The Green Side to Banking

These days, banks handle more than checking and savings accounts, and home and car loans. They're investing in forest preservation, clean water production, recycling and sustainable farming – and providing incentives for customers to go green, too.

Bank of America launched a $20 billion green-lending initiative in March to finance companies creating low-emissions technology, underwrite loans for green building projects and create a carbon-credit-trading service.

This week the state of California gave $10 million to New Resource Bank to spur lending to developers and homeowners adopting green measures.

Banks have come up with many ways to better serve customers and the environment, ranging from providing reduced interest rates for loans that meet environmental criteria, carbon offsets during the life of a loan, and loans and financing for LEED-certified buildings. Auto loans sometimes give preferential rates for hybrids or offset a car's emissions for the life of a car loan.

And green credit cards have entered the scene, donating portions of sales to environmental groups, emissions offsets and reduced interest rates for green products and services.