US unveils USD 20bn of awards under Greenhouse Gas Reduction Fund

The US Environmental Protection Agency has announced USD 20 billion (EUR 18.5bn) in grant awards to eight selected applicants under the USD-27-billion Greenhouse Gas Reduction Fund (GGRF), set up under the Inflation Reduction Act.

As announced last Thursday, the funds are being disbursed under two competitions within the GGRF -- three recipients have been selected under the USD-14-billion National Clean Investment Fund (NCIF) and five under the USD-6-billion Clean Communities Investment Accelerator (CCIA).

The selections are expected to create a national clean financing network for clean energy and climate solutions across sectors, with over USD 14 billion of capital to be dedicated toward low-income and disadvantaged communities. The applications support GGRF's three objectives, namely reducing climate and air pollution, benefiting communities, and mobilising financing and private capital.

“The grantees announced today [April 4] 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,” said US Vice President Kamala Harris.

“Today, we’re putting an unprecedented USD 20 billion to work in communities that for too long have been shut out of resources to lower costs and benefit from clean technology solutions,” added EPA Administrator Michael S. Regan.

The NCIF selectees, for instance, include Coalition for Green Capital, a nonprofit, which has been awarded USD 5 billion. Its chief executive Reed Hundt said the USD 20 billion of awards jumpstart the next step in American green banking.

“Investing in projects from our USD 30 billion pipeline and working with all community lenders, we and other award winners will prove that public-private investment delivers cheap, clean power fast to low-income and disadvantaged communities, and indeed everywhere in our great country,” Hundt added.

The NCIF selections further included Climate United Fund, a nonprofit created by Calvert Impact to partner with two US Treasury-certified Community Development Financial Institutions (CDFIs), Self-Help Ventures Fund and Community Preservation Corporation. It will get USD 6.97 billion. Power Forward Communities, a nonprofit coalition formed by five housing, climate, and community investment groups, has been awarded USD 2 billion.

CCIA funds have been awarded to Opportunity Finance Network, Inclusiv, Justice Climate Fund, Appalachian Community Capital and Native CDFI Network.

According to the announcement, the projects will mobilise almost USD 7 of private capital for every USD 1 of federal funds, so they are expected to lead to USD 150 billion of public and private investment over the next seven years.

(USD 1 = EUR 0.924)

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