Reimagining Funding for Climate Justice: Beyond the IRA
The Inflation Reduction Act, which passed on August 2022, is one of the most significant pieces of legislation that US Congress has taken on behalf of clean energy and climate change. But what is it, and how exactly is it supporting the work of grassroots organizations - if at all? In this episode, we’re taking a magnifying lens to the Act and other funding mechanisms to see where the billions of dollars are being allocated, the emerging solutions we’re seeing in funding climate justice work, and where we go from here.
Script + Narration by @ariellevking
Research by @ariellevking + @diandramarizet
Audio Engineering + Music by @awesomenostalgia
Produced by @diandramarizet + @sustainablesabs
This episode is sponsored by @keen
Episode Transcript
Introduction
Welcome to the Joy Report— a podcast dedicated to sharing stories about climate solutions and environmental justice, grounded in intersectionality and optimism—brought to you by the organization, Intersectional Environmentalist. Tune in for a dose of climate joy and actionable steps you can take to help protect people and the planet. I’m your host, Arielle King, an environmental justice strategist and educator passionate about making environmentalism irresistible. This podcast aims to give you the tools you need to stay informed and take action to protect the planet.
In this episode, we’re exploring the various mechanisms, barriers, and successes in funding the climate justice movement. What even is the IRA and how has the Inflation Reduction Act advanced climate investments? What other federal processes are helping or hindering the movement? How else is movement building getting funded? Who and what models can we learn from to build a more equitable philanthropic system that meets the needs relevant to the challenges we face today? How can we better advocate for solutions in a ways that empowers us as community members?
The Problem
While we know that one single piece of federal legislation cannot achieve climate justice on it’s own, it is important to name the advancements in climate justice investments that we’ve seen over the last few years and talk about the barriers to access and success in order to use these tools most effectively. Grassroots, frontline, and intersectional organizations have been making tremendous strides to achieve just and equitable solutions for decades despite the ever-changing whims of our political landscape. Climate solutions must not only mitigate and adapt to the changing climate, but must also intentionally and actively right past wrongs against the frontline communities who have contributed the least to the climate crisis. With this in mind, let’s dive in.
A week after assuming office in 2021, the Biden administration issued Executive Order 14808, Tackling the Climate Crisis at Home and Abroad, which established the Justice40 Initiative— ensuring that at least 40% of the overall benefits of certain Federal climate, clean energy, affordable and sustainable housing, and other investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.
In the year and a half that followed, two additional major pieces of federal legislation were also passed: The Inflation Reduction Act (also known as the IRA) and the Infrastructure Investment and Jobs Act (IJJA, also known as the “Bipartisan Infrastructure Law). Together, these federal investments provide trillions of dollars for needed infrastructure improvements, clean energy projects, climate resilience, transit upgrades, and direct investment into communities historically overlooked and environmentally overburdened. While this unprecedented quantity of funding poses an opportunity unlike any other we’ve seen in US history, according to the Global Center for Climate Change, “there is also a great risk that this funding could [further] our dependence on fossil fuels if our cities, Tribes, community-based organizations, and other entities eligible to participate in programs are left out of the process.”
An audio archive of Biden talking about the IRA by Now This Earth:
“This bill would be the most significant legislation in history to tackle the climate crisis and improve our energy security right away. Now give us a tool to meet the climate goals that are set, that we've agreed to by cutting emissions and accelerating clean energy a huge step forward It invests $369,000,000,000 to secure our energy future and to address the climate crisis, bringing down family energy bills by 100 of dollars, by providing working families tax credits. It gives folks rebates by to buy new and efficient appliances, to weatherize their homes, and tax credits for heat pumps and rooftop solar.”
Signed into law in August 2022, the historic IRA aimed to address longstanding environmental injustices and advance a cleaner, more equitable, and just future. It includes $369 billion in clean energy and climate investments that will go towards a multitude of policy sectors. However, while it’s undeniably a step in the right direction, it’s essential to recognize the differences in legislative promises and their real-world impacts.
Since the IRA was signed into law, much has been said about its transformative potential. However, several challenges remain, hindering local governments and grassroots organizations from fully leveraging its benefits.
