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FOR IMMEDIATE RELEASE
Nov. 1, 2024
Jeff Johnston, EGLE Public Information Officer, JohnstonJ14@Michigan.gov, 517-231-9304
MichiganInfrastructure@Michigan.gov
State launches Michigan Climate Investment Accelerator, unlocking access to billions in clean energy investment from Biden-Harris Administration’s Inflation Reduction Act
Program will scale green lending across Michigan, create clean energy jobs, lower costs, and advance MI Healthy Climate Plan goals
DETROIT – Today, the State of Michigan was joined by representatives from the national green and clean energy financing community to launch the Michigan Climate Investment Accelerator.
The Accelerator aims to attract billions of dollars to finance the development of clean energy projects for consumers, businesses, nonprofits, and local governments throughout Michigan.
By scaling up green lending in Michigan, the Accelerator will offer more families and businesses access to financing for clean energy technologies, create good-paying jobs, lower energy costs, and support the implementation of the MI Healthy Climate Plan (MHCP).
“Workers across Michigan are rolling up their sleeves and helping us invest in the future by expanding Michigan’s clean energy leadership,” said Lieutenant Governor Garlin Gilchrist II. “Thanks to historic investments from the Biden-Harris Administration, we are growing Michigan’s economy, creating high-skilled, good-paying jobs, and protecting the natural resources we are blessed to steward. The Michigan Climate Investment Accelerator will help us continue that work, investing $11 million and unlocking billions more from the Biden-Harris Administration’s Inflation Reduction Act to finance clean energy technologies, lower energy costs, and build on Michigan’s momentum as a climate leader. Let’s keep working hard to invest in Michigan’s future.”
The Accelerator will help community lenders like community development finance institutions (CDFI), credit unions, and green banks across the state secure funding from the Greenhouse Gas Reduction Fund (GGRF), created by the U.S. Environmental Protection Agency (EPA) through the Biden-Harris Administration’s Inflation Reduction Act (IRA). The accelerator includes two strategies to unlock federal and private investment:
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Michigan Climate Investment Fund (MCIF): An $11 million fund to support community lenders in securing federal funds and effectively deploying this capital in Michigan communities. The fund will provide $10 million in matching grants for community lenders and $1 million in technical assistance to help community lenders build capacity to apply for GGRF.
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Michigan Climate Investment Hub (Hub): Located in Newlab at Michigan Central in Detroit, the Hub is a public-private partnership that will foster partnerships among the State of Michigan, GGRF awardees, private investors, commercial lenders, community lenders, community organizations, philanthropic organizations, and local governments. The Hub was created through philanthropic support from The Kresge Foundation and aims to position Michigan as a priority market for GGRF investment and facilitate the development of investment-ready projects.
For more information on the Michigan Climate Investment Accelerator and the GGRF, visit the Michigan Department of Environment, Great Lakes, and Energy’s (EGLE) GGRF webpage.
EGLE’s Office of Climate and Energy – the office responsible for implementing the MI Healthy Climate Plan – will lead the Michigan Climate Investment Accelerator. The initiative was developed in partnership with Michigan’s community lenders, including the Michigan Credit Union League (MCUL) and the Michigan CDFI Coalition.
“To win the fight against climate change, we need as many tools as possible at our disposal,” said EGLE Director Phil Roos. “The Michigan Climate Investment Accelerator adds another tool to Michigan’s tool kit, unlocking billions in financing for clean energy projects from the Biden-Harris Administration’s Greenhouse Gas Reduction Fund. This initiative will help Michigan’s community lenders become green lenders, support the creation of good-paying clean energy jobs, lower energy costs, and help us achieve the bold goals of the MI Healthy Climate Plan.”
Accelerating green investment in Michigan
The GGRF is a historic, $27 billion investment focused on combating change by mobilizing financing and private capital for clean energy and greenhouse gas (GHG) emission projects across the country. The program emphasizes the growth of such projects in low-income and disadvantaged rural, urban, and tribal communities.
“This collaboration between the State of Michigan, Inclusiv, and other GGRF awardees is precisely the kind of partnership we need to build out the clean financing ecosystem, address the climate crisis, and generate new economic opportunities,” said David Widawsky, director, EPA’s Office of the Greenhouse Gas Reduction Fund. “This partnership recognizes the critical role community lenders will play in climate friendly economic development, enabling low-income and disadvantaged communities to access the capital they need to equitably and actively participate in the energy transition. This is just one example of how GGRF awardees are innovating to bring together public, private, and philanthropic sources of capital to fund projects all around the country and deliver on the promises of the Inflation Reduction Act and the Greenhouse Gas Reduction Fund.”
