Inclusiv Celebrates the Passage of the Inflation Reduction Act at The White House
FOR IMMEDIATE RELEASE
Washington, D.C. (September 13, 2022) Inclusiv is honored to celebrate the passage of the Inflation Reduction Act (IRA) at The White House with colleagues from across the country and the leaders who fought for the passage of this critical legislation. We are proud to represent our more than 480 member Community Development Credit Unions (CDCUs) at this event and look forward to working with the Biden Administration to ensure that the IRA’s investments in climate finance not only reach but prioritize the people and communities most affected by the climate crisis, which are often the same people and communities who have been shut out of the mainstream financial system by redlining and other discriminatory practices.
The IRA established the Greenhouse Gas Reduction Fund, a $27 billion fund to support green and clean energy projects. Of these dollars, the Greenhouse Gas Reduction Fund sets aside $15 billion for investment in disadvantaged and low-income communities. Depository institutions, including credit unions, may not apply directly to the Fund. However, credit unions will be able to participate through non-profit intermediaries, and Inclusiv aims to serve as an intermediary to deliver Fund dollars to support our member credit unions in building their green loan programs. If designed for and by those who need it most, this Fund will provide critical support to combat the climate crisis for the communities that are climate-vulnerable and marginalized because of race, ethnicity, or immigration status.
“The Inflation Reduction Act and its $27 billion investment in green lending through the Greenhouse Gas Reduction Fund are a key opportunity for Community Development Credit Unions and Minority Depository Institutions (MDIs) to access flexible capital to drive green lending, reduce energy cost burdens and help communities to prepare for climate events. Community Development Credit Unions offer green lending products designed to meet the needs of low- and moderate-income and BIPOC communities because they are designed by and with their members. The IRA provides an ideal opportunity to drive climate solutions that meet environmental and energy justice goals. Community Development Credit Unions are the means to channel the capital where it's needed and to solutions with the greatest impact on climate, financial security and wealth building in redlined communities.”– Cathie Mahon, President/CEO of Inclusiv
Inclusiv’s Center for Resiliency and Clean Energy trains community-based lenders across the country on green lending, building capacity and infrastructure to meet the energy efficiency, resiliency and other climate finance needs of communities hardest hit by climate change. More than 400 CDFI, credit union and MDI lenders already offer green lending products and have originated more than $2.68 billion in green loans in recent years.
“CDCU, MDI and CDFI lenders are key to the successful deployment of the Greenhouse Gas Reduction Fund. In addition to their deep impact and strong relationships with their members, these community-based lenders are typically able to leverage public investment more than tenfold, putting the potential scale of financing for clean energy and climate resiliency from the Greenhouse Gas Reduction Fund at more than $200 billion.” – Neda Arabshahi, Vice President, Inclusiv Center for Resiliency and Clean Energy
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For media inquiries, contact:
Neda Arabshahi
Vice President, Inclusiv Center for Resiliency and Clean Energy
(929) 445-2251 / narabshahi@inclusiv.org