Some challenges include: the IRA enabling the sale of oil and gas leases in order to expand offshore wind infrastructure; providing tax credits for carbon capture that focus on incentives over penalties for the use of fossil fuels; and the high barriers to accessing these funds that have limited who can reap the benefits.
Although multiple agencies have issued implementation frameworks, uncertainties remain about how funds will actually reach underserved communities. Many local governments lack the capacity to inform residents and businesses about available programs, which limits the growth of these initiatives, and limits who can access the opportunities presented by them.
To begin to address this, the USEPA has selected 16 Environmental Justice Thriving Communities Technical Assistance Centers (or EJ TCTACs) that will receive a combined $177 million to support underserved and overburdened communities across the country. These centers will provide training and other assistance to build capacity for how to navigate federal grant applications, develop strong grant proposals, and effectively manage grant funding— while also providing guidance on community engagement, meeting facilitation, and translations and interpretation services for limited English-speaking participants, which has the potential to significantly remove barriers and improve access for communities with environmental justice concerns. Initiatives like this are absolutely a step in the right direction to ensure more equitable access to funding and resource allocation, and we’re excited to see all the growth that can happen with the support of these technical centers.
While these advancements are significant and absolutely worthy of recognition, federal legislation alone cannot bridge the disparities in climate funding. Is the IRA in its current state equitably providing funding and resources directly to the communities most impacted? Not necessarily, but it does offer better tools and more money than we’ve seen come from the federal government. The only way we can achieve true climate justice is by diversifying the methods we are using to create solutions. That’s why it’s important for us to understand the current landscape of climate and environmental justice funding more broadly.
[money register sounds]
The funding landscape for climate justice is potentially even more bleak in the private sector. A 2023 study conducted by the Justice, Equity, Diversity, and Sustainability Initiative at the Yale School of the Environment sheds light on the realities of environmental grantmaking. Analyzing nearly $5 billion in grants awarded by 220 foundations across 35 states, the study exposed stark inequities in funding allocation.
Despite growing awareness of the disparities in grant-making, the study reveals that several of the largest mainstream environmental organizations continue to receive more funding than all environmental justice organizations combined. A 2020 report by the Building Equity and Alignment Initiative found that only about 1% of environmental grant-making from 12 of the largest environmental funders went to environmental justice groups. And research by the Solutions Project found that half of philanthropic funding on climate issues goes to 20 national organizations, 90% of which are led by white people, 80% of whom are men. These disparities continue, in part, due to the advantages in size, staffing, and legacy— with larger organizations maintaining robust, established donor networks and dedicated grant-writing teams.
But the root cause of these disparities runs deeper. Factors such as race, gender, and the focus of organizations also play significant roles in determining funding outcomes. The Yale study found that while over half of the foundations surveyed funded organizations primarily focusing on people of color, less than 10% of the grants and grant dollars are awarded to organizations led by people of color. This statistic is in direct opposition to the goals of the environmental justice movement.
The findings in the Yale study and countless others underscore the systemic biases ingrained within philanthropic institutions. Conscious and unconscious biases in grant-making processes perpetuate inequalities, which hinder the very communities most in need of support from accessing vital resources for environmental work.
So, while federal initiatives like the Inflation Reduction Act offer glimmers of hope, they’re just one piece of the puzzle. True progress demands a comprehensive reimagining of the grant-making process, and a concerted effort to prioritize equity, transparency, inclusion, and justice.
[transition frill]
Intervention
Effective outreach, transparent and frequent communication, coalition building, and creativity are critical for achieving a climate movement truly made in the image of all of us.
Across the United States and beyond, environmental justice groups— namely those led by people of color, women, and youth— are shutting down coal-fired power plants; organizing to ensure stricter enforcements on environmental pollution (like the April 2024 EPA rule announcement to reduce toxic air pollution from an estimated 200 chemical plants); advancing access to sustainable and healthy housing; and engaging in other actions to address a plethora of environmental injustices. This includes efforts to mitigate climate change while preparing for its impacts.
However, despite their vital contributions, many of these grassroots organizations face significant challenges in securing funding. Traditional funding sources often overlook frontline communities and organizations led by those most impacted by environmental harm. This systemic issue perpetuates disparities and hinders the scaling up of effective solutions.
