The US Allocates $20 Billion for Clean Energy Initiatives in Low-Income Communities

– Kamala Harris and Michael Regan announced $20bn clean energy funding package
– Money from Greenhouse Gas Reduction Fund will go towards national financing network
– Eight organisations selected to oversee spending of the $20bn package, prioritizing projects in low-income communities

US Vice President Kamala Harris and EPA Administrator Michael Regan announced a $20 billion clean energy funding package, part of the $27 billion Greenhouse Gas Reduction Fund created under the 2022 Inflation Reduction Act. The funding will support a national network financing tens of thousands of climate and clean energy projects over seven years, aiming to reduce up to 40 million tons of pollution annually. Eight organizations were selected to oversee the $20 billion package, focusing on clean investment and community development in low-income and disadvantaged areas.

The selected organizations operate under two programs: the $14 billion National Clean Investment Fund and the $6 billion Clean Communities Investment Accelerator. They are expected to leverage nearly $150 billion in total financing, mobilizing almost $7 of private capital for every $1 of public funding. The projects will prioritize low-income and marginalized communities, focusing on clean power generation, housing retrofits, and zero-emission transportation networks. The goal is to lower energy costs for families, improve housing affordability, and address the climate crisis.

Vice President Harris emphasized the importance of providing capital for climate and clean energy projects to communities, businesses, and leaders to drive real change. The EPA aims to distribute the funds by September, despite opposition from congressional Republicans. This funding complements a separate $6 billion package from the Department of Energy for the decarbonization of industrial projects nationwide, signaling a concerted effort to achieve net-zero targets.

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