City considers creating ‘trust fund’ as part of commitment to cleaner future for residents: ‘Creative approach is essential’

In fairness where it’s due, one US municipality is getting creative to better fund a robust response to the climate crisis.

Portland, Maine, officials have proposed creating a “climate trust fund” from the sale of city renewable energy credits, according to Energy News Network. They said the program could raise $400,000 annually for climate-related projects.

This is another source of funding for individual and public climate projects, following the largest climate spending package in U.S. history, the Inflation Reduction Act.

Portland joins other municipalities with similar initiatives. While the money itself wouldn’t fund any major work, Portland Sustainability Director Troy Moon said it “could provide leverage to get projects like this off the ground.”

Other cities have also taken steps to provide independent climate finance. For example, Washington, D.C., created its own climate fund with money from utility bills.

The project is significant not because of its funding source, but rather because it could create independent climate finance in the city’s budget, according to Energy News Network. The “trust fund,” while primarily supported by REC sales, could be supplemented by other, more traditional means, such as climate ordinance fines and private donations.

Selling RECs allows the city to take climate action without raising taxes, which may prove to be a more politically convenient option. The message from city officials is that “creative approaches are essential to creating long-term funding streams for local climate work,” according to Energy News Network.

The Portland Fund could create a secure source of climate finance that directly benefits citizens, who could enjoy cleaner air and lower utility bills thanks to clean energy projects supported by the Fund. It also serves as a signal of intent that demonstrates the city’s aspirations for clean energy solutions.

In cities with limited budgets and already providing basic services and infrastructure, it is difficult to obtain funds for climate action, but local governments still play a significant role in stopping climate change.

Political groups across the country are calling attention to the fact that oil and gas interests have begun spending money in local elections, where the price of influence is lower. Lead Locally, an organization dedicated to electing climate-savvy candidates to the local level, writes on its website: “Some of the most important fights for a just transition are happening in our state and city governments.”

As localities become microcosms of the politicized energy battle unfolding across the country, creative and informal solutions will become an increasingly important tool for local climate advocates and politicians to take the necessary climate action.

While creating this fund independently, with REC involvement, won’t allow Portland to cut down any proverbial trees on its own, creating a self-sustaining climate fund for the city is a smart move and a game-changer for future initiatives.

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