In response to this urgent need for equitable funding and amplification, initiatives like The IE Database have emerged. This newly launched search tool provides a platform for visitors to discover grassroots and intersectional organizations in their local areas and fields of interest. By facilitating connections between funders and frontline organizations, the database aims to bridge the gap between traditional funders and those directly affected by environmental injustices. By elevating the work of organizations led by frontline communities, this platform also helps empower funders to support solutions that are developed, led, and executed by those most impacted by environmental harm.
The importance of investing in these frontline organizations cannot be overstated. Time and time again, it’s been proven that solutions led by those most impacted by problems are the most effective and inclusive.
Since most underserved and environmentally overburdened communities have yet to experience a reality where our needs, voices, and contributions have been prioritized, it is our birthright to radically reclaim our power.
For this reason, we must also recognize the role of radical imagination in reshaping our approach to funding structures. And if you haven’t heard our season 1 episode on all things radical imagination, feel free to queue it up after this one.
Legislators have a lot to learn about what the world can look like beyond the confines of our current existence. More holistically integrating the diverse thoughts, contributions, and lived experiences of those most impacted by problems can strengthen the protections granted by laws and policies. That’s why community engagement is such a crucial element of environmental justice. And currently we’re experiencing an emergence of creative methods to tell stories that radically imagine futures in a way that can help inform future legislation, policy, and so much more.
I’m a firm believer that within radical imagination, climate fiction is one of the many avenues worth investing in to ensure that we can visualize the change we need to see, expand our imaginations and challenge current limitations. Climate fiction invites us to think beyond our present reality and envision alternative futures - by centering marginalized voices, we can radically imagine and building a new, more sustainable, and equitable future.
adrienne marie brown once said, “I believe that all organizing is science fiction - that we are shaping the future we long for and have not yet experienced”.
[futuristic overlay on the next paragraph]
In embracing radical imagination and investing in climate fiction, we open ourselves to new possibilities and perspectives, which fosters creativity and innovation in our collective efforts to address the climate crisis. Climate fiction can warn of what’s to come if we don’t take proper action and work toward a world that prioritizes people over profit, as my favorite author, Octavia Butler, did in her two Parable books. Or it can showcase how people of color can live in the future, Like N.K. Jemisin. Jemisin’s Broken Earth series and so many others do.
That’s why we love the climate fiction writing contest hosted by our friends at Grist, called Imagine 2200: Climate Fiction for Future Ancestors, which “celebrates stories that envision the next decades to centuries of equitable climate progress, imagining futures of abundance, adaptation, reform, and hope”. The competition website explains that a great Imagine story “is not afraid to explore the challenges ahead”, they’re looking for stories that incorporate real world climate solutions and climate science, as well as cultural authenticity that centers a deep sense of place, customs, cuisine, and more.If you’re listening to this episode around the release date, there’s still some time to submit your story by June 24, 2024 for this year’s contest. We’ve linked the submission site to the show notes.
Fortunately, there are multiple organizations engaging in radically imagining funding structures for climate justice.
Main story
In the early pages of the book All We Can Save: Truth, Courage, and Solutions for the Climate Crisis, we are reminded of this:
[dreamy, inspiring soundscape]
All around the world, women and girls are making enormous contributions to climate action: conducting research, cultivating solutions, creating campaign strategies, curating art exhibitions, crafting policy, composing literary works, charging forth in collective action, and more. Look around and you will see the rise of climate leadership that is more characteristically feminine and more faithfully feminist, rooted in compassion, connection, creativity, and collaboration.
That’s why we’re highlighting two Black women-led organizations in this episode that are leading by example and being the change the climate movement so desperately needs:
Voice clip from Kim Moore Bailey of Justice Outside
“In March of 2023, professor Dorseta Taylor at the Yale School For the Environment published a paper that examines the disparities in environmental grant making. The research showed that white led environmental organizations received more than 80% of the grant dollars awarded. Doctor Taylor's study only serves to illuminate the need for grant making programs like Justice Outside's Liberated Pass.”
First is Justice Outside. Justice Outside is dedicated to advancing racial justice and equity in the outdoor and environmental movement. They prioritize shifting resources to, building power with, and centering the voices and leadership of Black, Indigenous, and People of Color communities.
