The Biden administration has announced a USD2bn funding package to help clean up pollution and deploy clean energy in disadvantaged communities, as reported by Reuters on November 22. The package, named Community Change Grants, marks the single largest investment in environmental justice going directly to communities to date. It aims to address environmental injustices and disparities by empowering communities overburdened by pollution and lacking adequate investments. The US Environmental Protection Agency (EPA) will utilize the fund to provide USD1.96bn to 150 community-driven investment projects, and another USD40m to 20 projects that promote engagement for equitable governance.

The funding package is a crucial part of the Biden administration’s Justice40 Initiative. Justice40 aims to ensure that at least 40% of the overall benefits from federal clean energy investments flow to disadvantaged communities that are marginalized, underserved, and overburdened by pollution. The USD2bn funding is made possible through the Inflation Reduction Act (IRA), which committed USD369bn in incentives for energy and climate-related programs. In July, the EPA also announced a USD6bn clean energy federal grant under the IRA to support seven non-profit organizations. These groups will provide funding and technical assistance to lower-income and disadvantaged communities, fostering the clean financing capabilities of local lenders.

S****ources:

https://www.reuters.com/world/us/us-epa-opens-2-bln-grants-environmental-justice-communities-2023-11-21/

https://www.epa.gov/newsreleases/biden-harris-administration-announces-2-billion-fund-environmental-and-climate-justice

https://news.bloomberglaw.com/us-law-week/epa-rolls-out-2-billion-package-for-environmental-justice

https://www.reuters.com/sustainability/us-launches-20-bln-green-bank-programs-curb-climate-change-2023-07-14/