Vice President Kamala Harris and EPA Administrator Michael Regan announced the recipients of $20 billion in grant awards from the Greenhouse Gas Reduction Fund to fund clean-energy and climate-related projects in underinvested communities. This initiative aims to support projects that cut emissions, create jobs, and attract additional private investment to Main Streets across America. The most severe impacts of climate change disproportionately affect underserved communities, making it crucial to provide access to financing for clean energy solutions that can help these communities prepare for and rebuild from climate-related harms such as heat waves and poor air quality.
The Greenhouse Gas Reduction Fund will distribute funds for projects such as clean power generation, energy storage, and retrofitting homes and small businesses, with a focus on equity and reaching historically overlooked communities. Minority-led Community Development Financial Institutions (CDFIs) play a key role in distributing these funds to disadvantaged communities, ensuring that they are implemented equitably. The African American Alliance of CDFI CEOs leads the Community Builders of Color Coalition, which founded the Justice Climate Fund, one of the selected applicants. These initiatives aim to reduce carbon pollution and create opportunities for private capital investment to benefit disadvantaged communities overburdened by pollution.
The selected applicants are committed to reducing or avoiding up to 40 million metric tons of carbon pollution annually over the next seven years and leveraging private capital to maximize the impact of federal funds. This effort aligns with the Biden-Harris Administration’s Justice40 Initiative, which aims to allocate 40% of the benefits from federal climate and clean energy investments to disadvantaged communities. Organizations like Power Forward Communities and the Opportunity Finance Network have a track record of serving underinvested communities and are dedicated to transforming American housing, providing capital for community lenders, and supporting clean technology projects to create jobs, save energy costs, and improve air quality.
EPA Administrator Michael Regan emphasized the transformative impact of the selected projects on American communities, businesses, and families, as they will lead to the implementation of clean technology projects such as solar installations, electrification of affordable housing, and electric vehicle loans. Additionally, organizations like Mastercard Strive USA and Community Reinvestment Fund, USA are helping small businesses access the support they need to grow and address social and economic inequities through financial solutions. By supporting communities and small businesses in preparing for climate change and transitioning to cleaner energy, these initiatives aim to strengthen Main Streets for the future and mitigate the impacts of natural disasters.
Overall, the efforts to combat climate change and support underserved communities through clean energy projects require ongoing and purposeful commitment. The Greenhouse Gas Reduction Fund and collaborations with organizations dedicated to promoting equity and sustainability are important steps towards building resilient communities and ensuring a sustainable future for all Americans. By investing in clean energy solutions, creating jobs, and promoting equity, these initiatives are essential in addressing the impacts of climate change and advancing environmental justice in underinvested communities.