Voice clip from Kim Moore Bailey of Justice Outside continued …
“For the past 10 years, Justice Outside has been working to change philanthropy in the environmental sector. Our liberated pass grant making program goes against the grain in both who we fund and how we fund.
In 2022, we granted 2,500,000 to a 116 organizations in the environmental and outdoor movement. And while doctor Taylor's study shows leaders of color are underfunded, 91% of the organizations we support are led by black indigenous and leaders of color. Our grant making is reparative in more ways than the numbers can capture it. We make it easy for leaders to access funds by not requiring 501c3 nonprofit status or a fiscal sponsorship. We make the application process accessible allowing audio, video and written applications that are succinct and easy and we give multiple year general operating grants.
We invest in the success and development of the organizations we partner with by offering or operational capacity building and technical assistance.”
Through initiatives like the Liberated Paths Grant-making Program, they aim to create a more just and sustainable outdoor and environmental movement. By focusing on empowering BIPOC communities, Justice Outside envisions a world where everyone experiences safety, health, and abundant joy through meaningful relationships with each other and the outdoors.
Voice clip from Kim Moore Bailey of Justice Outside continued …
“Black indigenous and people of color have a rich history of connecting to the outdoors and for centuries have been on the front lines of community driven work to build a better planet. All over the country, communities of color are fostering preservation, creativity, and connection with the land, air, and water. From healing to exploration, from community building to self discovery, we know that the environment around us has a life altering power, and we are working hard to ensure that everyone has access to it.”
Voice clip from Gloria Walton, Executive Director of The Solutions Project:
“What if I told you the solutions to the climate crisis exist in frontline communities all across the United States? That we can save a 100,000 lives from air pollution every year and create more than 9,000,000 good jobs, growing climate solutions from the ground up.”
The Solutions Project is another vital organization committed to funding and amplifying climate justice solutions created by frontline communities. They prioritize supporting grassroots initiatives led by BIPOC, immigrants, women, and other marginalized groups across the United States and Puerto Rico. Through their Solidarity Philanthropy approach, they center equity and justice in their grant-making efforts. The Solutions Project has invested over $31 million in grants to over 280 grantees— the majority of which are led by women of color. By pledging to invest 95% of their dollars in grassroots leadership of color, with at least 80% going to organizations led by women, they are actively working to address historic funding disparities. Their commitment to investing in these organizations has resulted in tangible victories, including shutting down pipelines, securing economic investments, and setting new policy standards.
Voice clips from Gloria Walton continued …
“The Solutions Project believes we must invest in the ideas of everyday heroes from the communities most impacted by climate change. Their solutions make our lives better and create a fairer, healthier, and more equitable society. Look at the example of frontline communities leading the push for 100% renewable energy, which is now replacing cancer causing sources like coal, oil, and gas. A total transition of our electricity to renewables is now law in half the country because of grassroots organizing and advocacy. Being closest to the problems, black, indigenous, immigrant, and other frontline communities, especially women, know what solutions are needed. They are innovative and effective. They train workers for green jobs, practice regenerative farming, build affordable housing and community solar. They coordinate disaster response.”
The Solutions Project also strategically allocates their funding to regions that are often overlooked by traditional philanthropy— directing 43% of their funding to the South, where frontline communities are underfunded and severely environmentally overburdened; 34% to the coasts, where environmental justice groups are continuing to build political power infrastructure; 19% to inland areas like the Midwest and Appalachia, where innovative green infrastructure projects are taking shape, and 4% to island territories like Hawaii and Puerto Rico.
Voice clips from Gloria Walton continued …
The Solutions Project and the collaborative funds we manage support over 300 grassroots groups building power and creating bold, practical climate solutions. Decision makers have taken notice, realizing frontline leaders are crucial to making change. But only a tiny percentage of climate philanthropy, media coverage, and public funding goes to frontline communities where it can make the biggest difference. The solutions project has the trust and the experience to bridge this gap. Our approach works, but the problem persists.
