Why the time is now for communities to invest in ambitious and equitable climate planning
More so than at any point before in our country’s history, national, state and local government leaders are not only locked in on the target of reducing greenhouse gas emissions to combat climate change, but also interested in funding it.
The pace set by these leaders to move the country towards carbon neutrality is fast — and as we discuss below, it needs to be. At the national level, the United States has set 2030 as the date to reduce economy-wide emissions by 50 to 52% below 2005 levels, followed by a steep descent to net zero emissions no later than 2050.
Michigan’s own climate ambitions are in step with the national plan. Developed by the Michigan Department of Environment, Great Lakes and Energy, the MI Healthy Climate Plan sets the state on the path of carbon neutrality with a 50% carbon reduction by 2030, and fully carbon neutral by 2050.
For municipalities trying to abide by these federal and state goals, closing the gap between committing to carbon neutrality and implementing it can be challenging. Every community has its own unique climate problems to solve, goals to meet and climate equity issues to address. On top of all that are the logistical challenges of integrating sustainability into the community’s core operations, policies, ordinances and plans. Communities need input and support at all levels, adequate time, knowledge and people to collect and analyze data on greenhouse gas emissions, and the resources to set goals and develop programs that drive real change in the approach to sustainability.
In addition, complex equity issues need to be addressed to ensure that climate initiatives support vulnerable populations who are disproportionately impacted by the changing climate.
Growing a green economy makes dollars and sense
The stakes are high at all levels, but timing is key. Years from now, your community could be celebrating its move into a low-carbon and climate-resilient lifestyle with more jobs, equitable access to clean energy and better health outcomes. Or it could delay and leave unprecedented amounts of funding and economic development opportunities on the table.
Is your community ready to take advantage of the significant state and federal dollars being distributed for climate and sustainability projects?
Once a disputed use of time and money, ambitious climate and clean energy plans are becoming a high priority and feasible route toward economic development. Communities that adopt a climate action plan early on become leaders in the climate transition — giving themselves a knowledge-based competitive advantage and an economic edge. Federal programs like the Inflation Reduction Act of 2022 and Energy Efficiency and Conservation Block Grants, and Michigan’s MI Healthy Climate Plan are collectively giving billions of dollars to support local government clean energy plans.
$60 billion
The IRA alone is investing over $60 billion in critical clean energy, climate and electrification measures and contains numerous opportunities for municipalities to leverage these dollars to improve the quality of life for residents, reduce their utility costs, and modernize homes and businesses.
View IRA funding opportunities for climate and sustainability
$60 billion
The IRA alone is investing over $60 billion in critical clean energy, climate and electrification measures and contains numerous opportunities for municipalities to leverage these dollars to improve the quality of life for residents, reduce their utility costs, and modernize homes and businesses.
View IRA funding opportunities for climate and sustainability
Growing a green economy
The stakes are high at all levels, but timing is key. Years from now, your community could be celebrating its move into a low-carbon and climate-resilient lifestyle with more jobs, equitable access to clean energy and better health outcomes. Or it could delay and leave unprecedented amounts of funding and economic development opportunities on the table.
Is your community ready to take advantage of the significant state and federal dollars being distributed for climate and sustainability projects?
Once a disputed use of time and money, ambitious climate and clean energy plans are becoming a high priority and feasible route toward economic development. Communities that adopt a climate action plan early on become leaders in the climate transition — giving themselves a knowledge-based competitive advantage and an economic edge. Federal programs like the Inflation Reduction Act of 2022 and Energy Efficiency and Conservation Block Grants, and Michigan’s MI Healthy Climate Plan are collectively giving billions of dollars to support local government clean energy plans.
Along with this surge in state and federal funding, the available tax credits and investments for assessing, planning and implementing carbon reductions make it critical to take a strategic approach to your community’s climate action and sustainability plans.
Clean energy and climate action funds can be applied to a range of activities from planning through implementation that benefit different types of greenhouse gas reduction and climate resiliency programs, including:
- Adaptation to climate impacts like flooding and heat
- Home and building energy efficiency and electrification
- Electric vehicles
- Starting and growing green banks
- Easier and healthier ways to get around
- Pollution reduction
- Renewable energy generation
- Environmental and climate justice
There is no climate progress without equitable solutions
For communities wanting to transform their environment and economy by addressing climate change, understanding the assessments and developing plans to unlock this money is only part of the picture.
From substantial flooding and rising temperatures in metro Detroit to failing dams in Northern Michigan, it’s evident that our changing climate is overwhelming Michigan’s infrastructure and its people. While all of us are vulnerable to these pressures, in reality only some of us can afford to change our landscaping to deter flooding, or adjust our air conditioners to counter the heat. Others are left with not enough money, resources or information to address climate-related housing and health issues.
A strategic approach to clean energy can help communities solve this dilemma. Equitable climate solutions encourage clean energy investments that address energy poverty while also creating jobs and improving the housing stock. This in turn lessens the energy burden on individuals and the community, while increasing property values and improving health outcomes for all.
Communities that view climate planning and sustainability through the lens of equitable access will have a more competitive edge as they make their town or city a place where all residents can thrive.
The time is right for contemplating big solutions for reducing greenhouse gas emissions, transitioning cities and towns toward carbon neutrality and addressing the impacts of climate change on vulnerable populations.
Core decision making with climate and sustainability in mind
At present, community and municipal leaders have unrivaled support from state and federal entities to respond to climate change through mitigation and adaptation. Placing low carbon efforts at the center of municipal decision making, however, will require a new approach.
Changes in state and federal policies, complicated and expensive carbon assessments, limited capacity and underlying conflicts can cloud the path toward a low carbon and climate resilient community. The push to align with the federal and state visions for carbon neutrality by 2050 will be a catalyst to discover innovative ways to break through these barriers. A commitment to a low carbon economy can not only increase the chances of survivability on our planet and make your community a better place to live, but also increase climate equity, improve people’s overall health and create new jobs.
Michigan Saves, the nation’s first nonprofit green bank, is a prime example of an organization leading access to equitable lending in the areas of climate and sustainability.
Through its recent program, the Detroit Loan Fund (DLF), Michigan Saves addresses the lack of equitable financing for energy upgrades by partnering with credit unions and other financial institutions to provide accessible, affordable financing to Detroit homeowners, property and business owners and community organizations looking to make energy efficiency and renewable energy systems improvements.
A 2018 Michigan Saves study found that Detroit residents’ loan applications for energy retrofitting or energy efficient equipment were nearly twice as likely to be denied compared to other residents of Wayne County. Because of this, the DLF program lends directly to low- and moderate-income Detroiters through a process that is less dependent on credit scores, which often reflect the reality of systemic racism in Detroit and other Black-majority cities.
By lending directly to these consumers and organizations, Michigan Saves is successfully demonstrating that there is both demand and ability to repay from residents and organizations in Detroit and showing the world a more equitable way to distribute lending related to clean energy and sustainability.