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On April 22, 1970, Richard Lugar, then mayor of Indianapolis, declared the inaugural Earth Day “a day for contemplation, conversation, and action to halt and reverse the impending crisis.” Last year, 2023, was the hottest year since we started tracking global warming in the 1930s. Many studies document the physical and financial costs to families and communities of climate change due to changing weather patterns and extreme weather events such as drought and hurricanes.
The size and complexity of the climate crisis might appear daunting. However, novel approaches that are community-led and involve public-private partnerships show how people and communities across the globe are taking steps to ensure a sustainable future while driving innovation, prosperity and progress.
The Biden administration recently awarded more than $6 billion in grants nationwide to projects targeting the highest carbon-emitting industries. The grants also prioritize building local economies, creating quality jobs, and reducing emissions that affect health outcomes.
Three Indiana companies received grants from the U.S. Department of Energy to develop solutions that will combat climate change. Real Alloy Recycling in Wabash will create a zero-waste salt slag for its aluminum recycling facility. Heidelberg Materials in Mitchell plans to build a carbon capture, transport and storage system at its cement plant. And Kraft Heinz’s facility in Kendallville will upgrade, electrify and decarbonize its process.
Notably, local governments are not only investing in climate mitigation but also directing their attention to climate education. This dual focus is a positive development, as it not only addresses the immediate challenges of climate change but also builds a foundation for long-term resilience. The increasing investment in local climate adaptation and resilience projects underscores the importance of climate justice and advocacy, particularly in communities of color.
Thanks to the generous funding from the Climate Works Foundation, the Lilly Family School of Philanthropy embarked on a groundbreaking study. This research delved into how U.S.-based not-for-profits allocate their resources to combat climate change. It’s worth noting that relatively few studies have taken this unique not-for-profit perspective on climate change spending.
We estimate that U.S. not-for-profits spend $7.8 billion to $9.2 billion annually on programs and activities that address climate change. By focusing on how the not-for-profits on the ground view their work, we gain insight into which strategies and components of climate resilience are most effective.
The study also reveals strategies that can help not-for-profits better address climate change. Specifically, funders can adopt more flexibility and unrestricted grants to allow not-for-profits to act promptly. Respondents also said funding and strategies should center on racial equity and climate justice to address the unequal impacts of climate change.
There are several takeaways from studying the climate philanthropy landscape. First, we need greater collaboration between not-for-profits and philanthropic funders and between government and for-profit businesses. Projects that engage universities, civil society and government will also be essential for making long-term climate change.
Second, we can push for a greater focus on equity and justice, bringing together the communities most affected by climate change.
Finally, climate education and awareness are critical areas that can benefit from funding. Ultimately, we all need to be part of the solution.•
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Osili is professor of economics and associate dean for research and international programs at Indiana University Lilly Family School of Philanthropy. Send comments to ibjedit@ibj.com.
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