64,000,000 people suffer from pollution and 3,000,000 are displaced by climate disasters in the US each year. Communities of color and women bear the greatest burden and can therefore offer the clearest vision for action. Each of us has a part to play to scale community solutions, shift culture, and drive change.
These organizations exemplify the transformative potential of reimagining funding structures to prioritize equity and justice in the fight against the climate crisis. By centering the leadership and solutions of those most impacted by environmental harm, these organizations and others are paving the way for a more inclusive, impactful, and equitable climate movement.
[transition frill music]
A voice clip from Ena Coleman of The Solutions Project:
“My dream for the future of the climate justice movement is one that is inclusive of frontline communities at the decision making table. I envision a world where black, indigenous, Asian, Latinx, Pacific Islanders, and other communities of color who are most impacted by the climate crisis have the resources that they need to scale their solutions. This means centering their experiences and perspectives. Climate change is deeply connected to racial, economic, and social justice. It's not just about decarbonizing or achieving net zero.
It's about ensuring that all communities have access to safe drinking water, clean air, affordable housing, clean energy, green spaces, and more.
My dream extends to a future where organizations like the Solutions Project play a pivotal role in reimagining funding for climate justice beyond traditional instruments like the Inflation Reduction Act. By strategically allocating resources to BIPOC women led organizations and regions often overlooked by traditional philanthropy, we can empower communities to shape their own destinies and create a more equitable and sustainable future for all. I dream of a future where governments, corporations, and individuals alike take care of each other and our planet, where our collective effort leads to a thriving, sustainable, and equitable world.”
Call to Action
There are plenty of ways for you as an individual to support a more diversified and well-funded climate justice movement.
If you can, consider donating to grassroots and frontline organizations who are creating solutions every day with limited resources. By using the IE database you can find organizations near you and donate directly to their website. If you’re not able to donate funds, consider donating your time by volunteering your skills and by making connections that can lead to additional funding.
Consider reading more climate fiction. The more tools we have to visualize a better future, the more possible it will seem to create it. Remember, imagination is muscle. So if you’re wanting to contribute to the continued production of climate fiction, consider applying to the Grist climate fiction short story contest, either this year or in the years to follow.
Support initiatives that are being led by organizations working to be the change in this movement. For example - the last 4 years, The Solutions Project has celebrated Black Climate Week to honor the innovative climate solutions and environmental justice work that Black folks have been leading for years, while also calling in philanthropy and media to do a better job at investing in the communities most impacted by the climate crisis, and centering Black voices from the bottom up and the top down.
And if you work at a company or organization that provides grants, consider speaking up to help fund more diverse grantees. We all have a role to play in holding fund sets accountable to prioritizing equity and justice.
Other positive climate news
Here’s some other positive climate news you should know about:
The city of Denver recently started offering rebates for e-bikes, and this year they’ve introduced an equitable program that will delineate rebate amounts according to income levels. Excitingly, during their most recent voucher rollout, they sold out in 3 minutes!
In January, The Vineyard Wind became the first large-scale offshore wind farm in the U.S. and it’s already started supplying power to 30,000 homes in Massachusetts.
Brazil and France are investing $1.1B into the Amazon rainforest. French President Emmanuel Macron and Brazilian President Luiz Inacio Lula da Silva recently announced this four year plan which would include support for indigenous Amazon communities.
Additional IE updates
And in the world of Intersectional Environmentalist:
Check out ‘An Intersectional Approach to Earth Day’: a brand new toolkit now available on the IE website which takes us through the history of Earth Month. Dating back to the inaugural Earth Day in 1970, this toolkit calls for a reimagining of Earth Month that centers the experiences of marginalized communities, addressing systemic inequalities, and promoting environmental justice for a more inclusive and equitable future.
If you love this podcast and want to support IE’s ongoing resource development, please remember that sharing our resources across platforms, rating our podcast episodes, and donating to the organization helps us continue this work.
Outro
And remember, fighting the climate crisis is a marathon, not a sprint. We need everyone to get involved in a way that feels right for them, now more than ever.
Our individual positive actions do have power, and they’re strengthened when we do them as a collective. Tune in next episode where we’ll talk about the role industry must play in creating a more circular future for all.
I’m your host, Arielle King, and thank you so much for listening to this episode of The Joy Report.
