Collaborating on Greenhouse Gas Reduction Fund (GGRF) Implementation

  • Clean energy credit union

Photo courtesy of the Clean Energy Credit Union, a member of Inclusiv.

The Center for Impact Finance is supporting CDFIs, green banks, and other mission-driven lenders in financing decarbonization projects across the country. Congress approved the Greenhouse Gas Reduction Fund to support intermediaries in mobilizing capital for greenhouse gas- and pollution-reducing projects, with a portion of funds dedicated to "low-income and disadvantaged communities" (LIDACs). The GGRF offers an unprecedented opportunity to advance an equitable transition to clean energy and support small business development, quality jobs, affordable housing, sustainable food systems, resilience, and more. 

Read Enhancing the Greenhouse Reduction Fund: a brief for funders and impact investors on funding and investment opportunities for more information on how to leverage GGRF. This brief was prepared for the investor community but includes market information and investment principles relevant to all stakeholders.

Read further down this webpage for more background information and resources related to GGRF.

The Greenhouse Gas Reduction Strategy Series

From the Center for Impact Finance and the Natural Resources Defense Council

The Inflation Reduction Act (IRA) authorized the Environmental Protection Agency (EPA) to establish the Greenhouse Gas Reduction Fund (GGRF) in August 2022. In November 2022, the Center for Impact Finance teamed up with the Natural Resources Defense Council (NRDC) to develop guidance for community development lenders through a sprint strategy design process.

The Center and NRDC convened focus groups to inform a series of guides and accompanying webinars focused on key market sectors.

Our work makes the case for how GGRF can deliver greenhouse gas reduction in and for low-income and disadvantaged communities (LI/DACs), as well as "co-benefits" such as economic development, quality jobs, resilience, affordable housing, sustainable food systems, and more. Each sector-focused webinar featured a seasoned lender, a community advocate, and an industry expert. Each focus group included experienced lenders, developers, and thought leaders reflective and the project development and finance process for that market sector. Many thanks to all who participated!

Check out the sections below to download the strategy guide and view the accompanying webinar for each sector.

Our Goal:

To ensure that all communities build resilience and fully realize the benefits of the clean energy revolution, resourced by their fair share of the Greenhouse Gas Reduction Fund capital as well as equal access to other sources of responsible capital, on terms that they can afford, propelled by the opportunities of the Inflation Reduction Act generally. 

Unprecedented Opportunities

The community development finance field is uniquely positioned to deliver on the promise to the GGRF. If we coordinate, cooperate, and collaborate, each contributing our expertise, experience, trusted relationships, and other strengths and leveraging those of others, we can achieve rapid, impactful deployment of clean energy investments to low-income and disadvantaged communities. Community development lenders, their investors, and their partners are well-positioned to leverage GGRF funds into real estate development and revitalization, business expansion, community facilities, and every other community-based project that has or is seeking financing. 

Together, we can develop a new type of value engineering—one that seeks to increase the impact of every loan by identifying opportunities to reduce and avoid greenhouse gas emissions and build resilience.

Business as Usual Is No Longer Enough

Communities of color, Native communities, and those that are economically disadvantaged are disproportionately impacted by the risks and realities of climate change. Homes and farms are damaged. Workers and businesses face the impact of on-going economic shifts. Lives and livelihoods are at stake. We need to reinvigorate the community development field through a deep commitment to resilience and climate change mitigation and begin to structure investments to ensure that resilience and greenhouse gas reduction are engineered into every deal, for everyone, everywhere.

Maximize Benefits for Communities

The Center for Impact Finance (CIF) is working to maximize benefits for communities through coordination, cooperation, and collaboration across the project delivery and financing ecosystem. By activating and supporting the strong existing community development networks and helping build relations with other key market players, we hope to achieve rapid, impactful, and implementation of the Greenhouse Gas Reduction Fund and other key climate programs. Here, we describe the opportunity, the challenges we aim to address, and our plan to support interested stakeholders. We will continue to update this webpage with new information and resources as they develop.  

Background on the Guides

Starting in late 2022, in partnership with the Natural Resources Defense Council (NRDC), we developed a series to inform equitable greenhouse gas reduction through traditional lending lines of business in key market sectors. Through this sprint design process, expert teams shared knowledge and developed recommendations for community development, green banks, and other mission lenders on how to (1) integrate and normalize greenhouse gas reduction into development services, financing, and asset management and?(2) coordinate/collaborate on the most impactful ways to deploy Greenhouse Gas Reduction Fund (GGRF) dollars to scale clean energy financing in low-income and disadvantaged communities. Recommendations are grounded in deep, hands-on expertise, developed through working groups of relevant market participants and stakeholders who together will estimate the investment opportunity in each market sector, identify barriers and potential solutions to scaling the particular lending line of business, build collaborations necessary for project development, and discuss funding priorities.

We will continue to update this webpage with new information and resources as they develop—so check back regularly and follow us on LinkedIn for updates!

Our Pitch to You:

  • You are needed—every building, every business, every deal, everywhere makes a difference.
  • Your organization has unique abilities, strengths, and community relationships to bring to the table, critical to GHGR.
  • The most sustainable and impactful play requires coordination, cooperation, and collaboration with other organizations across the project delivery and financing ecosystem—don't waste time and resources on unproductive competition. 

Learn more about the Greenhouse Gas Reduction Fund, other climate programs of the Inflation Reduction Act, and why and how community development and environmental justice go hand in hand: