US Providing $20 Billion in Grants to Help Cut Greenhouse Gas ... - Investopedia
US Providing $20 Billion in Grants to Help Cut Greenhouse Gas Emissions
Key Takeaways
- The White House and EPA announced competitions worth $20 billion to expand investments in new projects aimed at reducing greenhouse gas emissions.
- The Biden Administration has set goals to cut U.S. greenhouse gas emissions in half by 2030 and reach net-zero emissions by 2050.
- Those seeking the grants must apply to the EPA by October 12.
The White House and the Environmental Protection Agency (EPA) announced a pair of competitions worth $20 billion to expand investments in new projects aimed at reducing greenhouse gas emissions.
The $14 billion National Clean Investment Fund (NCIF) competition will provide grants to support two or three financing institutions that will partner with the private sector to provide “accessible, affordable financing for tens of thousands of clean technology projects.” Officials noted at least 40% of the money will go to “low-income and disadvantaged communities.”
The $6 billion Clean Communities Investment Accelerator (CCIA) will work with the NCIF to give grants to two to seven hub nonprofit organizations. Those nonprofits will fund and give technical assistance to community lenders working to finance clean energy projects, also in low-income and disadvantaged communities.
Vice President Kamala Harris, who announced the plan along with EPA Administrator Michael Regan at Coppin State University, pointed out that the Biden Administration has set goals to cut U.S. greenhouse gas emissions in half by 2030 and reach net-zero emissions by 2050. She explained that these new investments “move our nation towards achieving these goals and a cleaner, healthier future for generations to come.”
The money is part of the $27 billion Greenhouse Gas Reduction Fund that was created by last year’s Inflation Reduction Act.
Those seeking the grants must apply to the EPA by October 12.
Related Knowledge Center: Carbon capture
The federal government is investing heavily in the development of carbon capture and storage (or sequestration), which offers the enticing prospect of preventing carbon dioxide emissions produced during combustion from entering the atmosphere and contributing to climate change. But the technologies involved, while proven, remain expensive, an obstacle to widespread adoption.