US launches $6.4 billion fund to cut greenhouse gas emissions

The US Transportation Department on Thursday launched a US $6.4 billion emissions reduction program to be distributed over five years to states to fund projects to reduce greenhouse gas emissions.

The program was created under last year’s $1 trillion infrastructure bill to guide states toward greener policies such as creating trail facilities for pedestrians and bicyclists and projects that support the deployment of alternative fuel vehicles.

“Transportation is the sector that contributes the most carbon emissions in the US economy, which means that transportation must aspire to be a major part of the solution,” Transportation Secretary Pete Buttigieg told reporters.

According to the Biden administration, the new programme will be eye-opening for many states as they plan for cutting emissions by at least half compared with 2005 levels by 2030.

The $6.4 billion investment will require states to develop plans to reduce emissions from transportation. The fund will be distributed through a formula developed for state and local governments.

The transportation sector holds the largest share of US greenhouse gas emissions at around 27 percent in 2020.