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BY
Jordy Leo
- April 10, 2024
The US Environmental Protection Agency (EPA) has announced USD20bn in federal grants for thousands of climate and clean energy projects across the US, with a particular focus on low-income and disadvantaged communities, as reported by Reuters on April 5. A significant portion of the funds, totaling USD14bn, will be used for establishing national clean financing institutions that provide accessible, affordable financing for clean technology projects. Additionally, USD6bn will be allocated to establish hubs that offer financial and technical support to developers working on clean energy projects in low-income and disadvantaged communities.Notably, over 70% of the new awards will be directed to these communities to ensure environmental justice. The EPA anticipates the awards to unlock a total of USD150bn investment in clean technology projects. The projects selected for the awards are expected to reduce or avoid greenhouse gas emissions by up to 40 million tons per year.
The significant USD20bn federal grants form part of the EPA’s Greenhouse Gas Reduction Fund (GGRF), a USD27bn program funded through the Inflation Reduction Act (IRA). The GGRF aims to mobilize financing and private capital to boost the deployment of emission- and air pollution-reducing projects across the US, particularly in underserved areas. Later this spring, the EPA would allocate the remaining USD7bn through the agency’s Solar for All program. The program intends to build and expand distributed solar installations in low-income and disadvantaged communities, enabling accessto affordable, resilient, and clean solar energy for millions of low-income households.
Sources:
https://www.epa.gov/greenhouse-gas-reduction-fund/about-greenhouse-gas-reduction-fund
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