Green banks launch coalition to coordinate IRA funding

E&E News by POLITICO

By Jean Chemnick

September 23, 2024

The new group comes as the federal government pours billions of dollars into climate programs for low-income communities.

Green banks across the country launched a new partnership Monday to help develop community lending for low-carbon projects and to access federal resources.

The group, called U.S. Green Bank 50, will focus on state, local and regional green banking — a class of nonprofit lender that has grown exponentially in recent years to support the low carbon transition. These specialized banks stand to play a role in implementing several federal climate programs, such as the $27 billion Greenhouse Gas Reduction Fund created by the Inflation Reduction Act.

“We’ve really seen the number of green banks explode over the past couple of years to help meet this moment of unprecedented investment into solutions for our climate and our communities,” said Kirsten Stasio, CEO of the Nevada Clean Energy Fund and a founding member of the new coalition. “So, the GB 50 was created to support the efforts of these community-focused green banks and empower them with the resources they need to be successful.”

Green banks are being counted on to help facilitate several programs under the IRA, the landmark climate bill signed by President Joe Biden in 2022.

The Coalition for Green Capital, another green banking membership organization, was one of three nonprofits EPA tapped to run its $14 billion green bank program under the 2022 climate spending law. Green banks will also help deploy capital under another EPA IRA grant program focused on seeding green nonprofit lending in low-income communities. And they will help consumers and businesses access clean energy tax credits and Energy Department resources.

Stasio told POLITICO's E&E News that the new group — which draws its members from most states, the District of Columbia and Puerto Rico — will give green banks a unified voice in working with EPA’s primary grantees as they design their programs.

“That’s kind of the idea of the GB 50 — to be that coordinated voice to and coordinated partner,” Stasio said.

EPA has formally obligated most of its flagship IRA grant program — the Greenhouse Gas Reduction Fund, which includes the $14 billion green bank program. The nonprofit awardees who received the bulk of the funds are still designing their programs, and Stasio said she expected the funds to start flowing next year.

(https://www.eenews.net/articles/green-banks-launch-coalition-to-coordinate-ira-funding/)