moderator:

Matt Spence (Global Head of VC Banking, Barclays)

Climate Collaboration between Wall Street and Main Street

As new green lending programs like the GGRF proliferate, private capital plays a key role in magnifying the total dollars invested, creating secondary markets, and elevating the total impact of these funds. This conversation zeroed in on how to make a market in distributed green lending, and specifically how CDFIs, green banks, and nonprofit lenders can and must work together with private lenders to mobilize additional capital for sustainable infrastructure. While public capital has long understood how to work with government financing, the GGRF underscores an emerging — but manageable — hurdle in green lending: lowering the cost of capital enough to entice private investors. Thoughtful solutions like blended finance and vital relationship building across the Main Street-Wall Street divide will be key ingredients in bridging the gap between public and private stakeholders and maximizing the promise of these new government investments. 

Speakers:

Desiree Thomas (Vice President & Director of Climate Finance, TruFund)

Tony Berkley (Chief Development Officer, Opportunity Finance Network)

Katelyn Meehan (Director, Wells Fargo)

Genevieve Sherman (Head of Sustainability & Policy, Nuveen Green Capital)

‍