Green Revolving Loan funds are a transformative tool to help reduce green house gas emissions, fuel the green economy while pushing a municipality's sustainability agenda forward. North Cowichan's Climate Action and Energy Reserve Fund is an example of an innovative Green Revolving Loan Fund that is designed to help the municipality implement it's Climate Action and Energy Plan. The Climate Action and Energy Plan was adopted by North Cowichan Council on February 20, 2013. This fund creates a financial vehicle to supply innovative and sustainable community and municipal projects with finanacial capital to help achieve the GHG targets. The Fund is established by a 0.5% annual tax levy, providing approximately $225,000 per year.
The fund contains two basic criteria:
- to finance measures that reduce resource use (e.g. energy, water, materials) or mitigate carbon emissions (e.g. renewable energy developments); and
- secondly, that the fund revolves from savings generated by reducing operating costs that will replenish the fund to provide capital for future projects.
Successful applications are based upon a strong business case for their idea. They need to be innovative and collaborative to align with the Implementation Framework laid out in the Plan. Likewise, the Fund supports the same prioritization criteria as was in the Plan, with preference given to actions that support green jobs, furthers economic development and mobilizes the public.
Green Revolving Loan Funds are increasingly being established by municipalities across the country, and recognized as a systematic leverage point to support sustainability initiatives while helping to address climate change.