Massachusetts cashes in on the first green bank

This new bank puts a whole new meaning to green money, prioritizing making affordable housing that is less harmful to the environment.

The Massachusetts State. House- on a sunny day in Boston.

There’s a lot going on at the gold-domed State House.

Photo by @bimbolie

In another first for the Bay State, Gov. Maura Healey announced the first-of-its-kind green bank that will be dedicated to making affordable, eco-friendly housing.

The Massachusetts Community Climate Bank will provide capital to encourage the use of clean energy and efficient technology in new housing developments. Think: Heat pumps, high-efficiency appliances, and solar panels.

This program will also help speed up Boston’s climate goals for greenhouse gases and decarbonization projects, including a 49% reduction in greenhouse gas emissions from residential heating by 2030. This is a game changer, since the building sector contributes over 25% of the total greenhouse gas emissions in the Bay State.

Curious where the money is coming from? The green bank will launch with $50 million in state funding from the Department of Environmental Protection. State officials also hope to utilize federal funds from the Inflation Reduction Act + attract private sector.

The bank will be housed within MassHousing, which already manages the state’s affordable housing finance + investment bank.

In the beginning, the bank will focus on the affordable housing market. Over time, the bank will offer additional decarbonization measures that will support local communities.