In 1911 the Commonwealth Bank of Australia was formed. The first governor was Denison Miller. At first the CBA was a “regular” bank meaning it was not permitted to issue coins or notes but it was able to issue new credit – like all banks – in the name of the Commonwealth.
The CBA started with 10,000 pounds in capital. It borrowed no other money from overseas but simply created credit and matching deposits, lent it and facilitated trade. It financed the first world war with loans of 1% to the government but, as it was owned by the government, the government did not go into debt because it owned the bank.
This is a remarkable story and you can read about the banking ideas behind the CBA at http://www.hinterlandvoice.com.au/the-remarkable-model-of-the-commonwealth-bank-of-australia-by-ellen-brown
There is another model to fund the development of renewable energy that does not involve putting a price on carbon. If loans of zero or one percent are given to construct renewable energy plants then almost all renewable energy projects will be profitable.
To see some numbers visit https://cscoxk.wordpress.com/2010/08/24/a-price-on-carbon-or-interest-free-credit/
To see the a description of the way to distribute funds through a market mechanism visit https://cscoxk.wordpress.com/2010/05/27/unleashing-creative-forces-for-a-sustainable-future/
This approach can be started without any new legislation or any new rules and it could be done by the Reserve Bank issuing interest free loans – via the existing banks – that must be invested in renewable energy projects.