Enhancing the Greenhouse Gas Reduction Fund

In 2022, the Inflation Reduction Act (IRA) authorized the Environmental Protection Agency (EPA) to establish the Greenhouse Gas Reduction Fund (GGRF) with a goal of mobilizing financing and additional private capital for greenhouse gas- and air pollution-reducing projects, with special attention to low-income and isadvantaged communities (LIDACs).

The John D. and Catherine T. MacArthur Foundation (MacArthur) contracted with the Center for Impact Finance at the University of New Hampshire’s Carsey School of Public Policy to identify and assess the ways foundations and other catalytic capital investors can support the effective and equitable implementation of GGRF. In particular, the Foundation sought to identify investment opportunities for vehicles such as program-related investments (PRIs).

We interviewed fifteen key stakeholders in the community development finance field and clean technology ecosystem about anticipated constraints on GGRF funding and potential solutions and enhancements, including all eight organizations/coalitions that have since been selected as National Clean Investment Fund (NCIF) and Clean Communities Investment Accelerator (CCIA) recipients and one Solar for All (SFA) recipient with national reach. The interview list is documented in the Addendum.