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Mission and history


The purpose of the Minnesota Climate Innovation Finance Authority (MnCIFA)
is to accelerate deployment of clean energy projects through innovative green financing. 

Why does Minnesota need green financing?    

The purpose of the Minnesota Climate Innovation Finance Authority (MnCIFA) is to accelerate deployment of clean energy projects through innovative green financing. We make strategic use of public funds through innovative financing mechanisms in order to leverage existing public and private sources of capital. Our flexible financing serves to reduce upfront and total costs of clean energy projects, especially in low-income communities, ensuring that all Minnesotans share the benefits of clean and renewable energy.  

MnCIFA fact sheet (PDF) 

 

Climate

We tackle challenges of Minnesota’s changing climate by:  

  • Building our state’s clean energy economy  
  • Helping communities prepare for more extreme weather
  • Transitioning Minnesota to a future where energy is more affordable and reliable, safer and cleaner  

Innovation

We offer innovative financing that:  

  • Fills the gaps in financing for clean energy projects  
  • Enhances private, nonprofit, and public investments in funding clean energy elements that can be added to projects  
  • Emphasizes capital for underserved markets and communities most challenged by our changing climate  

Finance Authority

We offer flexible financing for projects that meet certain qualifications such as:  

  • Loans (not grants) with financial ability to repay  
  • Minimum $250,000 loan, with option for revolving or portfolio loan funds  
  • Site jobs paid prevailing wage
  • Demonstrated benefits to save energy, save money, reduce greenhouse gas emissions, and maintain energy reliability  

History

MnCIFA was created in state law 2023 as a publicly accountable financing authority commonly known in other states as a “green bank.” 

Key provisions of MnCIFA’s statutory requirements:   

Subd. 4. Authority duties:  

  • Serve as a financial resource to reduce the upfront and total costs of implementing qualified projects;
  • Ensure that all financed projects reduce greenhouse gas emissions;
  • Ensure that financing terms and conditions offered are well-suited to qualified projects;
  • Strategically prioritize the use of the authority's funds to leverage private investment in qualified projects, with the aim of achieving a high ratio of private to public money invested through funding mechanisms that support, enhance, and complement private lending and investment;
  • Coordinate with existing federal, state, local, utility, and other programs to ensure that the authority's resources are being used most effectively to add to and complement those programs;

More info: Minn.Stat. 216C.411

MnCIFA Timeline

May 2023: Minnesota Legislature passes legislation creating the Minnesota Climate Innovation Finance Authority and Governor Tim Walz signs the legislation into state law. 

 

July 2023: MnCIFA is officially launched within the Minnesota Department of Commerce Division of Energy Resources. Temporary  

 

September 2023: Governor Walz makes initial appointments to the MnCIFA Board of Directors.  

 

November  2023: First MnCIFA Board of Director meeting takes place on November 15 and elects Bali Kumar as Chair and Tessa Haagenson as Vice Chair.  

 

January 2024: Peter Klein begins serving as temporary executive director for MnCIFA, through appointment by the Board of Directors. 

 

March 2024:  Board of Directors on March 26 approves MnCIFA’s first loan: $4.7 million for The Heights housing development in St. Paul to have its own geothermal energy system.  

 

November 2024: Kari Groth Swan becomes MnCIFA’s first permanent executive director, through appointment by the Board of Directors.  

 

December 2024: The Board of Directors and staff complete and submit to the Minnesota Legislature MnCIFA’s 2025-2026 Strategic Plan and 2025-2028 Investment Strategy plans. 

 

January to June 2025: Another six projects for renewable energy, totalling $17 million in investments, are processed by staff and approved by the Board of Directors.   

 

July 2025: Passage of H.R. 1 into federal law imposes massive changes to federal Investment Tax Credits for solar and wind energy. MnCIFA staff, in collaboration with the Board of Directors, begin working with partners and potential clients to adapt to the changing clean energy environment. 

 

August 2025: Lending portfolio surpasses $23 million in lending to a total of nine projects. 

 

October 2025: Board of Directors elects to re-appoint Bali Kumar as Chair and Tessa Haagenson as Vice Chair.