Frequently Asked Questions

What are Green Bonds?

Federally guaranteed savings bonds that mature in ten years at a 2.9 percent interest rate compounded annually.

Are Green Bonds a good investment?

The bonds will be federally guaranteed and, while the 2.9 percent interest rate will not generate as high a return as some other investment instruments, your return will be greater than the current rate for 6-month, 1-year and 2-year CDs as well as the current money market and bank savings account interest rates.

Why not just put my money under a mattress and wait until the economy gets healthier?

Keeping investment capital out of the economy will not bring us closer to the goal of reducing our reliance on fossil fuels.  Saving our money in CDs and banks also will not bring us closer to the goal.  We need to generate new investment capital that can be quickly and responsibly re-invested in solutions to the problems facing our nation and our planet.

Who can buy Green Bonds?

Everyday American citizens.

Why would I want to buy Green Bonds?

Because ‘we the people’ ARE the government – Green Bonds are a real way for everyday Americans to participate in the work of restoring our planet to health for the sake of our children and grandchildren.

When can Americans start buying Green Bonds?

Just as soon as the will of the American people is great enough to convince our elected leaders to establish the program.

Will Green Bonds help the baby polar bears?

New capital raised through the sale of Green Bonds will be invested in people and companies who have cutting edge ideas for products and processes that will reduce our dependence on fossil fuels and combat global warming.  If other countries around the globe also established programs like Green Bonds and together we pooled some of the investment capital, we could make a huge impact on restoring the health of our planet and yes – save those baby polar bears.

Will Green Bonds create new jobs?

Yes, new jobs will be created with capital raised from the sale of Green Bonds.  Not only will jobs be created in the manufacturing industry through the development of new green products, but also new jobs will be created in the service sector.

What will happen to the capital generated by the sale of Green Bonds?

The capital will be made available regionally and locally throughout the United States in the form of grants and low-interest or no-interest loans to finance green products, processes, technologies and solutions.

Who will be eligible to receive loans and grants using the capital generated by the sale of Green Bonds?

Individuals, small businesses, cottage industries, nonprofits, faith-based communities, re-use centers, corporations, cities, counties, states, consortiums, universities and colleges, schools and school districts, etc.

How much will Green Bonds cost?

A $25 Green Bond will cost $18.75 and will mature to its full value of $25 in ten years.
A $10,000 Green Bond will cost $7,500 and will mature to its full value of $10,000 in ten years.

Where is the money going to come from to pay off the matured bonds in ten years?

Low-interest loans will be paid back over time.  A low-interest loan of $25,000 will be paid back over ten years at 5.25%.  The total amount paid back will be $41,702.  $25,000 worth of Green Bonds at 2.9 percent will be worth $33,273 after their ten-year maturity.  The difference between $41,702 – the amount paid back by the recipient of a Green Bond loan – and the value of the Green Bonds ($33,273) is $8,429.  The $8,429 goes back into the Green Bond capital pool and is available for another loan.  And the $33,273 goes back to the person who bought the Green Bonds in the first place.  No-interest loans will also be paid back over ten years and since no interest was charged, a minimal share of the business/product will be held in the Green Bond capital pool to offset the value of matured Green Bonds.  Grants will not be paid back, per se, but a share of the business/product revenue will be held in the Green Bond capital pool to offset the value of matured Green Bonds capital that was used to underwrite the grant.

Who will make the initial loans and grants of capital raised through the sale of Green Bonds?

The Environmental Protection Agency (EPA) will receive a share of the Green Bond capital and redistribute that capital in the form of grants and loans through its regional offices according to the amount of money generated by the sale of Green Bonds state-by-state: localized support.
The Economic Development Administration (EDA) will receive a share of the Green Bond capital and redistribute that capital in the form of grants and loans through its regional offices according to the amount of money generated by the sale of Green Bonds in that region : regionalized support.

If I got a Green Bonds loan, to whom will I make my loan payments?

Your loan payments will go to your local Community Foundation or a local Low-Profit Limited Liability Corporation (L3C) which in turn will pass along Green Bond revenue to the U.S. Treasury to pay off the matured Green Bonds.

What makes the Green Bonds model sustainable after the selling phase?

Green Bonds loans will be repaid and shares of new products and processes will return capital to the Green Bonds capital pool.  Manufacturers in the US will pay a minimal fee for producing consumer goods and packaging that do not use post consumer materials and that money will go into the Green Bonds capital pool.  Manufacturers will have an incentive to purchase reclaimed post consumer materials and will create their own processes and systems for reclaiming materials.  New revenue streams and jobs will be created that support reclamation because a stable market will be available for post consumer materials.  Consumer goods imported from other countries that do not use post consumer materials will also pay a fee.