Michigan Clean Energy Program Sets Example for CUs, Leagues Nationwide

On Nov. 1, Inclusiv and the Michigan Credit Union League (MCUL), convened credit union leaders from across Michigan to celebrate Inclusiv’s $1.87 billion federal Greenhouse Gas Reduction Fund (GGRF) award for credit unions and begin the intensive work to design clean energy lending programs that will catapult low-income and disadvantaged communities’ efforts to create green jobs and businesses, and reduce energy cost burdens residents face.

We were joined by the Michigan Department of Environment, Great Lakes, and Energy (EGLE), which is leveraging the just-announced Michigan Climate Investment Accelerator to support Michigan credit unions and CDFIs in preparing for GGRF’s transformational capital, and ensuring Michiganders are successful in attracting federal and private capital to support a just transition to a greening economy.

Inclusiv and MCUL are working together to ensure that credit unions in Michigan are prepared to participate in this innovative state program and leverage federal and private capital to bring the benefits of investing in clean energy – lower utility bills, reduced air pollution and opportunity for local small businesses – to low income and disadvantaged communities across the state.

The Michigan Climate Investment Accelerator will be administered by Michigan EGLE’s Office of Climate and Energy and will unlock millions of dollars to support credit unions interested in financing clean energy projects for consumers, businesses, nonprofits and local governments throughout Michigan. The Accelerator has two key initiatives:

• Michigan Climate Investment Fund: An $11 million fund to support community lenders, including credit unions, in securing federal funds and effectively deploying this capital in Michigan communities.
• Michigan Climate Investment Hub: Located in Newlab @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 government to facilitate the development of investment-ready projects.

The Michigan Climate Investment Fund is an example of smart state policy that will expand the impact of GGRF investment, bringing more investment to the state and advancing renewable energy and energy efficiency financing in the communities across Michigan that are the most impacted by rising energy costs and poor air quality.

The Michigan Credit Union League, the state’s cooperative credit union network, will be critical in ensuring that credit unions in Michigan have access to the information and resources necessary to take advantage of federal clean energy grant dollars through Inclusiv’s CCIA program and through the MI EGLE’s Michigan Climate Investment Fund.

The Michigan credit union movement is focused on strengthening communities across the state, and Michigan’s Climate Investment Fund aligns with that mission. A central part of MCUL’s goals is to collaborate with partners to make the Michigan credit union community even stronger. That is exactly what is taking place following Inclusiv’s award. The MCUL team is excited to work with Inclusiv and the State of Michigan to get these dollars deployed. The 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 Michigan in a better place to combat ongoing climate change.

Both organizations will work out of the Newlab @Michigan Central Hub in Detroit where they can foster additional partnerships and engagement opportunities that will advance progress towards the GGRF goals.

Our partnership is a powerful model for how to best leverage federal and state resources that advance credit union green lending. We hope credit unions and leagues from across the country will be inspired by this new initiative in Michigan to advance similar policies in their states and work closely with Inclusiv to bring the benefits of green lending to low-income and disadvantaged communities in their states.

Patty Corkery is President/CEO of the Michigan Credit Union League and CUSG.

Cathie Mahon is President/CEO of Inclusiv in New York, N.Y.