The Greenhouse Gas Reduction Fund, the national green bank program created by the Inflation Reduction Act, has gotten off to a slow start — but the money has started to flow.

In April, a handful of nonprofit consortiums were selected to administer the $20 billion program. These groups face a hefty mandate: to use that federal funding to spur $150 billion or more of private-sector investment in climate and clean-energy projects, mostly for underserved communities.

But it isn’t simple to put that money to work. The projects they back must comply with the Biden administration’s Justice40 Initiative mandates, meet federal domestic-content and buy-American provisions, and follow complicated data-reporting requirements. Their loans and investments must also simultaneously reach hard-to-serve markets and earn returns that can be reinvested into future projects — while tempting private-sector investors to join in.

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Source: Canary Media

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