{"id":25278,"date":"2023-02-23T11:37:44","date_gmt":"2023-02-23T19:37:44","guid":{"rendered":"https:\/\/occupysf.net\/?p=25278"},"modified":"2023-02-23T11:37:46","modified_gmt":"2023-02-23T19:37:46","slug":"will-san-francisco-embrace-a-green-bank","status":"publish","type":"post","link":"https:\/\/occupysf.net\/index.php\/2023\/02\/23\/will-san-francisco-embrace-a-green-bank\/","title":{"rendered":"Will San Francisco embrace a \u2018green bank\u2019?"},"content":{"rendered":"\n<ul><li>Feb 21, 2023\u00a0Updated\u00a015 hrs ago  (SFExaminer.com)<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/www.sfexaminer.com\/users\/profile\/Jessica%20Wolfrom\"><img decoding=\"async\" src=\"https:\/\/bloximages.chicago2.vip.townnews.com\/sfexaminer.com\/content\/tncms\/avatars\/a\/a7\/dfa\/aa7dfaca-d70b-11ec-ad87-af67288b9668.eacc8b82f0d108820f731b214fda2b2a.png?_dc=1654126525\" alt=\"Jessica Wolfrom\"\/><\/a><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><a href=\"https:\/\/www.sfexaminer.com\/users\/profile\/Jessica%20Wolfrom\">Jessica Wolfrom<\/a><\/h4>\n\n\n\n<p><em>Jessica is a climate reporter at The San Francisco Examiner.&nbsp;<\/em><\/p>\n\n\n\n<ul><li><a rel=\"noreferrer noopener\" href=\"https:\/\/twitter.com\/jessicawolfrom\" target=\"_blank\">Author twitter<\/a><\/li><li><a href=\"mailto:jwolfrom@sfexaminer.com\">Author email<\/a><a href=\"https:\/\/www.sfexaminer.com\/content\/tncms\/live\/#1\"><\/a><\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/www.sfexaminer.com\/content\/tncms\/live\/#1\"><img decoding=\"async\" src=\"https:\/\/bloximages.chicago2.vip.townnews.com\/sfexaminer.com\/content\/tncms\/assets\/v3\/editorial\/0\/6d\/06dc55e6-066e-5a5e-b8fb-2c02a20bb111\/628e6804ea7f0.image.jpg?resize=750%2C500\" alt=\"Climate activists follow fossil fuel money to Wells Fargo\u2019s front door\"\/><\/a><\/figure>\n\n\n\n<p>Extinction Rebellion protesters outside Wells Fargo headquarters in San Francisco carry signs referencing climate disasters. Many of the world\u2019s top banks are still heavily invested in the oil and gas industry, despite growing calls to rein in lending to help tackle climate change.<\/p>\n\n\n\n<ul><li>Examiner file<a href=\"https:\/\/www.sfexaminer.com\/content\/tncms\/live\/#2\"><\/a><\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/www.sfexaminer.com\/content\/tncms\/live\/#2\"><img decoding=\"async\" src=\"https:\/\/bloximages.chicago2.vip.townnews.com\/sfexaminer.com\/content\/tncms\/assets\/v3\/editorial\/d\/d7\/dd79afbe-5410-540b-85ea-411894451ea6\/628e68059e3cc.image.jpg?resize=750%2C500\" alt=\"Climate activists follow fossil fuel money to Wells Fargo\u2019s front door\"\/><\/a><\/figure>\n\n\n\n<p>Extinction Rebellion demonstrators rallying at Wells Fargo headquarters in September 2021. San Francisco is examining the viability of a green bank that would provide capital for city projects that benefit the climate.<\/p>\n\n\n\n<ul><li>Jessica Wolfrom\/The Examiner<\/li><\/ul>\n\n\n\n<p>The private banking system has left some San Franciscans behind. That\u2019s why The City is taking steps to roll out a new public bank that would prioritize investing in affordable housing, small businesses and green infrastructure to ensure low-income residents and low-margin businesses get the loans they need to thrive.<\/p>\n\n\n\n<p>But as The City moves closer to&nbsp;<a href=\"https:\/\/sfgov.org\/lafco\/sites\/default\/files\/rwg021623_PublicBank-DRAFT.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">establishing a public bank<\/a>&nbsp;\u2014 defined as a financial institution that is owned and managed by the government in the public interest \u2014 the challenges of how to disentangle The City\u2019s reliance on private banks and foster an equitable transition across its energy, housing and transportation sectors have surfaced, including questions of how to pay for San Francisco\u2019s ambitious climate plan, which is expected to cost nearly $22 billion.<\/p>\n\n\n\n<p>\u201cPublic banks, in general, are experiencing a renaissance,\u201d said Thomas Marois, a political economist at the SOAS University of London. \u201cAnd much of that now is tied to this question of how we finance the climate transition.