Vice President Kamala Harris and EPA Administrator Michael Regan recently announced $20 billion in grant awards from the Greenhouse Gas Reduction Fund to provide financing for clean-energy projects in low-income communities. The funding, part of the Biden-Harris Administration’s Justice40 Initiative, aims to support projects that reduce emissions, create jobs, and attract private investment. The recipients, selected under the National Clean Investment Fund and Clean Communities Investment Accelerator, will work on projects such as clean power generation, home retrofitting, and community development.
Underserved communities are disproportionately affected by climate change impacts such as heat waves, poor air quality, and flooding, making it crucial to provide them with resources to address these issues. The funding will be distributed through Community Development Financial Institutions (CDFIs) led by minority communities, ensuring that historically overlooked communities receive the support they need. The Alliance, a coalition of Black-led CDFIs, will distribute funds to help bridge the gap in green investments for Black communities and ensure equitable implementation of the GHGRF.
The selected applicants have committed to reducing or avoiding up to 40 million metric tons of carbon pollution annually over the next seven years, while also generating $7 of private capital for every $1 of federal funds. Organizations like Power Forward Communities and Opportunity Finance Network have a track record of serving under-invested communities and will use the funding to decarbonize housing and provide capital to community lenders across the country. EPA Administrator Michael Regan emphasized the transformative impact these investments will have on American communities, businesses, and families, creating jobs, energy savings, and cleaner air.
In addition to the recipients of the GHGRF funding, other organizations are working to help communities and small businesses prepare for climate change and transition to cleaner energy. Mastercard Strive USA, in partnership with Community Reinvestment Fund, USA, is supporting small businesses by providing them with the resources needed to access capital, digitize, and expand their networks. These efforts are part of a larger movement to address social and economic inequities through sustainable financial solutions that build resilient communities and businesses for the future.
As the effects of climate change continue to worsen, it is essential to support underserved communities in transitioning to cleaner energy and preparing for the future. The GHGRF funding is a positive step toward strengthening Main Streets across America and helping them withstand the challenges of climate change and natural disasters. By investing in clean technology projects, creating jobs, and reducing emissions, these initiatives are paving the way for a more sustainable and equitable future for all.
