NEW YORK–Inclusiv, which represents more than 450 community development credit unions (CDCUs), is praising the Environmental Protection Agency (EPA) for what it is calling “heroic efforts” in advancing the implementation of the $27 billion Greenhouse Gas Reduction Fund.
As CUToday.info previously reported, the Fund was enacted as part of the Inflation Reduction Act, with the EPA as the administrator. The Fund is designed to “mobilize capital to reduce emissions and drive benefits to communities most negatively impacted by pollution,” Inclusiv stated.
Both CUNA and NAFCU have also expressed support for opportunities the new funding presents.
Earlier this week the EPA announced a framework for the fund that Inclusiv called a “strong and effective blueprint” for equitable climate finance that will “serve as a catalyst” for minority depository institutions (MDIs) and CDCUs to expand their green lending and ensure the benefits of a greening economy are felt by all.
‘Historic Opportunity’
“This is an historic opportunity for Community Development Credit Unions to access flexible capital to support households in reducing energy cost burdens and preparing for climate events,” said Cathie Mahon, president/CEO of Inclusiv. “The Greenhouse Gas Reduction Fund will enable community lenders to create and scale programs to help their members to upgrade to energy efficient appliances, purchase electric vehicles, invest in heating/cooling systems, and access solar either directly on their homes or through community solar projects. It also provides opportunities to invest in and support green businesses in low- and moderate-income communities and communities of color, creating jobs and opportunity in the greening economy.”
As CUToday.info also reported earlier, Inclusiv has descripted the $430-billion Inflation Reduction Act as an opportunity for CDFIs and MDIs to “expand their green lending and ensure the benefits of a greening economy are felt by all.”
Helping ‘Shut Out’ Communities
Inclusiv said it will continue to work with the many organizations and allies with the “experience and expertise” to implement this Fund to ensure that capital will be channeled to organizations on the ground that are best positioned to meet local needs.
“…It is critical that these investments not only reach, but prioritize people and communities most affected by the climate crisis, which are often the same people and communities who have been shut out of the mainstream financial system by redlining and other discriminatory practices,” Inclusiv said. “CDCUs, MDIs and CDFIs, which specialize in serving the people and communities mainstream financial institutions fail to serve, must play a leading role in ensuring this historic investment in climate finance is deployed successfully.”
170 FIs Get Training
In the last two years Inclusiv noted that its Center for Resiliency and Clean Energy in partnership with the Carsey School of Public Policy’s Center for Impact Finance at the University of New Hampshire has trained 170 community-based financial institutions across the country in green lending, building capacity and infrastructure to meet the renewable energy, energy efficiency, resiliency and other climate finance needs of communities hardest hit by climate change.
What the Research Shows
Inclusiv reported that its research shows more than 439 community-based lenders already offer or are actively developing green lending products and serve all 50 states, Washington, D.C., and Puerto Rico.
“These lenders collectively manage over $461 billion in community-owned assets and a sample of just 56 of these lenders reported investing a cumulative $2.7 billion in green projects over the last five years. Many of the lenders in this group offer dedicated green loan products for low- and moderate-income communities and communities of color,” Inclusiv said. “In addition to their deep impact, these community-based lenders are typically able to leverage public investment more than tenfold, putting the potential scale of financing for clean energy and climate resiliency from the Greenhouse Gas Reduction Fund at more than $200 billion.”
Greener by the Dozen
In addition, Inclusiv said that “dozens” of its members are already successful green lenders that serve the most climate vulnerable communities, and are ready to deploy these critically-needed funds in their communities.
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