\u201d<\/p>\n\n\n\n<p>The aim of San Francisco\u2019s public bank is to make up for decades of racial discrimination by the private banking industry, including the practice of redlining and the refusal to underwrite loans for small business owners, while also reducing pollution burdens in disadvantaged communities by slashing emissions.<\/p>\n\n\n\n<p>Versions of public banking institutions have been around since the 1400s, noted Marois, and many flourished following World War II. \u201cPublic banks became one of the more dominant ways by which a society could gather its financial resources and savings \u2014 and then use those for various forms of community development, agricultural development, infrastructure, import exports and small trades \u2014 you name it,\u201d he said.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><a href=\"https:\/\/www.sfexaminer.com\/news\/can-san-francisco-save-the-bay\/article_53f6e53a-ad85-11ed-8221-7b88023d1b77.html\">&nbsp;Can San Francisco save the bay?<\/a><\/h5>\n\n\n\n<p>But in the postwar era and increasingly during the Cold War, much of the world has leaned on the private sector to solve its problems, noted Marois, which slowed the transition away from fossil fuels and created vast inequities in its wake. \u201cWhat\u2019s killing the climate transition is this fiduciary duty to maximize returns and protect the capital of shareholders,\u201d said Marois.<\/p>\n\n\n\n<p>Not to mention that many of the world\u2019s top banks are still heavily invested in the oil and gas industry, despite growing calls to rein in lending to help tackle climate change. In 2021, the world\u2019s top banks provided $742 billion in finance to the fossil fuel industry,&nbsp;<a href=\"https:\/\/www.google.com\/url?q=https:\/\/www.reuters.com\/business\/sustainable-business\/worlds-top-banks-pumped-742-bln-into-fossil-fuels-2021-report-2022-03-30\/#:~:text=Overall%20lending%20to%20the%20fossil,over%202021%2C%20the%20report%20said.&amp;sa=D&amp;source=docs&amp;ust=1677026407593850&amp;usg=AOvVaw32xwUyLMX9L3w2m-R2mdqd\" target=\"_blank\" rel=\"noreferrer noopener\">Reuters reported<\/a>.<\/p>\n\n\n\n<p>Last week, the body tasked with rethinking San Francisco\u2019s banking system also examined the&nbsp;<a href=\"https:\/\/sfgov.org\/lafco\/sites\/default\/files\/rwg021623_GreenBankMemo.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">viability of establishing a green bank<\/a>&nbsp;that would operate in the purview of San Francisco\u2019s future public bank and provide capital for city-wide projects that cut greenhouse gas emissions, including loans to decarbonize the city\u2019s building stock, which represents nearly 40% of its carbon footprint.<\/p>\n\n\n\n<p>But while the public bank process has been years in the making, the need for a green bank may be much more pressing.&nbsp;<a href=\"https:\/\/www.law.berkeley.edu\/wp-content\/uploads\/2022\/11\/Funding-San-Francisco-Climate-Action-Nov.-2022.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">A recent report from UC Berkeley<\/a>&nbsp;recommended standing up a green bank to capture the historic climate funding passed by the Biden Administration last year to help fund The City\u2019s Climate Action Plan.<\/p>\n\n\n\n<p>\u201cWe\u2019re in the middle of this unprecedented release of funds for climate action,\u201d said Jackie Fielder, co-founder of the San Francisco Public Bank Coalition. \u201cAnd all those federal funds have to be dispersed by September 2024.\u201d<\/p>\n\n\n\n<p>Still, questions remain about how a green bank could take advantage of the&nbsp;<a href=\"https:\/\/www.epa.gov\/newsreleases\/epa-announces-initial-program-design-greenhouse-gas-reduction-fund\" target=\"_blank\" rel=\"noreferrer noopener\">$27 billion in climate-related grants<\/a>&nbsp;that Congress approved as part of Biden\u2019s Inflation Reduction Act. The report created for The City\u2019s Reinvestment Working Group noted that regulated public banks are ineligible to participate in the Greenhouse Gas Reduction Fund, which houses the grants.<\/p>\n\n\n\n<p>But a green bank could exist without its public counterpart, noted Tyrone Jue, acting director of San Francisco\u2019s Department of Environment. \u201cSetting up a green bank, which might be thought of as a revolving loan, might not require the full public-bank kind of institution,\u201d said Jue.<\/p>\n\n\n\n<p>\u201cA green bank can be something that we create literally tomorrow if San Francisco wanted,\u201d said Fielder.