Michigan Introduces Climate Investment Accelerator, Opening Gates to Billions in Clean Energy Funding

Today, Michigan proudly kicked off the Michigan Climate Investment Accelerator with the help of leaders from the national green and clean energy financing community. This initiative is set to bring huge opportunities, aiming to attract billions to fund clean energy projects that will benefit consumers, businesses, nonprofits, and local governments throughout Michigan.

The Accelerator is here to supercharge green lending efforts in Michigan, making it easier for families and businesses to access financing for innovative clean energy technologies. This initiative promises to create quality jobs, reduce energy costs, and contribute to the ambitious goals of the MI Healthy Climate Plan (MHCP).

Lieutenant Governor Garlin Gilchrist II is quoted as saying:

“Workers across Michigan are rolling up their sleeves and helping us invest in the future by expanding Michigan’s clean energy leadership. 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 is designed to empower community lenders—like community development finance institutions, credit unions, and green banks—by helping them tap into funding from the Greenhouse Gas Reduction Fund (GGRF). This fund, established through the Inflation Reduction Act, is a game-changer!

Here’s how it works:

1. Michigan Climate Investment Fund (MCIF): With $11 million earmarked to assist community lenders in securing federal funds, this initiative will provide $10 million in matching grants and $1 million in technical support, paving the way for even more impactful investments in our communities.

2. Michigan Climate Investment Hub: Based in Newlab at Michigan Central in Detroit, this hub is a dynamic space for collaboration among state officials, awardees of the GGRF, private investors, and community organizations. It aims to make Michigan a priority for GGRF investment and to develop projects ready for investment.

For all the details on the Michigan Climate Investment Accelerator and the GGRF, check out the Michigan Department of Environment, Great Lakes, and Energy’s website!

The Office of Climate and Energy at EGLE will lead this exciting initiative, working alongside Michigan’s community lenders, including the Michigan Credit Union League and the Michigan CDFI Coalition.

EGLE Director Phil Roos spoke up about the initiative:

“To win the fight against climate change, we need as many tools as possible at our disposal. 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.”

The GGRF brings a whopping $27 billion in investment to combat climate change and foster clean energy projects, particularly in low-income and disadvantaged communities.

Michigan’s community lenders are eager to step into this new green lending space, enhancing their local connections and expertise. With support from the GGRF, they’ll offer green loans for energy efficiency upgrades, renewable energy systems, electric vehicles, and beyond.

With continued efforts like the Climate Investment Accelerator, Michigan is setting the stage for a cleaner and more sustainable future. It’s all about ensuring that the benefits of clean energy financing reach every corner of our communities, allowing everyone to thrive as we move toward a greener economy.

With strong community partnerships and a focus on innovation, we are lighting the way for a healthier, more equitable future in Michigan. Let’s embrace this exciting transition together!

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