At Carbon Washington, we believe the best climate policies are those that both cut carbon emissions and center the people most affected by climate change. Turning those policies into reality takes more than good ideas—it requires the right financial tools. That’s where Washington State’s Green Bank comes in.

The Green Bank helps transform climate policy from promises into action by ensuring that communities most impacted by climate change have access to the resources they need. Green finance isn’t just about funding—it’s about creating opportunities for people to take steps that benefit both their lives and the environment.

To learn more about this work, we spoke with Eli Lieberman, the newly appointed Executive Director of Washington State’s Green Bank, about the future of the institution and how it can help ensure climate solutions are as inclusive and effective as possible.

1. Washington is a leader in climate policy—how can financing tools like the Green Bank help make those policies real on the ground?

Green banks transform climate policies into market opportunities. By strategically deploying public capital to attract private investment, building professional contractor networks, cultivating project pipelines, and creating accessible financing products, they turn ambitious policy goals into completed projects that deliver energy savings, job creation, and community benefits.

The model is proven across diverse states and markets. For example, the Connecticut Green Bank has deployed $3 billion in total investment using only $450 million in public dollars—almost a 7:1 leverage ratio. Michigan Saves, the nation's first nonprofit green bank, has facilitated over $700 million in clean energy projects with a 30:1 leverage ratio of public dollars to private sector investment. At the heart of these programs are user-friendly technology solutions and hands-on technical assistance that allow contractors to make high-efficiency equipment and building materials affordable as an engine for market growth.

Given Washington's world-class climate policies—including the Climate Commitment Act, Clean Building Performance Standard, and the Clean Energy Transformation Act—a properly capitalized Washington State Green Bank could quickly accelerate our state's deployment of clean energy assets.

2. What's one aspect of the Green Bank's work that you think is most misunderstood—or most underestimated?

The most underestimated aspect is the Green Bank's role as a market facilitator. Green banks are not simply financing institutions; they are designed to serve as statewide coordinators that "braid together" multiple funding sources—federal tax credits, utility rebates, state incentives, and private capital—to make climate upgrades truly affordable and accessible. They help contractors, lenders, and consumers navigate the complex landscape of available incentives, dramatically reducing transaction costs and barriers that traditionally prevent people from accessing clean energy investments. Reducing these soft costs will be especially important given recent federal policy changes.

The green bank model is not simply looking to build the bottom line, but rather it is mission driven and focused on climate outcomes. This focus ensures that we will strive to connect individuals at all income levels with public and private funding programs designed to meet their needs, which may include low-interest rate loans or grants.

3. How are you thinking about accessibility for communities that haven't historically benefited from public or private climate investments?

A key mission of the Washington State Green Bank—and green banks nationwide—is developing financing mechanisms that work for underserved communities. Traditional climate financing can exclude people with lower credit scores or limited access to capital. Green banks address this through credit enhancements—essentially loan loss reserves that allow existing community lenders to serve customers with credit scores and debt-to-income ratios below typical risk tolerance. This approach has proven successful, with programs like Michigan Saves’ Home Energy Loan Program reaching diverse communities across Michigan through credit enhancements and non-traditional underwriting strategies that focus on borrowers’ ability to pay rather than FICO scores.

We also want to ensure the Washington State Green Bank builds meaningful relationships in communities by collaborating in program design and implementation. We do not want to parachute into communities that have experienced historic disinvestment with cookie-cutter solutions; we want to define and build them together. This includes rural Washington and Tribal communities that face additional unique barriers to clean energy access, including limited contractor networks, longer travel distances for installations, and fewer financing options.

Eli at the Washington State Green Bank Stakeholder Workgroup held recently in July 2025. Photo Courtesy: Eli Lieberman

4. What kinds of local partnerships are you looking to strengthen or grow in this next chapter?

The local partnerships we're prioritizing as we get started focus on building a collaborative ecosystem for program design and implementation. We plan to strengthen our connections with community-based organizations that span economic development, faith communities, and education. Simultaneously, we'll develop formal partnerships with financial institutions—credit unions, community development financial institutions, and banks—that already serve or want to serve low-to-moderate income communities to expand access to equitable climate financing.

Our second major focus is strengthening municipal partnerships across city, county, and utility lines to move beyond coordination to collaboration on policy development and project identification. We also hope to leverage Washington's incredible clean tech community to help build or implement technology that can braid together multiple funding sources and streamline the complex nature of incentives and rebates, making it easier for all partners—lenders, contractors, and customers—to navigate the clean energy financing landscape.

5. What do you say to someone who doesn't see climate finance as something that affects them directly?

What I love about climate finance is that it's not an abstract concept—it's all about building real projects that save families and businesses money every month. When we help Washingtonians finance energy efficiency upgrades or solar panels to switch off fossil fuels, they're often saving money from day one. We're talking about hundreds or even thousands of dollars in annual savings that go directly back into household budgets. For low-income Washingtonians, where energy burdens can consume over 6% of their income, these savings can free up money for food, medicine, and other necessities.

Beyond the immediate financial impact, climate finance creates tangible benefits in their daily lives. Energy efficiency improvements mean their home stays warmer in winter and cooler in summer. It means better indoor air quality for their family's health, more reliable power during storms, and often increased property values. When we finance clean energy projects in their community—whether it's solar installations or electric vehicle charging stations—we're creating local jobs for their neighbors and strengthening their local economy. This is particularly critical for small and emerging contractors who will need flexible financial resources to build their businesses and meet growing demand for clean energy retrofits driven by Washington’s Clean Building Performance Standards. The ripple effects touch everything from reduced healthcare costs due to cleaner air to enhanced community resilience during extreme weather events that are becoming more frequent and severe.

6. If we fast-forward five years, what would success look like to you—especially in terms of equity and impact?

Five years from now, success would mean we've fundamentally transformed who has access to Washington's clean energy economy and how they participate in it. We'd see at least 40% of our investments and benefits flowing to low-income and disadvantaged communities, with measurable reductions in energy burdens. We would also see thousands of good-paying local jobs created in these same communities and improved public health outcomes from cleaner air and more resilient housing.

Importantly, we'd have achieved financial self-sustainability and hopefully be leveraging public dollars at Connecticut Green Bank levels, which would create an evergreen climate finance ecosystem that continues serving low-income and disadvantaged communities even after programs like the Climate Commitment Act sunset.

Visit the link attached to stay updated on the Washington State Green Bank’s latest efforts.

Financing Climate Action: Q&A with the Green Bank Executive Director