Last week, the U.S. Environmental Protection Agency announced $20 billion in grant funds to go towards American clean energy and climate solution projects across communities. These funds were sourced from the Greenhouse Gas Reduction Fund’s National Clean Investment Fund and the Clean Communities Investment Accelerator.

The EPA selected eight recipients for funds: three under the National Clean Investment Fund and five under the Clean Communities Investment Accelerator. This will allow for the creation of a clean financing network for clean energy and climate solutions across sectors. With a focus on community, the Biden Administration is hoping to ensure that communities can access necessary capital to not only participate in but benefit from a cleaner, more sustainable economy.

With 70% of the eight selections for awards going towards low-income and disadvantaged communities, the Greenhouse Gas Reduction Fund is now the largest non-tax investment within the Inflation Reduction Act, one of historic significance. 

Collectively, each of the applicants have committed to reducing climate and air pollution, delivering benefits to communities, particularly low-income and disadvantaged communities, and mobilizing financing and private capital. They will also fund projects that will avoid greenhouse gas emissions by up to 40 million metric tons of CO2 equivalent per year; dedicate over $14 billion toward low-income and disadvantaged communities ($4 billion + for rural communities and $1.5 billion for Tribal communities); achieve private capital mobilization ration of 7 times per dollar in grant funds, totaling $150 billion of public and private investment.

National Clean Investment Fund Awardees

• Climate United Fund ($6.9 billion)
• Coalition for Green Capital ($5 billion)
• Power Forward Communities ($2 billion)

Clean Communities Investment Accelerator Awardees

• Opportunity Finance Network ($2.29 billion)
• Inclusiv ($1.87 billion)
• Justice Climate Fund ($940 million)
• Appalachian Community Capital ($500 million)
• Native CDFI Network ($400 million)

Vice President Kamala Harris said, “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.”

It seems that with the focus of these investments being on uplifting disadvantage communities to ensure they don’t get left behind during the Energy Transition into a clean energy economy, the Biden Administration is on its way to achieving those goals.