On IRA’s 1-Year Anniversary, Toasting A Game-Changing Finance Program
As we celebrate the 1-year anniversary of the Inflation Reduction Act (IRA) and its unprecedented and game-changing advances, it’s important to highlight how one finance program created by the IRA stands to deliver benefits in communities across the country for years to come. One of the most promising tools for scaling equitable climate action created under the IRA is called the Greenhouse Gas Reduction Fund (GGRF).
This $27 billion fund is a first-of-its-kind program at the Environmental Protection Agency (EPA) focused on rapidly deploying clean energy projects to areas of our country that have thus far been overlooked in the clean energy transition.
It will provide catalytic financial support to nonprofit lenders, states, municipalities, and Tribal Governments for projects that reduce or avoid greenhouse gas emissions and other air pollution. And it will deliver benefits like energy savings, job and business growth, and health improvements. Almost 70% of funds will flow to low-income and disadvantaged communities, and the $27 billion is estimated to mobilize hundreds of billions of additional capital—both critical components in meeting our country’s 2050 net zero target more equitably.
About the Greenhouse Gas Reduction Fund
The Inflation Reduction Act authorized EPA to implement the Greenhouse Gas Reduction Fund, a historic $27 billion investment to mobilize financing and private capital to combat the climate crisis and ensure American economic competitiveness. The Greenhouse Gas Reduction Fund will deliver lower energy costs and economic revitalization to communities, particularly those that have historically been left behind.
The Greenhouse Gas Reduction Fund will be implemented via three grant competitions, as described below. EPA recently released the Notices of Funding Opportunity for these competitions: the $14 billion National Clean Investment Fund, the $6 billion Clean Communities Investment Accelerator, and the $7 billion Solar for All competition.
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- ^ Greenhouse Gas Reduction Fund (GGRF) (www.epa.gov)
- ^ @POTUS (twitter.com)
- ^ pic.twitter.com/OUMXFY8Bjy (t.co)
- ^ August 16, 2023 (twitter.com)
- ^ estimated to mobilize hundreds of billions (www.mckinsey.com)
- ^ here (www.epa.gov)
- ^ The Benefits and Examples of the Greenhouse Gas Reduction Fund, GGRF — Infographic (PDF) (www.nrdc.org)
- ^ NRDC Expert Blog (www.nrdc.org)
- ^ Adam Kent, (www.nrdc.org)
- ^ U.S. EPA (www.epa.gov)