MA S786

Establishes the Massachusetts Climate Bank as an independent public authority to finance climate and clean energy projects, including loans, loan guarantees, credit enhancements, grants, and equity investments

Governed by an 11-member board including the Commissioner of Banks, Secretary of Administration and Finance, State Treasurer, Climate Chief, and 7 gubernatorial appointees with expertise in ESG finance, banking, climate impact, and ecosystem services

Requires minimum funding of $100,000,000 over five years from cap-and-trade programs, climate compliance fees, and private donations; authorizes the State Treasurer to issue up to $750,000,000 in bonds annually to capitalize the bank

Mandates at least 20% of funds be designated for rural communities (under 500 persons per square mile or under 7,000 population) and coastal communities

Prohibits equity investments in natural gas and utility-scale biomass projects; requires annual reporting on financial performance and public sustainability benefits aligned with UN Sustainable Development Goals and SASB standards