70% go toward low-income and disadvantaged communities
The Environmental Protection Agency announced its selections for $20 billion in grant awards for the National Clean Investment Fund (NCIF) and Clean Communities Investment Accelerator (CCIA), part of the historic $27 billion Greenhouse Gas Reduction Fund (GGRF).
The selected organizations include nonprofit coalitions, Community Development Financial Institution (CDFI) intermediaries and CDFIs: Climate United Fund, Coalition for Green Capital, Power Forward Communities, Opportunity Finance Network, Inclusiv, Native CDFI Network, Justice Climate Fund and Appalachian Community Capital. Collectively, the selected organizations have committed to driving significant impact. They will:
Reduce or avoid up to 40 million metric tons of climate pollution per year
Mobilize almost $7 of private capital for every $1 of federal funds
Dedicate more than $14 billion of capital—over 70% of the selections for awards announced today—toward low-income and disadvantaged communities
The Greenhouse Gas Reduction Fund is the most significant non-tax investment from the Inflation Reduction Act aimed at building a clean energy economy while benefiting historically disadvantaged communities.
“We look forward to assisting our CDFI credit unions work with the selected organizations to deploy capital in much-needed areas," CU Strategic Planning CEO Stacy Augustine said. These grants will go a long way toward lifting up forgotten communities that our credit unions want to serve.”
Great Work Already Being Done
According to the Biden Administration, the eight selected applicants have supported thousands of individuals, businesses, and community organizations to access capital for climate and clean energy projects. Now, they can unleash tens of thousands more, like Opportunity Finance Network member Solar and Energy Loan Fund. SELF, a U.S.-Treasury certified CDFI in Florida, recently partnered with Miami-Dade County’s Office of Resilience to invest in solar power, window and roof upgrades, and aging-in-place upgrades—including the installation of solar panels and battery backup systems for Gibson Plaza, a 65-unit affordable senior housing project. These investments have helped the community reduce energy costs while building resiliency, ensuring residents can stay in their homes and remain protected against future climate impacts.
“OFN is thrilled to partner with the EPA to finance the clean energy transition and drive opportunity in communities across the country by supporting mission-driven community lenders through the GGRF,” said Opportunity Finance Network President and CEO Harold Pettigrew. “As the nation’s leading investment intermediary and network of community lenders serving rural, urban, and Native low-income and disadvantaged communities, we are clear that now is the time to act on climate change and community development finance is an integral part of the solution. OFN, our network, and the CDFI industry are made for this moment, and we look forward to working with partners to deliver impact.”
GGRF Background
Vice President Kamala Harris and EPA Administrator Michael S. Regan met with a homeowner in a historically Black community, where a local nonprofit, Self-Help, worked with community partners to finance, renovate, and construct energy-efficient, affordable homes for low- and moderate-income families. Thanks to that partnership, this first-time homeowner pays significantly lower energy bills and has a healthy and comfortable place to raise his family.
“When President Biden and I made the largest investment in our nation's history to address the climate crisis and to build a clean energy economy, we made sure that every community would be able to participate and benefit,” Vice President Harris said. “The grantees announced today will help ensure that families, small businesses, and community leaders have access to the capital they need to make climate and clean energy projects a reality in their neighborhoods.”
If you’d like to learn more about CDFIs, the Greenhouse Gas Reduction Fund Grants and more, please connect with us today.