Michigan Climate Finance Primer: The Past Few Years and the Path Forward

Have you recently moved to The Mitten? Are you seeking to pivot your career to climate finance? Both are true for me, and over the past year (my first as a dual-degree MBA/MS Erb Institute student at the University of Michigan), I’ve gotten a crash course in climate finance and its policy environment in Michigan. Key to acquiring this knowledge was my recent internship with the Michigan Climate Investment Hub. A public-private partnership established in 2025, the Hub seeks to attract and mobilize private capital in Michigan for renewable energy, electric vehicles, and energy efficiency projects. 

As the Hub’s Data Strategy intern, I designed the back-end database and data intake process for projects that the Hub will socialize with private investors, who are critical partners for these projects, especially after major federal funding changes within the past 1.5 years. In March 2025, EPA Administrator Zeldin cut $20B in Greenhouse Gas Reduction Fund (GGRF) grants, of which Michigan was a primary recipient, having received at least $325 million in committed capital and technical assistance. Now, organizations like the Hub are forging creative partnerships. This includes the Hub’s collaboration with the Community Infrastructure Center on the first state-specific “Deal Room,” featuring a portfolio of Michigan-based investment-ready projects. In an increasingly volatile political environment, state leadership and public-private coalitions are key to consistent, continued investment in climate-critical solutions.

Over the course of my internship, I saw three distinct factors that set Michigan apart in climate leadership:

1. Political strength: At the state level, the MI Healthy Climate Plan and 2023 Energy Legislation codified greenhouse gas reductions, while at the municipal level, cities redefined “utility.”

• The MI Climate Healthy Plan sets ambitious targets of 60% renewable power by 2030 and complete carbon neutrality by 2050. The Plan and its associated detailed implementation guides provide clear guidance for businesses as well as grant competitions–opportunities for private entities to get on board with renewables, EVs, and building energy efficiency.

• Ann Arbor’s Sustainable Energy Utility (SEU), authorized by voters in 2025, is transcending the traditional utility playbook with a commitment to 100% renewable energy generation distributed throughout the community.

2. Economic foundation: Nonprofit and private partners, including community development banks, drive consistent implementation consistently engaged in Michigan climate planning.

• Michigan is the home of the nation’s oldest nonprofit green bank, Michigan Saves, as well as a seasoned PACE (Property Assessed Clean Energy) program administered by Lean and Green Michigan. These groups come to the table with lending and technical assistance prowess, as well as proven business models.

• Further, Michigan has over 55 Community Development Financial Institutions (CDFIs) which have become increasingly engaged in building capacity to provide specialized financing for clean energy contractors, homeowners, community institutions, and more.

3. Social self-starters: beyond business and government, individuals and groups are taking initiative for climate action.

• Solar Faithful, helmed by renewables veteran Rob Rafson, aggregates and partners with houses of worship seeking to install solar on their roofs to reduce utility bills and combat climate change.

• In northern Michigan, the Great Lakes Business Network (GLBN) has united small business owners, tribes, and concerned citizens calling for the shutdown of the oil & liquid natural gas pipeline Line 5 in the Straits of Mackinac, nicknamed “America’s Most Dangerous Pipeline.”

We’ve seen in Michigan that the existence, persistence, and ambition of climate policies attract outside investment. Public-private partnerships then use grants and concessionaire capital to mobilize private capital at up to a 30:1 ratio. Organizations like the Hub democratize and translate legislation and economic trends into clear, tangible opportunities for everyday people to submit projects.

The result is that Michigan is recognized and rewarded for its leadership—ranked 6th nationally for clean energy jobs and prioritized by the GGRF awardee Justice Climate Fund as a key state to dig into and support ecosystem growth and development. As Michigan rises to meet this moment, I’m proud to call it my home.