Inclusive Prosperity Capital Receives $15 Million Loan for Community Energy Initiatives

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Inclusive Prosperity Capital (IPC) has received a $15 million loan to help make capital available to fund sustainability projects in underserved markets and communities.

The loan is from Amalgamated Bank and will help IPC invest in clean energy projects across the United States. IPC is a clean energy finance non-profit platform providing capital to energy projects in underserved areas.

The goal of the financing is to help provide energy security and resilience, as well as decarbonization to underserved markets and communities, according to the institutions. IPC says the loan will help accelerate those sustainability programs.

National philanthropy the Kresge Foundation also contributed risk mitigation through a previously announced $10 million guarantee to IPC. Amalgamated Bank, a subsidiary of Amalgamated Financial Corp. and a commercial bank advancing sustainability targets, says the loan is part of its community development strategy.

Community projects have increased in implementation and policy. California is working on a law to establish a statewide community renewable energy program, which includes incentives to facilities and organizations that serve disadvantaged communities. The recently passed Inflation Reduction Act also allocates more than $3 billion in grants toward community-based energy programs.

Green financing is becoming more widely used to help finance energy transitions and sustainability projects, even if markets have cooled in 2022. Various types of financing have been implemented this year, including CBRE increasing a sustainability-linked line of credit and insurance company FM Global offering a $300 million resiliency credit to its policyholders.

Vantage Data Centers secured a $300 million green loan geared toward building sustainable facilities. On a much larger scale, PepsiCo recently secured a $1.25 billion green bond.

Amalgamated Bank says it was the first US bank to set full portfolio targets under United Nations Net Zero Banking Alliance guidelines. Those targets include 49% reductions in emissions in its financing and operations by 2030 and being net-zero by 2045.

IPC is a 501(c)3 investment program, and the company says it is focused on expanding its mission-based capital and partnerships nationwide. It is a spin-out and partner of Connecticut Green Bank, which says it has distributed more than $2.26 billion in clean energy financing since 2011.