Climate Catalyst Fund accepting proposals to jumpstart forest biomass projects
The state’s new climate-finance program expected to expand to support array of project categories
SACRAMENTO — The California Infrastructure and Economic Development Bank (IBank), part of the Governor’s Office of Business and Economic Development, is now accepting project proposals for a new state program to combat climate change. Dubbed the Climate Catalyst Fund, the program will jumpstart critical climate solutions through flexible, low-cost credit and credit support. The program is open to both private and public sector applicants and will be flexible in offering a range of financial instruments to support innovative forest biomass projects.
Expected to expand over time to address California’s climate infrastructure goals, the Climate Catalyst Fund’s initial focus will be on projects that reduce wildfire threats through forest biomass management and utilization. Starting in 2022-23, the Climate Catalyst Fund expects to expand to include climate-smart agriculture projects.
The Climate Catalyst Fund is designed to mobilize public and private finance for shovel-ready projects that are stuck in the deployment phase, accelerating the speed and scale at which technologically proven, critical climate solutions are deployed.
“Wildfire risk is perhaps the most immediate and devastating manifestation of climate change in California,” said Dan Adler, IBank’s Senior Advisor for Climate Finance. “We can harness the power of new technologies to reduce this threat and use forest biomass to stimulate inclusive economic growth through advanced energy and construction materials, mobilizing public-private partnerships that reduce forest management costs, mitigate climate change, and reduce risks to life and property. The Climate Catalyst Fund will help bridge the financing gap that currently prevents these advanced technologies from scaling into the marketplace in a sector where the need for climate progress is so crucial.”
Those with forest biomass management and utilization 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. Projects may include (but are not limited to) sustainable vegetation management, forestry practices, and timber harvesting products.
“Given California’s urgent need to reduce the risk of catastrophic wildfires, prioritizing forest biomass utilization is a critical first step for the Climate Catalyst Fund,” said Scott Wu, IBank Executive Director. “The state of California, through IBank, is proud to provide public investment needed to bring private capital to the table so we can fast forward climate solutions. Creating and preserving jobs, reaching disadvantaged communities, and addressing climate change are all priorities for IBank and we are pleased to continually expand our offerings in climate finance to accomplish these critical goals.”
“In keeping with the sense of urgency demonstrated by Governor Newsom’s nation-leading climate investments, the Climate Catalyst Fund is another critical component of the state’s efforts to combat climate change,” said Dee Dee Myers, Senior Advisor to Governor Newsom and Director of the Governor’s Office of Business and Economic Development (GO-Biz). “Grant dollars alone will be insufficient to achieve the scale we need, and revolving loan funds like Climate Catalyst are a proven means of leveraging significant private capital, which is imperative in meeting the state’s climate goals.”
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
Email Karen, HERE
Office: 916.447.8474
Mobile: 916.207.9132
