The U.S. Environmental Protection Agency is set to announce the nonprofit lenders that will distribute $20 billion for environmental projects, focusing on low-income communities.
Jean Chemnick reports for Politico.
In short:
- The funding, part of President Joe Biden's 2022 climate law, includes $14 billion for the National Clean Investment Fund and $6 billion for the Clean Communities Investment Accelerator.
- The aim is to finance green energy and efficiency projects, with significant benefits directed towards disadvantaged communities.
- Over 1,200 Community Development Financial Institutions (CDFIs) will play a crucial role in this initiative, focusing on community-driven and affordable housing projects.
Key quote:
"This program is really EPA’s attempt to inject green capital into the capillaries of our financial system in terms of all these smaller community lenders all across the country."
— Adam Kent, director of the Green Finance Program at the Natural Resources Defense Council
Why this matters:
Targeting underserved communities with green finance, this trend intends to address climate change and energy efficiency at a grassroots level, potentially transforming the landscape of community lending in the U.S. This approach indicates a shift toward community partnerships that emphasize sustainability and create opportunities for environmental change.
