EPA Awarded $20B In Green Bank Grants For Climate Change Mitigation

EPA Awarded $20B In Green Bank Grants For Climate Change Mitigation - Carbon Herald

As part of a push to supercharge disadvantaged communities and the green transition, the Environmental Protection Agency announced a major grants investment that aim to unlock development for a variety of low carbon projects. EPA announced on April 4th it awarded $20 billion in federal “green bank” grants to eight community development banks and nonprofit organizations to use on projects combating climate change in disadvantaged communities, helping to reduce emissions and bring the country closer to equality. 

The projects vary from residential heat pumps and other energy-efficient home improvements to electric vehicle charging stations and community cooling centers, according to the announcement. 

Among the eight recipients of the grants are:

  • The Coalition for Green Capital – a nonprofit working with a nationwide network of state, local, and nonprofit green banks that received $5 billion.
  • The Power Forward Communities – a nonprofit coalition formed by five housing, climate, and community investment groups that received $2 billion.
  • Appalachian Community Capital, a nonprofit community development financial institution working with lenders in Appalachia that received $500 million.
  • The Greenhouse Gas Reduction Fund – a $27 billion bank, one of many federal efforts to invest in solutions that cut planet-warming greenhouse gas emissions and address human-caused climate change.
  • The $14 billion National Clean Investment Fund – the program granted money to three nonprofits that will partner with states and the private sector to provide affordable financing for projects across the country.
  • The $6 billion Clean Communities Investment Accelerator – it granted money to five institutions that will work with other groups to establish hubs that make funding and technical assistance accessible to community lenders.

Relevant: “Number One Priority Is How To Raise Capital For The Green Transition,” Fredrik Ekström, President Nasdaq Stockholm

For each $1 of federal investment, the recipients committed to spending $7 in private sector funding to “reduce or avoid” 40 million metric tons of CO2 each year. 70% of the investment will also go for disadvantaged and low-income communities – those often passed over by commercial banks and investors and who are still disproportionately affected by climate change.

“I do think this is a really important part of our national strategy to reduce greenhouse gas emissions and engage every community in the clean energy revolution… Now we just need to work very hard on implementation,” commented Maryland Sen. Chris Van Hollen for The Associated Press in an interview

Relevant: EPA Excludes Existing Natural Gas Plants From Draft Carbon Capture Rules

Some Republicans in Congress were reported to oppose the green banks initiative calling it a “slush fund” and voicing concern over accountability and transparency. House Republicans passed a bill last month to repeal the bank and other parts of the president’s climate agenda. However, Connecticut’s Green Bank and others have been successful in tracking the impact of their programs and were deemed to be boosting communities that they served.

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