Community lenders in Michigan, including credit unions, CDFIs, and minority depository institutions, will be able to apply to receive funding and technical assistance from five national nonprofit organizations that were awarded a total of $6 billion under the GGRF earlier this year. Community lenders that successfully draw down GGRF resources will make green loans available for Michigan households and businesses for energy efficiency improvements, renewable energy technologies, electric heat pumps, electric vehicle charging equipment, and more.
“We applaud the State of Michigan for amplifying the impact of the federal Greenhouse Gas Reduction Fund through its Michigan Climate Investment Fund and Michigan Climate Investment Hub,” said Cathie Mahon, president and CEO of Inclusiv. “By supporting Michigan credit unions to design and scale robust green lending programs and to access the Inclusiv GGRF Clean Communities Investment Accelerator program, Michigan has created a powerful road map for driving effective and equitable clean energy financing. We hope other states will follow its lead.”
“The Justice Climate Fund is a proud supporter of the Michigan Climate Investment Accelerator,” said Justice Climate Fund CEO Amir Kirkwood. “In partnership with our network of community lenders, JCF supports projects that reduce emissions, lower energy costs, create jobs, and strengthen the resilience of local economies. Together, we’re building a healthier, more equitable future where underserved families and businesses thrive in the clean energy transition.”
Michigan’s community lenders have decades of experience serving low-income communities and now will bring their community-level relationships and expertise to green lending. As Michigan’s community lenders expand into green lending through the GGRF, they will need support in developing institutional capacity, better understanding green technologies, and meeting federal reporting requirements. The Michigan Climate Investment Accelerator will break down these barriers in partnership with the Michigan CDFI Coalition, MCUL, and Michigan’s nonprofit green bank, Michigan Saves.
“Our state’s support of Community Development Financial Institutions has an astounding impact – the 21 mission lenders who are members of the Michigan CDFI Coalition, are able to leverage up to $8 for every dollar of public funding,” said Elissa Sangalli, president of Northern Initiatives and chair of the Michigan CDFI Coalition. “These entities focus on serving low income and disadvantaged populations, meaning all of Michigan’s small businesses and under-resourced communities will have the capital needed to make themselves resilient to our changing climate, while making their communities healthier.”
“The Michigan credit union movement is focused on strengthening communities across the state, and Michigan’s Climate Investment Fund aligns with that mission,” said MCUL CEO Patty Corkery. “This funding, which can be used to enhance efforts like solar initiatives or cleanup projects, will help organizations provide much needed environmental stewardship in their neighborhoods and put our state in a better place to combat ongoing climate change.”
“As Michigan’s green bank, we’ve partnered with community lenders across Michigan for more than a decade to make green investments more accessible to everyone,” said Chanell Scott Contreras, president and CEO of Michigan Saves. “We’re excited to continue our partnership with the State of Michigan, GGRF awardees, and community lenders to leverage these catalytic investments in clean energy. By working together, the transition to a carbon-free future will be accessible to all Michiganders."
Michigan Climate Investment Fund
The MCIF, supported from an $11 million allocation through the Make it in Michigan Competitiveness Fund (Competitiveness Fund), is designed to overcome barriers to serving low-income communities by providing targeted grants to Michigan-based community lenders that successfully apply for support through the GGRF.
The MCIF aims to increase the number of lenders applying for and securing funding under the GGRF and make it easier to access for households and businesses as it is deployed. Community lenders can receive grants of up to $10 million through the GGRF for initial lending capital, which will be supplemented by a 5% matching grant or a minimum of $150,000, whichever is greater, from the MCIF. No single Michigan lender can receive more than $500,000.
“One Detroit Credit Union is deeply grateful for Michigan’s ongoing commitment to enhancing our lending capacity through initiatives like the Michigan Climate Investment Fund,” said Portia Powell, executive vice president of One Detroit Credit Union. “As a community lender serving local consumers and businesses since 1935, this support is crucial in empowering us to extend clean energy solutions to underserved communities. With increased support and access to funds like the GGRF, we can uplift those who need it the most, fostering economic growth and opportunity throughout Metro Detroit.”
The Competitiveness Fund is a $337 million state resource pool designed to unlock federally backed investments for infrastructure, health, and public safety projects, while advancing the state’s clean energy and economic development objectives.