<\/p>\n\n\n\n<p>This points to the important distinction between public and green banks, noted Ted Lamm, a senior research Fellow at UC Berkeley\u2019s Center for Law, Energy &amp; the Environment. While a public bank represents a monumental shift in how the city would manage its finances, he said, a green bank is basically a mechanism to incentivize green projects.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><a href=\"https:\/\/www.sfexaminer.com\/news\/climate_change\/how-bay-area-concrete-could-offer-climate-change-solutions\/article_669b6a54-a988-11ed-8b34-2fe513e5cdf1.html\">&nbsp;How Bay Area concrete could offer climate change solutions<\/a><\/h5>\n\n\n\n<p>\u201cA green bank takes a very small slice of public funds and holds them in reserve for eligible entities to access if needed,\u201d said Lamm. \u201cThe whole point is to draw in capital from private financial institutions because you can get a lot more money that way.\u201d<\/p>\n\n\n\n<p>In other words, a green bank can be a backstop for larger lenders to mitigate risk and maximize equitable investments in green projects. \u201cWhat the green bank does is it allows you to kind of target middle and lower income communities to offer them financial options that wouldn\u2019t necessarily be available due to generally higher risk,\u201d said Jue.<\/p>\n\n\n\n<p>For now, though, San Francisco\u2019s dream of a green bank remains just that, with many questions lingering about how it would function and who would oversee it.<\/p>\n\n\n\n<p>\u201cWhere would a green bank live? Who\u2019s in charge of it? One of the mechanisms of transparency and accountability? How do we make sure that equity is baked into the governance structure? How do we ensure that disadvantaged communities in San Francisco see the benefits first?\u201d said Fielder. \u201cObviously, there are challenges around the current budget, for example,\u201d she said, noting the souring economic climate.<\/p>\n\n\n\n<p>But, Marois said, money isn\u2019t the issue; it\u2019s getting San Franciscans to trust the government to run their bank. \u201cThere\u2019s lots of money around, and there are lots of people who want to do stuff on green lending,\u201d he said. \u201cMoney is not the problem. The challenge is just getting over the logical barrier to this notion of a public bank being effective, accountable, transparent and better, frankly than a private bank.\u201d<\/p>\n\n\n\n<p>With private banks, he said, \u201cwe might well get a green transition. But unless we\u2019re able to shape the terms of that democratically, it\u2019s not going to be just. We must have more community say over our own financial resources. So we simply have to build an alternative. And that means democratic public banks. Period.\u201d<\/p>\n\n\n\n<p><a href=\"mailto:jwolfrom@sfexaminer.com\">jwolfrom@sfexaminer.com<\/a><\/p>\n\n\n\n<p>@jessicawolfrom<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Feb 21, 2023\u00a0Updated\u00a015 hrs ago (SFExaminer.com) Jessica Wolfrom Jessica is a climate reporter at The San Francisco Examiner.&nbsp; Author twitter Author email Extinction Rebellion protesters outside Wells Fargo headquarters in San Francisco carry signs referencing climate disasters. Many of the world\u2019s top banks are still heavily invested in the oil&#8230; <a class=\"continue-reading-link\" href=\"https:\/\/occupysf.net\/index.php\/2023\/02\/23\/will-san-francisco-embrace-a-green-bank\/\"> Continue reading <span class=\"meta-nav\">&rarr; <\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[145,21],"_links":{"self":[{"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/posts\/25278"}],"collection":[{"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/comments?post=25278"}],"version-history":[{"count":1,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/posts\/25278\/revisions"}],"predecessor-version":[{"id":25279,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/posts\/25278\/revisions\/25279"}],"wp:attachment":[{"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/media?parent=25278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/categories?post=25278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/tags?post=25278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}