Give credit where it's due: One U.S. municipality is getting creative in order to better fund a robust response to the climate crisis.
Officials in Portland, Maine, have proposed setting up a "climate trust fund" sourced from the sale of the city's renewable energy credits, according to Energy News Network. They said the program could raise $400,000 a year for climate-related projects.
This comes as yet another source of funding for individual and public climate projects in the wake of the largest climate spending package in American history, the Inflation Reduction Act.
Portland is joining other municipalities with similar initiatives. While the money wouldn't fund any major works on its own, Portland sustainability director Troy Moon said it "could provide leverage to launch such projects."
Other cities have taken it upon themselves to provide independent climate funding as well. For example, Washington, D.C., has created its climate fund with money from utility fees.
This project is significant not because of the source of the funding, but rather because it could create independent climate funding in the city budget, per Energy News Network. The "trust fund," while primarily sustained by the sale of the RECs, could be augmented by other more traditional means such as fines related to climate ordinances and private donations.
The sale of the RECs does allow the city to take climate action without raising taxes, which could therefore prove to be a more politically expedient option. The message from city officials is that "creative approaches are essential to creating long-term funding streams for local climate work," per Energy News Network.
The Portland fund could create a secure reservoir of climate funding that directly benefits citizens, who could have cleaner air and lower utility bills with the clean energy projects supported by the fund. Furthermore, it serves as a signal of intent that demonstrates the city's aspiration toward clean energy solutions.
Climate funding can be hard to come by in cities that are already providing essential services and infrastructure on tight budgets, but local governments still have a significant role to play in arresting climate change.
Political groups across the country are keying in on the fact that oil and gas interests have begun spending in local elections where the price of influence is lower. Lead Locally, an organization dedicated to electing climate-savvy candidates at the local level, writes on its website: "Some of the most important fights for a just transition happen in our state and city governments."
With localities becoming a microcosm for a politicized energy battle raging across the nation, creative and backdoor solutions will become an increasingly important tool for local advocates and politicians to take the climate action that is needed.
While creating this fund independently with RECs won't let Portland officials pull up any proverbial trees on its own, creating a self-sustaining climate fund for the city is a savvy move and a game-changer for future initiatives.
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