Thanks to the investment from the Competitiveness Fund, the MCIF will ensure that Michigan capitalizes on this historic opportunity, driving the state’s clean energy transition and setting a precedent for other states. To date, the Competitiveness Fund has secured over $961 million in federal funds by investing nearly $186 million in state funds, a return on investment of more than 5:1.
“An investment in climate is an investment in our communities,” said Zachary Kolodin, Michigan’s chief infrastructure officer and director of the Michigan Infrastructure Office. “When we invest in climate, we invest in affordable housing, in good-paying job opportunities, and in lowering energy costs for Michigan families. That’s why the Competitiveness Fund is proud to support the Michigan Climate Investment Accelerator — because when we invest in climate, we’re investing in a stronger, more resilient future for every Michigander.”
Michigan Climate Investment Hub
The Hub, hosted by Michigan Central, is a dedicated space for the State of Michigan, national GGRF awardees, and Michigan- and Detroit-based stakeholders in clean energy development and financing to work, collaborate, and host educational events and convenings to increase green lending in Michigan.
Newlab at Michigan Central’s mission is to foster place-based solutions to create a more equitable, resilient, and sustainable world. It has over 1,000 members and more than 120 startups in its network. The Hub’s location at Newlab at Michigan Central offers a unique ecosystem with over 170 local partners, including venture capitalists and tech startups, which are critical for developing replicable pilot projects and programs that could serve as partners in deploying GGRF resources.
“Newlab is thrilled to be the home of the Michigan Climate Investment Hub,” said Newlab Detroit General Manager Riley Hall. “We believe co-locating these financial partners with our critical technology startups will enable strategic collaboration that accelerates innovation in clean energy financing and creates actionable opportunities to integrate emerging technologies into the development of clean energy projects across the state.”
“We are proud to see the continued momentum and growth of our innovation ecosystem, driven in part by the incredible work already happening here at Michigan Central and Newlab,” said Carolina Pluszczynski, chief operating officer at Michigan Central. “The Michigan Climate Investment Hub furthers our commitment to accelerating impactful technologies and solutions that will shape our collective future and will continue Michigan’s legacy as being a leading home of innovation. We’re excited to support the Hub and build a thriving community where forward-thinking ideas can flourish.”
The Hub is made possible thanks to an initial grant of $250,000 from The Kresge Foundation. This support and ongoing partnership with The Kresge Foundation will help provide the resources and talent necessary to make Michigan a national leader in enabling public-private partnerships that will aid in the development of investment-ready clean energy projects in local communities.
“Kresge is deeply committed to ensuring that all communities, especially in Detroit, benefit from the goals of the Inflation Reduction Act,” said Wendy Jackson, managing director of The Kresge Foundation Detroit Program. “We’re pleased to partner with the State of Michigan to ensure that the resources of this historic legislation benefit the residents of Michigan and Detroit through this new climate finance center located at Newlab. The co-location of so many like-minded lenders, investors, and entrepreneurs focused on climate action and climate justice will be a powerful engine for progress and equity.”
Michigan leads on climate and clean energy
In 2022, Governor Gretchen Whitmer released the MI Healthy Climate Plan (MHCP) as Michigan’s roadmap to achieving 100% carbon neutrality by 2050. In 2023, the Governor signed historic clean energy legislation to help implement the plan, making Michigan a national leader in the fight against climate change. Together, the MHCP and these laws will lower household utility costs; create tens of thousands of good-paying jobs; and protect Michigan’s precious air, water, and public health.
“We need to mobilize historic resources to reach the urgent goals in the MI Healthy Climate Plan – and we need to make sure those resources are accessible to everyone in a just and equitable way,” said Cory Connolly, chief climate officer in EGLE’s Office of Climate and Energy. “The Michigan Climate Investment Accelerator and expanded green lending capacity of Michigan’s community lenders will unlock billions of dollars for solutions to reduce greenhouse gas emissions, lower energy costs, and bring local benefits to Michigan households and businesses.”
A new report from Climate Power shows Michigan continues to be a national leader in clean energy and electric vehicle manufacturing, bolstered by the IRA.
Michigan is No. 1 in the nation for IRA projects, which have resulted in more than $26 billion in new investments across the state. This funding, in tandem with Governor Whitmer’s bipartisan economic development tools, is growing the middle class; creating good-paying, in-demand manufacturing jobs; bringing supply chains home; and lowering energy costs for families.
The 2024 Clean Jobs America Report shows that Michigan continues to lead the race for clean energy jobs, outpacing 44 states’ job numbers. Michigan is home to nearly 128,000 clean energy jobs, with clean energy jobs growing nearly twice as fast as economy-wide employment.
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