These community lenders already finance the full range of consumer, residential and small business energy projects, such as: Efficient home appliance upgrades; energy efficiency upgrades; electric vehicles; solar and solar-powered battery storage projects; and operating capital to grow small businesses that provide clean energy, and energy efficiency installation and contracting services. Examples of how CDCUs and CDFIs already lead in this critical community-based work include:

Cooperativa Jesús Obrero, based in Puerto Rico, was an early adopter of solar lending and has been a key community resource during climate-induced disasters. Since 2011, it has financed more than 500 photovoltaic solar systems in 26 municipalities across the island, and its renewable energy financing portfolio has grown to 10% of its total loan portfolio. The cooperativa installed solar at one of its own branches in 2015 to reduce energy bills and maintain power during climate events. After Hurricane María, Cooperativa Jesús Obrero was open and provided cash and vital community services within days, whereas mainstream banks on the island were closed for weeks after the hurricane. Aurelio Arroyo, executive president of Cooperativa Jesús Obrero and one of the authors of this opinion piece, recently stated that "the cooperativa greatly improved our disaster response capacity and continuity of operations after Hurricane María and is now putting that resiliency to work for our members and our community after Hurricane Fiona."
Clean Energy Credit Union, based in Colorado, serves the entire United States and was founded to promote clean energy using the cooperative credit union business model. The credit union offers loan products aimed at mitigating climate change, reducing pollution and improving public health, creating jobs and building community wealth, promoting democratic organizations, increasing energy independence and promoting personal finance independence. Within just five years of operating, Clean Energy has funded $110.9 million in clean energy loans to 6,929 households across the country.
Inclusiv's Center for Resiliency and Clean Energy trains community-based lenders across the country on green lending, building the capacity and financial infrastructure to meet the energy efficiency, resiliency and other climate finance needs of communities hardest hit by climate change. Inclusiv's research shows that 391 credit unions across the U.S. currently offer dedicated green loan products. Collectively, these credit unions represent more than 22.7 million members and over $360.4 billion in assets. Inclusiv surveyed just 40 of these credit unions and found they have collectively made more than $500 million in green loans in the past three years.

The Greenhouse Gas Reduction Fund is a powerful tool that, if deployed thoughtfully, can be used to ensure Black, Indigenous, Latino, and other disinvested and underserved communities can access the energy cost savings and investments in clean energy and disaster resilience that well-off, predominantly white communities already enjoy. To achieve this, the Biden Administration should partner with CDCUs as it implements the Fund. Together, we can scale equitable green lending programs that will help all communities thrive.

Instant Insights /

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