US green banks keep financing clean energy after federal funding cuts

Green banks use public money to help finance clean energy and climate projects that private lenders may consider too risky.

In the United States, 48 green banks reported putting about $1.4 billion of their own money and $11 billion in private funds into more than 40,000 projects in 2024 and 2025.

Together, the projects involved $12.4 billion in financing.

Federal climate funding cuts under the Trump administration have forced green banks to reduce plans made during the Biden administration.

One affected partnership, Climate United Fund, had been awarded $7 billion, but its funds were frozen.

Green banks are seeking money from commercial banks, credit unions, companies and philanthropic groups to keep projects moving.

They still have about $6.8 billion in projects in their funding pipelines, but say some higher-risk work is now out of reach.

Their aim is to help prove projects can work so private lenders can finance them later.