Open for business: Reed Hundt’s Coalition for Green Capital gets $5.1 billion for lending programs

Exciting News in Green Banking: Funding Authorized for Innovative Projects

If you’ve been following developments in green banking, you might remember the Inflation Reduction Act that was passed in August 2022. This landmark legislation opened the door for funding Reed Hundt’s Coalition for Green Capital.  See “Reed Hundt’s Coalition For Green Capital Wins Major Victory,” April, 2024.  

Well, the funding finally arrived last month.  $5.1 billion dollars!

Reed has been passionately advocating for this initiative for over 15 years.  It started during the Obama administration; see Reed’s book on how that Administration dropped the ball on climate: A Crisis Wasted.

Since 2009, he has worked tirelessly to gain support, including early involvement with the Biden campaign in 2020. His dedication exemplifies the need for persistence in getting these funds set earmarked and paired with private capital to finance energy generation and transmission projects that need a slightly lower cost of capital than a purely commercial project.   

In 2009, Reed founded the Coalition for Green Capital and brought together a consortium of 18 state and local green banks. Their collaborative efforts successfully raised and deployed a cumulative total of $20 billion to finance projects in those states and localities — about 2/3rds of which was from private sector sources.

Now, Action

With a growing team of 23 employees, Reed is more excited than ever to move forward. He’s even on the lookout for a new CEO to step in—ideally “someone a bit younger and funnier” to bring fresh energy to the effort!

Of the total $5.1 billion now available, approximately $1.5 billion will be allocated to the 18 state and local banks mentioned earlier. The remaining $3.5 billion will remain with Reed’s organization to fund further green energy projects that qualify for support.

There is no time to lose.  With the USA’s goal to “decarbonize the grid by 2035,” getting these new, clean-energy projects funded and built is critical. 

It’s great to see Reed’s efforts achieved a highly successful outcome.

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PRESS  RELEASE

August 16, 2024

CONTACT:
press@coalitionforgreencapital.com

CGC Receives $5.1B as EPA Obligates Greenhouse Gas Reduction Funding to Launch First US National Green Bank

Washington, DC–Today, the Environmental Protection Agency (EPA) announced that it has obligated $5 billion to the Coalition for Green Capital to capitalize the first US national green bank under the National Clean Investment Fund. With its $5 billion award, CGC will both invest directly in qualified projects and support the creation of a self-sustaining nationwide network of state and local green banks, community lenders, and community partners to drive the deployment of qualified projects in or directly benefiting every low-income and disadvantaged community (LIDAC) across the United States. In addition, $125 million was obligated to CGC under Solar for All to establish green banks and accelerate the development of solar in North and South Dakota.

CGC Chief Executive Officer Reed Hundt said, “The $5 billion grant from EPA will allow us to build the national green bank and a network with self-sustaining community lenders in every state. Directly and indirectly, we will construct the clean power platform that guarantees a healthier and better future for all Americans. I want to thank all the philanthropies, our many employees, volunteers, supporters, our terrific board, and, in particular, our congressional leaders—Senators Ed Markey and Chris Van Hollen, and Congresswoman Debbie Dingell—for their 15 years of unstoppable advocacy that has led us to this achievement.”

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ABOUT COALITION FOR GREEN CAPITAL
The Coalition for Green Capital (CGC), doing business as the American Green Bank Consortium, is a 501(c)(3) chartered specifically to reduce greenhouse gas emissions and other forms of air pollution and redress climate and energy-related environmental injustice. Green banks are a proven finance model that uses public and philanthropic funds to mobilize private investment in renewable energy, energy efficiency, and other decarbonization technologies. For over a decade, the Coalition for Green Capital has led the Green Bank movement, working at the federal, state, and local levels in the U.S. and countries around the world. For more information, visit: https://coalitionforgreencapital.com.