Insight into the Greenhouse Gas Reduction Fund

May 6, 2024 | Awa Darboe

Join the CEBN for a webinar May 16 from 1-2 pm ET to learn more about the GGRF and other federal climate investments! 

The Greenhouse Gas Reduction Fund (GGRF) was established under Section 134 of the Inflation Reduction Act (IRA) in 2022, allocating a total of $27 billion in funding towards the fight against climate change. The IRA authorized the Environmental Protection Agency (EPA) to create and implement the GGRF to mobilize financing and private capital for projects that reduce greenhouse gas emissions and air pollution in communities nationwide.

What is the Greenhouse Gas Reduction Fund?

The GGRF comprises three key programs: the National Clean Investment Fund, the Clean Communities Investment Accelerator, and the Solar for All initiative. These programs aim to finance the deployment of clean technology on a national scale, especially in low-income and disadvantaged communities. They also seek to build the capacity of community lenders serving these communities and promote the adoption of clean distributed solar energy, which can reduce energy bills for millions of Americans. Additionally, these programs support the Justice40 Initiative and create new job opportunities in domestic industries with competitive wages.

Program Objectives

The GGRF aims to achieve the following objectives:

  • Reduce greenhouse gas emissions and other air pollutants
  • Extend the benefits of projects that reduce greenhouse gas emissions and air pollution to American communities, especially those that are low-income and disadvantaged
  • Mobilize financing and private capital to encourage further deployment of projects that reduce greenhouse gas emissions and air pollution
Jessica Russo/NRDC


The National Clean Investment Fund

The $14 billion National Clean Investment Fund (NCIF) competitively selected three applicants to establish national clean financing institutions that will provide accessible and affordable financing for clean technology projects across the country. These organizations will collaborate with private-sector investors, developers, community organizations, and others to deploy projects, scale up private capital mobilization, and enable millions of Americans to benefit from reduced energy bills, cleaner air, and job creation. 

All three selected applicants (listed below) intend to exceed the program requirement of allocating at least 40% of capital to low-income and disadvantaged communities (LIDAC). This commitment extends to historic energy communities, areas with environmental justice concerns, communities of color, rural communities, tribal communities, and more. 

  • Climate United Fund ($6.97 billion award): Climate United was created by Calvert Impact and focuses on investing in distributed clean power generation and storage, net-zero retrofits of homes and small businesses, and zero-emission transportation. Climate United’s program will invest in harder-to-reach market segments, including consumers, small businesses, small farms, community facilities, and schools. The coalition aims to invest at least 60% of its funds in LIDAC, 20% in rural communities, and 10% in Tribal communities.
  • Coalition for Green Capital ($5 billion award): With 15 years of experience, CGC has been instrumental in establishing and collaborating with numerous green banks across various states and localities that have catalyzed $20 billion into qualified projects. The CGC program emphasizes public-private investments and leverages the national network of green banks as a key distribution channel for investment. The organization’s program aims to allocate at least 50% of investments to LIDAC.
  • Power Forward Communities ($2 billion award): Power Forward Communities is a nonprofit coalition formed by five housing, climate, and community investment groups that aims to decarbonize and transform American housing, save homeowners and renters money, and tackle the climate crisis. The coalition members will build and lead a national financing program offering customized and affordable solutions for single-family and multi-family housing owners and developers with at least 75% of investments targeted at LIDAC.
Clean Communities Investment Accelerator 

The $6 billion Clean Communities Investment Accelerator (CCIA) selected five applicants to establish hubs that will offer funding and technical assistance to community lenders operating in LIDAC. This approach provides an immediate pathway to deploy projects in those communities while also enhancing the capacity of hundreds of community lenders to finance projects for years to come.

Each selected applicant will provide capitalization funding (typically up to $10 million per community lender), technical assistance subawards (typically up to $1 million per community lender), and technical assistance services. These services will enable community lenders to provide financial assistance for deploying distributed energy, net-zero buildings, and zero-emissions transportation projects where they are most needed. 100% of the capital under the CCIA is dedicated to low-income and disadvantaged communities.

