A consortium of seven banks have joined Bank of America’s Catalytic Finance Initiative (CFI) to invest $8 billion (£6bn) in “high-impact sustainable projects”.

Banks signed up to the CFI include Crédit Agricole, the European Investment Bank and HSBC.

Bank of America launched the initiative in 2014 with a $1bn commitment.

Projects already supported by the CFI have included: new energy efficiency financing in partnership with the New York State Green Bank totalling $800 million; arranging a $204m green project bond for wind developer Energia Eolica in Peru; and helping to structure a $100m facility with the Global Alliance for Clean Cookstoves.

‘New investment opportunities’

Purna Saggurti, Chairman of the Global Corporate and Investment Bank at Bank of America Merrill Lynch, said: “There is more work to be done, and through this joint partnership, we will continue to find ways to leverage our own capital and spur additional investment from partner institutions to help address climate change and find commercially attractive clean energy solutions for the benefit of future generations.

In a joint statement, the CFI partners added: “Financial innovation and capital play a critical role in the transition to a low-carbon economy.  Through the CFI and this joint partnership, together we can support the transition to a low-carbon economy and sustainable growth.

“By providing $8bn in commitments, we can help to advance new investment opportunities in clean energy as well as other sustainable development goals and achieve the necessary scale for a positive impact on climate change.”

> Read Bank of America's announcement