Exploring Public Banks and Alternative Financing
Dr. Thomas Marois
Reader in Development Studies
SOAS University of London
@Thomas_Marois (Twitter)
TUED South - Regional Policy Meeting
A Public Pathway for sub-Saharan Africa:
Meeting the Challenges of Energy Transition
16 – 18 May 2023
Public Banks for Just Energy Transitions?
There is no pathway to financing energy transitions that will not go through public banks.
But will this pathway be just? This is the struggle.
A world of public banks
Over $49 trillion in assets
Over 900 worldwide
What is a
‘public bank’?
What is �‘public purpose’�public banking?
‘We are a bank of and for the public sector, which is why we enjoy good relationships with local authorities and the central government.’
NWB (Dutch Water Bank) Annual Report 2020
‘The purpose of the Bank is to invest and seek to attract investment from private sector investors and institutional investors in infrastructure projects … that will generate revenue.’
Canada Infrastructure Bank Act (2017)
What alternatives do public banks potentially offer?
Set 'green' floors
Nordic Investment Bank (NIB)
Head of Sustainability and Mandate, Luca De Lorenzo
NIB’s updated Sustainability Policy reflects that we are running out of time, and that we really need to step up efforts to decarbonise the energy sector. So, we are taking a very clear stance, we will not finance any fossil fuel-based energy generation.
NIB https://www.nib.int/who-we-are/our-impact/disclosure/public-consultation-sustainability-policy.
Environment & sustainability prior to productivity gains
‘’No one can compete�since no one dares to lend more�cheaply!’��(Güngen 2022, 774)
Catalysts for Municipal Transformation
Catalysts for Stable Transformation
Mandate-based institutions:
We are the strategic partner of the National Government and territorial entities for the planning, structuring, financing and execution of sustainable projects that transform territories.
Financing for municipalities and local authorities is offered at cheaper than market rates.
Cooperative-Public-Public Partnerships
A policy-, not profit-, maximizing entity
�The contested functions of public banks�shape evolving �meaning of �public ownership
Social Forces
Institutional Functions
Public Banks
Not essentially good or bad
Only ever as good as we make them
Tasks for Trade Unions
Identify public banks in your region that are funding energy infrastructure.
Identify
Meet with the public bank to discuss shared and differing priorities for funding just energy transitions.
Meet
Report back to TUED South on what ‘works best’ and what ‘works worst’ for public banks and energy transitions.
Report back
THANK YOU!
Thomas Marois
SOAS University of London
(incoming) Professor of Political Science, McMaster University, Canada
@Thomas_Marois (Twitter)