Establishing a national green bank with the GHG Reduction Fund will reduce emissions, promote environmental justice
Author: Ken Berlin
Of the $27 billion in the Greenhouse Gas Reduction Fund, $20 billion will be administered by the Environmental Protection Agency to support eligible nonprofit entities’ emissions-reduction projects. The other $7 billion in the fund will be available to states, municipalities, and tribal governments to implement programs enabling low-income and disadvantaged communities to benefit from zero-emissions technology. Suppors of green banks and the legislative sponsors of the legislation have pushed for the funds to be distributed through a national green bank for many reasons. The national green bank could ramp up quickly, establish national standards for loans, develop credit enhancement programs, and provide expertise and funding to local communities, state and local green banks, and other financial institutions including community development finance institutions (CDFIs). It delivers environmental and energy justice, and helps enable an equitable transition to a clean energy economy.