An Opportunity for Equitable Climate Finance

One of the law's most promising tools is tucked away in the Inflation Reduction Act's more than 650 pages of legislative text.

The $27 billion Fund establishes a ground-breaking programme at the Environmental Protection Agency (EPA) to quickly deliver low and zero-emission technology and projects to regions of our nation that have so far been ignored in the transition to clean energy.

The Fund will offer catalytic financial support to states, municipalities, and nonprofit lenders.

Tribal Governments for initiatives to prevent or minimise greenhouse gas (GHG) emissions, with the majority of funding going to underprivileged and low-income areas.

The Fund expands on the proven track record of mission-based finance organisations now in existence that combine public and private funding.

But the programme must be thoughtfully, flexibly, and fairly implemented for that potential to be realised.

EPA has a unique potential to provide areas that have historically been underserved by private markets with real, long-lasting benefits.

Lenders will be able to serve consumers with a variety of demands in a variety of locations if they are flexible and responsive to the market.