$8.5 Million Allocated to Several States for Community Climate Financing
WASHINGTON — The Opportunity Finance Network (OFN), a prominent national intermediary and membership network for community development finance institutions (CDFIs) and mission-driven community lenders has announced a significant commitment of $8.5 million in loans and grants. This funding, sourced from its Finance Justice Fund, is allocated to six member CDFIs. The objective is to bolster products and services that enhance climate resiliency, reduce emissions, and integrate underinvested communities into the climate economy.
Initiated in 2020, the Finance Justice Fund by OFN has been instrumental in channeling over $210 million through loans and grants to 101 CDFIs. These institutions serve diverse communities, including rural, urban, and Native populations. The Fund was established with a clear vision: to align capital with the broader goals of racial, economic, and climate justice. This is achieved by drawing on corporate and philanthropic partnerships for impactful investments into CDFIs nationwide.
Harold Pettigrew, OFN President and CEO, recently emphasized the organization’s dedication to climate justice at COP28. “OFN is deeply committed to enhancing the capabilities of our extensive network of community lenders in leading climate-focused financing and capital deployment in underinvested areas across the nation,” he stated. OFN’s growing membership, which includes 410 CDFIs and mission-driven community lenders, is at the forefront of community investment and the pursuit of racial, economic, and climate justice. “The Finance Justice Fund was created precisely for this purpose, and our initial round of climate-focused capital will significantly boost the community investment initiatives of these six pioneering CDFIs in climate lending.”
The recipients of this round of funding have a significant presence across various states and Tribal communities. They include Coastal Enterprises Inc. in Maine, Craft3 in Washington state, Pacific Community Ventures in California, Partner Community Capital in West Virginia, Self-Help Ventures Fund in North Carolina, and the Solar and Energy Loan Fund (SELF) in Florida.
The climate investments from OFN’s Finance Justice Fund will support a range of products and services. These include low-interest loans for electric vehicles, solar panel installations, and energy efficiency retrofits. Such initiatives are designed to empower communities of color and low-income groups to actively participate in the climate economy.
OFN is also spearheading a movement to ensure that 100% of CDFIs become climate lenders by 2028. This involves offering climate-focused consumer, small business, housing, and community facility capital products. To achieve this ambitious goal, OFN is providing support, capital, and leadership to transform the community development finance sector into a climate finance leader.
In addition to direct climate lending, OFN equips its national network of CDFIs and community lenders with tools and training to enhance their climate lending portfolios. In 2023 alone, OFN trained individuals from 130 community lenders and other organizations.
Furthermore, OFN has recently made a historic bid to the Greenhouse Gas Reduction Fund. This move aims to scale up these activities and expedite the transition to clean energy in underinvested communities, marking a significant step in the organization’s ongoing commitment to climate justice and sustainable community development.
