US to invest $20 billion in clean energy projects

The new projects will have a focus on disadvantaged communities.
Loukia Papadopoulos
The US is investing in clean energy.jpg
The US is investing in clean energy.


The Biden administration announced Friday it will invest $20 billion from the federal “green bank” for clean energy projects in the region.

This is according to a report by ABC News.

The money will come from two programs and will supply competitive grants to nonprofits, community development banks and other groups to invest in clean energy projects. Both funds will have a focus on disadvantaged communities.

The $14 billion National Clean Investment Fund will provide grants to up to three national clean financing institutions while the $6 billion Clean Communities Investment Accelerator will fund up to seven nonprofits that will work with other groups to provide access to investments needed to deploy clean technology projects.

Both the projects will be overseen by the green bank, formally known as the Greenhouse Gas Reduction Fund. Congress created this initiative as part of last year’s climate law.

US Vice President Kamala Harris called the new funds “the largest investment in financing for community-based climate projects in our nation’s history.”

She added that developers who build affordable housing in cities such as Baltimore “will now have the capital they need to install energy-efficient appliances in new units, to lower energy use and help tenants save on their electric bills,'' 

“When we invest in clean energy and electric vehicles, more of our children can breathe clean air and drink clean water,'' she said.

 “When we help folks upgrade their heating and cooling systems, we lower the cost of electricity, so working parents have more money for groceries and home repairs and school supplies. And think of all the jobs these investments will create.''

Meanwhile, Environmental Protection Agency administrator Michael Regan, whose agency is responsible for the green bank, told the Associated Press the funds offer a way to “tackle the climate crisis and reshape the economy” that will offer "transformational resources'' for many disadvantaged communities.

“These communities have been left behind in this transition, and it’s going to be a strong signal to the market for us to pull private capital off the sidelines.”

The sentiment was echoed by Maryland Sen. Chris Van Hollen, a Democrat who was involved in the regulation to develop a national green bank 14 years ago.

“These funds will serve as a force multiplier for private investment in clean energy projects to cut emissions and promote environmental justice in underserved communities across the country,'' said Van Hollen.

“This is really about ensuring that every person in this country is experiencing the best quality of life as possible with clean energy technology providing that landing,'' he concluded, according to ABC News.