Environmentally conscious financiers are increasingly pursuing green ventures, especially through green bonds and stocks, social investing, and social benefit corporations. On September 21, 2021, the Environmental Law Institute hosted a panel of experts for its Environmental Law and Finance Series that explored the regulatory process for green bonds and stocks, best practices for advising stakeholders and clients interested in green bonds, and the opportunities and challenges of leveraging green financial tools to combat climate change. This Dialogue presents a transcript of that discussion, which has been edited for style, clarity, and space considerations.

Over the last few decades, 30 states and Washington, D.C., have enacted renewable portfolio standard (RPS) programs. These programs vary substantially, with most states having a restriction or preference with respect to whether renewables are located in-state or in-region. This Article takes a cross-disciplinary approach to analyzing these programs: first, by looking at how geographic limitations may run afoul of the dormant Commerce Clause (DCC); and second, by considering empirical research on how geographic provisions affect RPS programs’ cost-effectiveness. Prohibiting or restricting out-of-state renewables from counting toward RPS requirements is likely unconstitutional, but policies applying on a regional basis or pursuing a practical aim are likely to be viewed more favorably by courts. The DCC thus plays an important role in improving uniformity among state RPS programs and promoting free trade and efficiency.