The five award recipients are:

  • Opportunity Finance Network ($2.29 billion award): OFN is a nonprofit Community CDFI Intermediary with 40 years of experience that offers capital and capacity building for a national network of over 400+ community lenders. These lenders are primarily U.S. Treasury-certified CDFI Loan Funds, which together hold $42 billion in assets and serve communities in all 50 states, D.C., and several U.S. territories.
  • Inclusiv ($1.87 billion award): Inclusiv is a nonprofit CDFI Intermediary with nearly 50 years of experience that offers capital and capacity building for a national network of over 900+ mission-driven, regulated credit unions. This network consists of CDFIs and financial cooperatives in Puerto Rico that manage $330 billion in assets and serve 23 million individuals nationwide.
  • Justice Climate Fund ($940 million award): JCF is a purpose-built nonprofit supported by a coalition of members, a national network of over 1,200 community lenders, and ImpactAssets—an experienced nonprofit managing $3 billion. The fund’s focus is on offering responsible, clean energy-focused capital and capacity building to community lenders nationwide.
  • Appalachian Community Capital ($500 million award): ACC is a nonprofit CDFI membership organization that is launching the Green Bank for Rural America, a program aimed at providing crucial investments in coal, energy, underserved rural, and Tribal communities across the country. ACC will collaborate with CDFIs, federal grant recipients, and other community lenders to finance thousands of projects that will focus on reducing energy bills, improving air quality, and creating jobs in hard-hit communities.
  • Native CDFI Network ($400 million award): NCN serves as a national voice and advocate for Native CDFIs serving Native communities. With over 60+ CDFIs in 27 states, NCN addresses capital access challenges. NCN’s award supports its network of 63 community lenders, enabling financing for projects like distributed energy generation, net-zero buildings, and zero-emissions transportation in Native communities. The program collaborates closely with lenders to identify projects, assess capital needs, and provide capacity-building support.

Collectively, the impact of these organizations selected for CCIA and NCIF should reduce or avoid up to 40 million metric tons of carbon pollution annually over the next seven years. They are expected to mobilize nearly $7 of private capital for every $1 of federal funds. This approach ensures that each public dollar is leveraged for substantial private-sector investment. Additionally, they intend to allocate over $14 billion of capital—representing over 70% of the selections for awards announced—toward LIDAC.

Solar for All

Through the $7 billion Solar for All program, 60 awardees will establish new or expand existing low-income solar initiatives. These efforts will benefit over 900,000 households in LIDAC by providing access to distributed solar energy and will reduce 30 million metric tons of carbon dioxide equivalent emissions cumulatively. These Solar for All programs, collectively, will fulfill GGRF objectives by decreasing greenhouse gas emissions and other air pollutants. They will also bring electric bill savings to overburdened households and create new markets for distributed solar in 25 states and territories that previously lacked statewide low-income solar programs.

The selected applications consist of 49 state-level awards, six awards to Tribes, and five innovative multistate awards. All selected applicants intend to invest in local, clean energy workforce development programs to expand equitable pathways into family-sustaining jobs for the communities they are designed to serve. View the 60 selected applicants on this table.


By investing in innovative projects and empowering communities, GGRF’s $27 billion commitment is intended to drive meaningful progress for a sustainable and equitable future. EPA is supporting communities across the nation in taking meaningful action against climate change through catalyzing public and private capital for projects that reduce harmful climate pollution, improve air quality, and lower energy costs. The GGRF model will stretch public dollars further through public private partnerships and ensure that these investments are reaching low-income and disadvantaged communities through a targeted approach.

To stay up to date on the latest GGRF information, check out the EPA GGRF page, and for more information on what’s in the IRA, check out CEBN’s Insight into the Inflation Reduction Act blog series. We will continue to update and produce new content as more guidance becomes available!