Calvert Impact Capital releases statement on Inflation Reduction Act
Aug 12, 2022 | Bethesda, MD
Calvert Impact Capital applauded the passage today of the Inflation Reduction Act of 2022. The bill is expected to be signed into law imminently and includes significant funding that can be used to create a national green bank with a mandate to invest–both directly and indirectly through local green banks and other community based financial institutions–in energy and emission reducing projects.
Jenn Pryce, President and CEO, said:
"The provision for a Greenhouse Gas Reduction Fund (GGRF) in the recently passed Inflation Reduction Act is a game changer for the communities we serve. It will create a centralized national green bank to make it possible to reach households, businesses and communities that have not benefited from the energy transition to date. For nearly 30 years, we have supported the growth of community-based organizations to address inequality and climate change and the GGRF will dramatically accelerate our collective work to ensure that every American has access to clean, reliable, and affordable energy so the U.S. can meet our global emission reduction goals.
This legislation is the start of an urgent process to ensure that every public dollar maximizes the economic and health benefits for communities while saving our planet. To do this effectively will require a centralized entity supported by a broad coalition of trusted partners built to provide affordable financial products and services to communities historically left behind. Like we have done throughout the pandemic, we look forward to working with partners to translate this legislation into direct, positive impact on people’s lives.”
Among its major features, the Inflation Reduction Act includes $20 billion that can be used to create a single non-profit national clean power financing institution that will make investments with private sector partners to reduce greenhouse gas emissions, benefitting all consumers, with an explicit focus on low-income and under-resourced communities. In addition, state, local, and tribal governments can obtain $7 billion of capital for their own financial institutions dedicated to the same purposes.
Calvert Impact Capital has joined a broad coalition that has been supporting a national green bank given its promise to drive capital to projects for under-resourced and low- to moderate-income communities. Beth Bafford, Vice President of Strategy, added “The potential to quickly and effectively bring green investments to communities across the country by leveraging the existing community finance infrastructure is exciting. In our 30 years of supporting these lenders, we know they deliver for American communities and wholeheartedly believe that they will play a critical role in supporting an equitable energy transition.”