Frequently Asked Questions | CGC

Question 1

What experience does CGC bring to its work?

Accepted Answer

CGC brings over a decade of experience in green bank financing and clean energy investment. For detailed information about our history and team expertise, visit our history page and staff page.

Question 2

How does CGC finance its investment activities?

Accepted Answer

CGC received significant capitalization funding through the Greenhouse Gas Reduction Fund for its investment activities, with $5 billion awarded under the National Clean Investment Fund program in 2024. We deploy this capital alongside significant private-sector co-investment and, in some cases, complementary philanthropic capital to extend reach and impact. Our investments generate repayments that allow capital to be recycled and redeployed, supporting a self-sustaining model over time.

Question 3

Who does CGC work with?

Accepted Answer

We work with a wide range of partners, including developers, lenders, investors, green banks, municipalities, community lenders, and nonprofits. Across all programs, our shared objective is market transformation that mobilizes private capital and delivers durable public benefits.

Question 4

What type of entity is CGC and how does it deploy capital?

Accepted Answer

CGC is a mission-driven investment firm that collaborates across the public and private sector to transform markets, mobilize capital, and build an economy that benefits all Americans. For more details, visit our About Us and Understanding our Model pages.

Question 5

What types of projects does CGC typically finance?

Accepted Answer

CGC finances clean energy, energy efficiency, battery storage, water infrastructure, and resilient infrastructure projects. For detailed information about our investment portfolio, visit our investments page.

Question 6

What is a Qualified Project?

Accepted Answer

Qualified Projects are projects, activities, or technologies that: reduce or avoid greenhouse gas emissions; reduce or avoid other air pollutants; deliver additional benefits in the categories of climate change, clean energy and energy efficiency, clean transportation, affordable and sustainable housing, training and workforce development, remediation and reduction of legacy pollution, and/or development of critical clean water infrastructure; may not have otherwise been financed; mobilize private capital; and support only commercial technologies.

Question 7

Where does CGC invest?

Accepted Answer

CGC invests in projects located anywhere in the United States.

Question 8

What forms of financing are available?

Accepted Answer

CGC primarily provides structured credit financing across the capital stack, including preferred equity with debt-like features. Typical tenors are three to eight years, including mini-perm structures for longer-dated assets. Financing is structured on market-based terms and may be fixed or floating rate, with credit enhancements aligned with project risk.

Question 9

Does CGC offer grants as part of its work?

Accepted Answer

For information about grants and other financing options, please visit our investments page.

Question 10

How does CGC ensure the economic, health, and environmental benefits of its investments reach all Americans?

Accepted Answer

Our investment strategy prioritizes projects that deliver measurable environmental and public health improvements while expanding access to affordable energy. We partner closely with developers, local green banks, community lenders, and other trusted intermediaries, design customer-focused financing solutions, and systematically track impact metrics to ensure benefits reach communities across the country.

Question 11

How are green banks structured?

Accepted Answer

Green banks come in a variety of structures: some are public or quasi-public entities, while others operate as independent nonprofits—but all are mission-driven institutions that deploy innovative financing to serve people, markets, and the environment.

Question 12

How are green banks funded?

Accepted Answer

Green banks typically start with public seed funding, whether appropriated through legislation or awarded through a grant. They grow by blending public, private, and philanthropic capital to finance projects that traditional lenders often overlook. Over time, green banks become financially self-sufficient.

Question 13

What's the difference between public, quasi-public and non-profit green banks?

Accepted Answer

Public green banks are created and operated by government, which provides strong oversight but less flexibility to respond quickly to market conditions, while quasi-public and nonprofit green banks are more independent: quasi-public institutions are government-created but operate with private-sector agility, and nonprofit green banks are privately governed and offer the greatest flexibility to meet market needs.

Question 14

Is a green bank like a traditional bank?

Accepted Answer

No. A green bank is a mission‑driven financial institution that design financing to invest in clean energy, energy efficiency, battery storage, water, and resilient infrastructure.

Question 15

How do green banks differ from grants?

Accepted Answer

Grants are one-time spending. Green bank use financing and revolve dollars so as loan repayments come back, they can be reinvested, allowing the same public and philanthropic capital to support many generations of projects. Most green banks use grants as seed funding to kickstart their operations and as catalytic tools to pilot new technologies or financial products until there's enough data and performance history to attract private capital.

Question 16

Do green banks replace private capital?

Accepted Answer

No. They enable it—by reducing risk and standardizing products so private lenders can participate and bring project deployment to scale.

Question 17

How can I get connected with organizations in CGC's network?

Accepted Answer

To get connected with organizations in CGC's network, please use our contact form.

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