Greenhouse Gas Reduction Fund (GGRF)
The Greenhouse Gas Reduction Fund (GGRF) is a $27 billion investment to mobilize capital to address the climate crisis, especially in communities that have historically been left behind.
Authorized under the Inflation Reduction Act, the Greenhouse Gas Reduction Fund represents an unprecedented opportunity to bring environmental justice grants and climate financing products to low-income, low-wealth communities. More than 55% of the $27 billion GGRF is available for loans and grants in these communities.
More than 55% of the $27 billion Greenhouse Gas Reduction Fund is available for loans and grants in low-income, low-wealth, and disadvantaged communities.
The Greenhouse Gas Reduction Fund will be implemented across three environmental justice grant competitions: the $14 billion National Clean Investment Fund, the $6 billion Clean Communities Investment Accelerator, and the $7 billion Solar for All.
- National Clean Investment Fund: Grants to national nonprofit organizations to partner with the private sector to provide accessible, affordable financing for clean technology projects across the country.
- Clean Communities Investment Accelerator: Grants to national nonprofit “hubs” to deliver financial resources and technical assistance to build the climate lending capacity of community lenders working in low-income and disadvantaged communities.
- Solar for All: Grants to state, local, Tribal, and territory governments to expand rooftop access to affordable, resilient, and clean solar energy in low-income, low-wealth communities.
Administered by the EPA, the goals of the GGRF are to reduce greenhouse gas emissions and other sources of air pollution, lower energy costs, create clean energy jobs, mobilize additional private capital, and strengthen local economies.
Community Lenders Will Finance an Inclusive Green Economy
CDFIs and other mission-driven community lenders are perfectly positioned to finance a just clean energy transition through the Greenhouse Gas Reduction Fund. They are specialized lenders with a long track record of driving affordable climate finance to low-income, low-wealth communities and communities of color.
CDFIs understand that these underserved communities require climate financing products, including environmental justice grants, that align with broader community goals: improved health, greater wealth, sustainable quality jobs, and a better standard of living.
With deep relationships in their communities, combined with an ever-expanding portfolio of climate financing products, mission lenders will unite environmental justice, climate justice, and economic justice via the Greenhouse Gas Reduction Fund.
OFN’s Approach to Finance Climate Justice
OFN aims to transform the market for clean energy finance in low-income and disadvantaged communities to combat climate change, improve equity, and deliver community benefits.
OFN has applied as a lead applicant to the Clean Communities Investment Accelerator (Read our news release).
OFN is a partner on applications to the National Clean Investment Fund with the Justice Climate Fund and with Climate United.
What It Means for You
OFN will be a resource hub for community lenders growing their climate finance activities. With a combination of grants, technical assistance, and loans, OFN will support CDFIs and other community lenders all along the climate capacity path – from nascent to established climate lenders. This support will prepare community lenders to take on debt capital through the National Clean Investment Fund and deliver climate solutions at scale.
Support Greenhouse Gas Reduction with OFN
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Mission-driven community lenders who meet OFN’s membership criteria are welcome to apply for membership and participate in this program.
Questions? Have questions or comments about OFN and the Greenhouse Gas Reduction Fund? Our contact form is the best way to reach us so we can route your request to the right person.