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
National Clean Investment Fund & Clean Communities Investment Accelerator
On April 4th, EPA announced the recipients of $20 billion in funding from the National Clean Investment Accelerator (NCIF) and Clean Communities Investment Accelerator (CCIA).Hover over the graphic for more information, or see the list of NCIF & CCIA coalition partners here.
Solar For All
On April 22nd, EPA announced the recipients of $7 billion in Solar for All funding to state and local governments and partner organizations to accelerate solar deployment in communities throughout the U.S. and Puerto Rico.Explore the map to learn more, or see the full list of recipients.
Ensuring equity
Consistent with President Biden's Justice40 initiative, at least 40% of the benefits from the GGRF must go to low-income and disadvantaged communities "that are marginalized by underinvestment and overburdened by pollution". Overall, 55% of the GGRF's $27 billion will be directed to these communities.
Justice40 communities
Communities designated as disadvantaged under the GGRF's Justice40 requirements make up 32% of the U.S. population, and on average, 70% of their population is identified as low income.
As a result of the GGRF's Justice40 requirements, significantly more funding will be directed toward disadvantaged communities compared to alternative scenarios in which funding were allocated based on population or by real estate values.*
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."
7x
The need for capital
Climate Policy Initiative estimates a total need for $3.76 trillion in gross investment by 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
1. Estimated that approximately 60%-80% additional funding will be directed to disadvantaged communites as a result of the fund's Justice40 requirements, compared to alternative scenarios in which funding is distributed based on population or by real estate values, respectively.