ICYMI: A “GAMECHANGER” FOR CLEAN ENERGY
Inflation Reduction Act’s Green Bank Will Accelerate Clean Energy Across America
In Case You Missed It — One of the most significant provisions in the Inflation Reduction Act resides on page 667. The Greenhouse Gas Reduction Fund includes $27 billion in loan-based funding for clean energy projects and has the potential to reshape how the U.S. government funds America’s clean energy transition.
Local and state green banks have been extremely successful, with 99.62% of loans being repaid to the lender, according to the Guardian. It’s a historic program that advocates have pushed for decades.
Buried on page 667 of the Inflation Reduction Act is a climate policy that has been in the making for more than a decade.
The Greenhouse Gas Reduction Fund provides $27bn in funding for projects aimed at lowering America’s planet-heating emissions. Some of those funds, roughly $7bn, will be dedicated to clean energy deployment in low-income communities – but the vast majority of the funds will be used to create America’s first national green bank, an initiative long championed by climate activists.
“This is, I think, one of the most exciting and transformational investments and programs in this new law,” said Sam Ricketts, co-founder of the climate group Evergreen Action. “The importance of a national clean energy accelerator is that it’s a national entity, with a national mandate to finance these projects in every state.”
The existing state and local green banks in the US have shown how such loans can be a sound investment. According to the Coalition for Green Capital, 99.62% of state and local green bank loans in the US have been repaid to their lender. Those payments have made green banks self-sustaining, allowing them to invest more funds in projects aimed at reducing planet-heating emissions.
About Invest in America
Invest In America is a national rapid response operation advocating for robust public investment to rescue the economy from the COVID crisis and create prosperity for the future, and to fight back against fear-mongers who use deficit concerns as a scapegoat to starve American communities and businesses of resources.
The operation consists of two components: Invest in America, the charitable and public education arm, which is a fiscally sponsored project of Economic Security Project funded by the William and Flora Hewlett Foundation and Economic Security Project co-chair Chris Hughes; and Invest in America Action, the advocacy and social welfare arm, which is a fiscally sponsored project of Economic Security Project Action funded by Chris Hughes and the Omidyar Network.