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US Vice-President Kamala Harris. File photo: WOLFGANG RATTAY/REUTERS
US Vice-President Kamala Harris. File photo: WOLFGANG RATTAY/REUTERS

Washington — US vice-president Kamala Harris and Environmental Protection Agency administrator Michael Regan on Thursday announced eight organisations that will oversee the spending of $20bn in grants to fund tens of thousands of clean energy and transportation projects in disadvantaged communities across the US.

The $20bn, made available through the $27bn Greenhouse Gas Reduction Fund created in the 2022 Inflation Reduction Act, will largely be invested in projects ranging from home energy retrofitting programmes to off-grid renewable energy in communities that have not had access to green financing.

The selected organisations will create a national clean financing network that will help kick-start projects over the next seven years that are expected to reduce or avoid up to 40-million tonnes of climate pollution annually.

“The grantees announced today will help ensure that families, small businesses and community leaders have access to the capital they need to make climate and clean energy projects a reality in their neighbourhoods,” Harris said.

The Environmental Protection Agency plans to get the money to the organisations by September. The Greenhouse Gas Reduction Fund has been a target of congressional Republicans, who passed a resolution this year attempting to repeal what they have called a climate “slush fund”.

Three nonprofit coalitions comprising community development financial institutions, local green banks and other community lending organisations were chosen to distribute $14bn from a National Clean Investment Fund, that aims to support affordable clean technology projects nationwide.

Another five groups have been chosen to administer the $6bn Clean Communities Investment Accelerator, which will provide funding and technical assistance to community lenders working to back clean technology projects in low-income and disadvantaged communities.

Of the $20bn, at least $4bn will be dedicated to investment in rural communities and $1.5bn will be directed to programmes benefiting tribal nations. The grantees are expected to mobilise almost $7 of private capital for every $1 of federal funds they spend.

Reuters

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