U.S. EPA Announces $20 Billion in Grants to Advance Clean Energy and Climate Solutions

The U.S. Environmental Protection Agency on April 4 announced the recipients of $20 billion in grant awards under two programs within the $27 billion Greenhouse Gas Reduction Fund, or GGRF, established by the 2022 Inflation Reduction Act. These grants will facilitate the establishment of a national financing network for clean energy and climate solutions across various sectors, ensuring that communities have access to the necessary capital to participate in and benefit from a cleaner, more sustainable economy. This national network will leverage private capital to reduce climate and air pollution, lower energy costs, improve public health, and stimulate job creation across the country, particularly in low-income and disadvantaged communities.

Under the $14 billion National Clean Investment Fund, three organizations will establish national clean financing institutions to partner with the private sector and provide accessible, affordable financing for clean technology projects nationwide. The five selections under the $6 billion Clean Communities Investment Accelerator will facilitate the establishment of hubs to provide funding and technical assistance to community lenders operating in low-income and disadvantaged communities.

The selected applicants have committed to advancing the program’s objectives, aiming to reduce or avoid up to 40 million metric tons of emissions annually. They are expected to mobilize nearly $7 of private capital for every $1 of federal funds, ensuring that each public dollar is maximized for significant private-sector investment. More than $14 billion of the awarded capital, representing over 70 percent of the selections, will be directed toward low-income and disadvantaged communities, making the GGRF the largest non-tax investment within the Inflation Reduction Act dedicated to building a clean energy economy while benefiting historically marginalized populations.

These selectees have pledged to deliver on the primary objectives of the GGRF initiative, focusing on reducing climate and air pollution, providing benefits to communities, especially those that are low-income and disadvantaged, and mobilizing financing and private capital.

With a total investment of $27 billion, this initiative aims to address the climate crisis by mobilizing financing and private capital for projects aimed at reducing greenhouse gas emissions and air pollution nationwide. The GGRF’s programs, including the National Clean Investment Fund, Clean Communities Investment Accelerator, and Solar for All, will finance the deployment of clean technology on a national scale, particularly in low-income and disadvantaged communities, while also building the capacity of community lenders serving those areas. Additionally, the initiative will promote the adoption of clean distributed solar energy to lower energy bills for low-income and disadvantaged communities. EPA plans to provide further details on the $7 billion Solar for All competition later this spring.

EPA will be hosting informational webinars on the National Clean Investment Fund and Clean Communities Investment Accelerator on April 10 and 11.