The White House has announced a new initiative to create investment opportunities around climate change solutions.
Through the Aligned Intermediary initiative, public- and private-sector investors will be invited to channel significant amounts of institutional capital into investments in energy, agriculture, waste, and water worldwide. Initial long-term commitments to the initiative, which has already raised $1.2 billion in private funds, include $500 million from the University of California Regents; $350 million from the New Zealand Superannuation Fund; $200 million from the Alaska Permanent Fund; $100 million from TIAA-CREF; and $10 million from Tamarisc. The effort is launching with the support of the Planet Heritage Foundation, the Hewlett Foundation, the ClimateWorks Foundation, and the MacArthur Foundation.
AI will act as a matchmaker between developers, companies, and projects that seek debt and equity capital on the one hand and committed long-term institutional investors on the other. In its initial phase, before it is spun off as an independent organization in 2016, the initiative will be housed at and operate as a program of PRIME Coalition, a nonprofit organization whose mission is to empower philanthropic foundations and families with the tools they need to support companies and projects working to significantly reduce global greenhouse gas emissions.
"Major institutional investors are ready to put much more funding behind climate change solutions," said Peter Davidson, the initiative's director. "Unfortunately, the market has significant barriers that often preclude them from doing that. AI was created to work in close partnership with its long-term investors to better understand their specific needs in overcoming these blockages and challenges, with the goal of unlocking many billions of dollars in clean energy investment."