This coverage is brought to you through a partnership between Grist and BPR, a public radio station serving western North Carolina. Gwen Christon operates an IGA grocery store in Isom, a town in eastern Kentucky facing high utility bills and limited grocery options. Climate change exacerbates these problems. After a devastating flood in 2022, with the help of the Mountain Association, she secured funding for rooftop solar and more efficient heating and cooling systems. This saved her enough on power bills to reopen and hire 10 additional employees.
The Mountain Association is a community development financial institution (CDFI), part of a network of lenders supporting entrepreneurs in rural and low-income areas like Appalachia. The Green Bank for Rural America, backed by a $500 million grant from the EPA, will provide funding for projects like community solar arrays and renewable energy apprenticeships in these areas. This initiative aims to enhance the lending capacity of CDFIs and promote investments in energy transition and climate resilience.
CDFIs have deep historical roots, providing support to projects that traditional banks might overlook. The green banking movement, which seeks to finance clean energy initiatives at the local level, is gaining momentum. Research shows that CDFIs have a positive impact on small-scale financial inequalities but may struggle to address systemic issues. By investing in cooperative and worker-owned enterprises, a more equitable distribution of resources may be achieved.
The Green Bank could help small lenders overcome bureaucratic barriers and scale up their impact in low-income regions. The goal is to target high-impact green projects in low-wealth rural communities, creating jobs and fostering economic growth in these areas. Initiatives like these could pave the way for a sustainable future in regions like Appalachia.
