GreenBonds News
- The Big Green Fix
- Commentary by Jack Uldrich and reprinted here courtesy of Jump the Curve. President Obama’s inaugural speech resonated with Americans of all political stripes and persuasions for a number of reasons Green bonds address both shortcomings ...
- Introduction to Savings Bonds
- There are two main types of bonds offered I Bond earnings are added every month and interest is compounded semiannually The Series EE bond replaced the E bond, which is the one most associated with World War II war bonds ...
- War bond
- In 1941, in an effort to control inflation, the US Treasury began marketing the new Series E bonds US Savings Bonds as "defense bonds" The government used the hype of the war to market the bonds to the country as a way to raise money for the war, when in fact they were used to remove money from the economy to control inflation ...
About Green Bonds
Background
The historic election of Barack Obama is not only evidence of America’s readiness for change, but it also demonstrates that we can build success from the bottom up. Ordinary Americans want to be part of the solution to the challenges we face and are asking for tangible opportunities to help restore our great nation. President Obama has made a commitment to strategically invest $150 billion over the next ten years to catalyze private efforts to build a clean energy future. This paper describes one piece of the solution to that investment challenge.
The concept – Establish a renewable source of national and local investment capital for green technologies and solutions by introducing a new federal savings bond program – Green Bonds – modeled after the World War II era ‘War Bonds’ program.
The Problem:
- Limited research and development investment capital is available for incubating green technologies and solutions
- American intellectual capital is disconnected from economic capital
- Americans are saving more money but there is no vehicle for efficiently returning that money to the economy since banks aren’t lending
- Volatile stock market leaves Americans looking for ‘safe’ investment opportunities
The Opportunities:
- Groundswell of support for change in the United States
- Americans want to know what they can do to help this country get ‘back on track’
- President Obama financed his campaign with the largest network of small contributors in history
- President Obama has a contact list of over 13 million people – very nearly four percent of the total US population – to whom he could appeal
The Solution:
Americans (Obama’s small investors) will purchase Green Bonds over four years to generate a source of investment capital for green technologies, practices and solutions. Green Bonds will be sold at 75 percent of their face value in denominations of $25 up to $10,000, with some limitations. Limitations might include prohibiting a secondary market for the bonds, penalty for early redemption and making bonds available for sale only to individuals who are U.S. citizens – no corporate / business purchases. Green Bonds are actually a loan from the American people to the United States government to help finance national and local environmental efforts. The bonds will be available for purchase for four years and will yield a 2.9 percent return (below the current market rate of 3.66 percent) after a ten-year maturity. Even though Green Bonds offer a rate of return below the market value of other bond instruments, the program represents a moral and financial stake in the national effort to protect our planet and grow the economy with sustainable green practices and products.
