Investing in Black Communities With the Greenhouse Gas Reduction Fund

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On the 158th anniversary of the chartering of the Freedman’s Savings and Trust Company, it’s important to highlight a key opportunity to drive federal investment in Black communities to address longstanding racial disparities caused by discriminatory energy, environmental and financial policy choices over the last century and a half: The Greenhouse Gas Reduction Fund (GGRF).

GGRF is a $27 billion fund designed to advance climate justice, and reach and benefit people and communities currently excluded from the green economy. Through its competitions, GGRF will direct capital and technical assistance to community lenders, like Community Development Financial Institution (CDFI) and Minority Depository Institution (MDI) credit unions that have deep roots in and strong records of accomplishment serving Black communities. The purpose of these funds is to develop and scale affordable loans and financing for projects and activities that reduce greenhouse gas emissions. This historic investment has the potential to address dramatic financial, economic and health disparities faced by Black and low-income communities. With community-owned and governed CDFI and MDI credit unions leading the way, GGRF will deliver real benefits to Black communities by creating good jobs in the green economy, improving health outcomes by reducing air pollution and helping households balance their budgets by reducing energy cost burden.