California IBank’s Climate Catalyst Fund expands to support climate-smart agriculture, spur innovation
The state’s recently launched climate-finance program expands to support agricultural technologies and practices that reduce environmental impacts and promote resiliency in a changing climate
SACRAMENTO (August 2, 2022) — With the passage of California’s 2022-23 state budget, $25 million has been provided to the California Infrastructure and Economic Development Bank (IBank) to finance climate-smart agriculture projects. The funds will expand the impact of IBank’s recently launched Climate Catalyst Fund to include projects that support agricultural productivity in a changing climate, improve efficiency and reduce emissions across the agriculture sector, and recognize the potential to capture and store greenhouse gas emissions via agricultural practices.
“The rapidly evolving field of climate-smart agriculture presents some of the most compelling opportunities to support climate resilience in a critical industry while also directly reducing global warming pollution,” said IBank Deputy Director for Climate Finance Dan Adler. “The effects of climate change in agriculture are obvious today – and so, increasingly, are some of the solutions. And as a global leader in agricultural productivity and innovation, what California does to address the climate crisis can have truly global significance. We hope this program can help point the way forward.”
Flexible, low-cost credit/credit support for climate solutions
Launched earlier this year, the Climate Catalyst Fund jumpstarts critical climate solutions through flexible, low-cost credit and credit support. The fund is designed to mobilize public and private finance for shovel-ready projects that need support in the deployment phase, accelerating the speed and scale at which technologically proven, critical climate solutions are deployed.
The program is open to both private- and public-sector applicants. The fund is also accepting applications for projects that reduce wildfire threats through forest biomass management and utilization.
“We are excited about the opportunity the Catalyst Fund presents as an additional financial tool to support California producers adopting climate smart practices to enhance productivity, improve water and energy efficiency, and sequester carbon,” said Secretary of the California Department of Food and Agriculture Karen Ross.
Eligible climate-smart agriculture project types
Climate Catalyst supports California’s climate infrastructure goals by financing agricultural improvement projects that enhance the climate or lessen the impacts to the climate caused by in-force agricultural practices. Eligible project categories include (but are not limited to): On-farm and food processing renewable energy, including electricity, fuels, and bioenergy
- Energy, water, and materials efficiency
- Methane reduction projects that use best practice approaches consistent with state policy goals – excluding dairy digesters and biogas production, unless the output is used or distributed onsite
- Energy storage or microgrids
- Equipment replacements
“We know there are climate-smart innovators out there with projects that need help getting that last bit of financing to make their solutions a reality,” said IBank Executive Director Scott Wu. “Meeting unmet market needs is what we do at IBank. With the health of the entire planet at stake, you cannot overstate the importance of these projects. The role of state government in these public-private partnerships is making things possible when it matters most.”
Those with smart agriculture projects that have firm expressions of interest from other financing parties should visit IBank’s Climate Catalyst webpage to complete the project proposal Intake Form.
About the California Infrastructure and Economic Development Bank: IBank was created in 1994 to finance public infrastructure and private development that promote a healthy climate for jobs, contribute to a strong economy, and improve the quality of life for Californians and communities throughout the state. IBank is located within the Governor’s Office of Business and Economic Development and is governed by a five-member board of directors.
IBank issues tax-exempt and taxable revenue bonds, provides financing to public agencies, provides credit enhancements, acquires and leases facilities, leverages state and federal funds, and provides loan guarantees and other credit enhancements for small businesses. Visit us at ibank.ca.gov.
Karen C. Naungayan
Deputy Director of External Affairs
Office: 916.447.8474
Mobile: 916.207.9132