US Vice-President Kamala Harris and Environmental Protection Agency (EPA) Administrator Michael Regan announced on Thursday the eight organisations that will receive portions of a $20bn clean energy funding package.
The investment, made available through the $27bn Greenhouse Gas Reduction Fund (GGRF) created under the 2022 Inflation Reduction Act (IRA), will go towards a national financing network that will fund tens of thousands of climate and clean energy projects across the US, the Whitehouse said in a statement. Projects will be completed over the next seven years and are expected to reduce or avoid up to 40 million tonnes of pollution annually.
Eight organisations were selected to oversee spending of the $20bn package. Those selected are operated under two separate programmes: the $14bn National Clean Investment Fund (NCIF) and the $6bn Clean Communities Investment Accelerator (CCIA).
The selectees for the NCIF are three non-profit groups that focus on low-income and disadvantaged community development, establishment of green banks and community investment in decarbonising housing. The CCIA funding will be allocated to another five non-profit groups that provide capital and capacity building for community development and clean energy.
Selected organisations have also committed to mobilising almost $7 of private capital for every $1 of public funding, which will equal approximately $150bn in total financing.
Support for projects in low-income and disadvantaged communities that are “marginalised by underinvestment and overburdened by pollution” will be prioritised. These will include clean power generation and storage, net-zero retrofits of homes and small businesses, and zero-emission transportation networks. The government hopes that domestically produced clean power will lower energy costs for families and improve housing affordability while also tackling the climate crisis.
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By GlobalData“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 neighbourhoods,” Harris said in a statement.
The EPA hopes to move the funds to the relevant organisations by September this year. The GGRF has been a target of congressional Republicans, who passed a resolution this year attempting to repeal climate financing.
Last month, the US Department of Energy announced a separate $6bn funding package for the decarbonisation of 33 industrial projects across 20 states. Most of the investment is also being mobilised through the IRA as the government ramps up efforts to meet net-zero targets.
