What is the Illinois Climate Bank?

The Illinois Climate Bank advances clean energy financing and climate resilience initiatives in Illinois. The Climate Bank was established under the Climate and Equitable Jobs Act (CEJA) of 2021, operates within the Illinois Finance Authority (IFA). The Climate Bank has secured nearly $400 million in federal funding from programs under the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA). This funding, along with mobilized private capital, will support a wide range of energy efficiency, renewable energy, and decarbonization projects across the state. As Illinois’ official Climate Bank, it serves as a financial hub to support equitable clean energy opportunities and help communities transition to sustainable infrastructure. 

The Illinois Climate Bank’s mission is to accelerate private capital investment into clean energy projects while ensuring that benefits reach communities across all geographic, racial, ethnic, gender, and income-level backgrounds.

The Climate Bank integrates four core principles into its operations: 

• Partnerships with public, private, and nonprofit entities to expand funding opportunities. 
• Quantifiable Progress on Climate, ensuring measurable reductions in greenhouse gas emissions. 
• Build It Here, prioritizing projects that support local economic growth and job creation in Illinois. 
• Labor Involvement & Participation, ensuring equitable workforce opportunities in the clean energy sector. 

ICB Scope

The Illinois Climate Bank plays a critical role in financing clean energy infrastructure and expanding access to affordable and sustainable financing for municipalities, nonprofits, businesses, and other stakeholders. Recent legislative advancements have strengthened its ability to provide financial assistance:

• Effective January 1, 2024, the Climate Bank is able to directly lend to municipalities for solar, building efficiency, and electric vehicle (EV) projects. 
• Effective August 9, 2024, ICB is able to lend to park districts, school districts, fire protection districts, townships, and other local government units. These legislative changes enable low-cost financing for clean energy infrastructure, ensuring greater accessibility for local communities. 

Through these efforts, the Illinois Climate Bank continues to drive sustainable investment, expand clean energy access, and build a more resilient Illinois. Its initiatives help reduce energy costs, create jobs, and support environmental justice, reinforcing its commitment to a cleaner and more equitable future.