Here’s how we can equitably fund Minnesota’s transition to a carbon-free system

Last month Gov. Tim Walz signed into law a bill ensuring 100% carbon-free electricity by 2040. For those of us watching the climate crisis unfolding, this is a dream come true. Just this past fall the U.N. Secretary-General Antonio Guterres opened international climate talks with the following warning:

Thankfully we are on our way to a carbon-free economy in Minnesota. But let’s be clear: To achieve a carbon-free energy system is going to require a massive lift from all sectors of society. We are going to have to rebuild our energy infrastructure, retrain our workers, rethink how we build, how we farm and how we get around. We cannot have business as usual and meet these goals.  

As Minnesota transitions to a carbon free energy system, no one should be left behind. As part of our effort to engage the public in climate justice solutions, at Minnesota Interfaith Power & Light we’ve worked to help congregations and small businesses get to yes on solar. Unfortunately, many of the 24 projects in our portfolio are currently tabled because they are too small to attract large financiers.

How will we all be part of this new energy revolution if we can’t even get our projects financed?

The Legislature is currently considering a bill (HF2336/SF2301) to create the Minnesota Climate Innovation Finance Authority, introduced by Sen. Tou Xiong, DFL-Maplewood, and Rep. Emma Greenman, DFL-Minneapolis. If passed into law, the bill will be a publicly accountable financing authority whose mission is to help folks in communities across the state get access to the funds that bring these projects into the literal sunlight.

The climate finance authority would be able to help projects like ours succeed by pooling our projects together with others, or by “de-risking” — providing a loan guarantee — making it possible to get to yes.

The Coalition for Green Capital announced this week that since 2011, cumulative public-private investment caused by green banks has surpassed $14.85 billion. It’s time for Minnesota to get on the train.

The Environmental Protection Agency has just announced a $20 billion greenhouse gas reduction fund that states can apply for in 2024. This program will likely require up-front investment from state and private partners and the know-how to access technology and funds. If we have this proposed climate finance authority in place, Minnesota will have the potential to receive as much as $350 million of this pool. Just think how far these funds could take us if leveraged with private capital.

We don’t know what it’s going to cost to transition to a 100% carbon free economy, but we’re certain we don’t want to leave $350 million on the table.