What is the Greenhouse Gas Reduction Fund?
The Greenhouse Gas Reduction Fund (GGRF) is a $27 billion investment by the U.S. government to combat climate change. Established as part of the Inflation Reduction Act and building on the success of green bank financing initiatives, the GGRF represents a generational opportunity to catalyze private investment in climate solutions while addressing economic injustices exacerbated by climate change.
GGRF competitions
In June of 2023, The U.S. Environmental Protection Agency launched three grant competitions to solicit proposals for potential uses of the GGRF funds. Click the boxes below to learn more.
Fund recipients
In April of this year, EPA announced the recipients of $20 billion in funding from the National Clean Investment Accelerator (NCIF) and Clean Communities Investment Accelerator (CCIA).
How will the funds be used?
Of the $20 billion in competitive funds through NCIF and CCIA, two major strategies emerged in line with the purposes outlined in the Inflation Reduction Act.
National Green Bank
In April of this year, EPA announced the recipients of $20 billion in funding from the National Clean Investment Accelerator (NCIF) and Clean Communities Investment Accelerator (CCIA).
Community funds
In April of this year, EPA announced the recipients of $20 billion in funding from the National Clean Investment Accelerator (NCIF) and Clean Communities Investment Accelerator (CCIA).
Ensuring equity
Nisi massa enim cras tempus col sodales cep nascetur felis. Luctus porttitor eget elementum quis cubilia col quis. Arcu cep mus nascetur lacus. Overall, 55% of the GGRF's $27 billion will be directed to disadvantaged communities.
Justice40 communities
Communities designated as disadvantaged under the GGRF's Justice40 requirements make up 32% of the U.S. population, XXX, and have median incomes of XXX — X% lower than the U.S. average.
As a result of the GGRF's Justice40 requirements, we estimate that X%-X% more funding will go toward disadvantaged communities compared to alternative scenarios in which funding is allocated by population or by real estate values, respectively.
Catalyzing private investment
By derisking private investment in decarbonization projects, GGRF grants will act as a capital multiplier. According to EPA, every dollar in grant funds will be "leveraged for almost seven dollars in private funds over the next seven years."
The need for capital
Climate Policy Initiative estimates a total need for $3.76 trillion in gross investment to 2030, and $9 trillion by 2035, for the U.S. to reach net zero GHG emissions by 2050.
Resources
Use the database below to explore more information on GGRF recipients and informational resources about the GGRF.
Contact
Mike Centore