The Clean Growth Coalition, a nonprofit committed to growing access to clean energy technologies, has made a $200 million investment in GreenieRE, a reinsurance company designed to remove financing obstacles for decarbonization infrastructure.
CGC's investment aims to reduce costs and accelerate the transition to renewable energy technologies, such as solar and wind power, per Reinsurance News. Over the next 10 years, GreenieRE is projected to unlock over $30 billion in private capital for projects that expand access to cheap, nonpolluting energy.
Reinsurance News explained that one major setback in deploying large-scale energy projects is a lack of affordable, complete coverage. Green banks and community lenders often have trouble securing insurance products that accurately evaluate risks, which is essential to attracting private sector capital.
Uncertainty in assessing risks results in expensive and limited insurance options, slowing progress on the switch to clean energy. But the investment in GreenieRE, which is based in Vermont, will address these issues and speed up the transition.
One major area of focus for GreenieRE is low-income communities that don't have much access to clean energy insurance, preventing the rollout of these technologies in underserved areas. Reinsurance News reported that at least 50% of the company's insured value will go toward these communities, which will help reduce pollution and improve their quality of life. CGC's investment is expected to accelerate the deployment of cheap, clean power nationwide.
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GreenieRE's projects will have massive positive economic and environmental impacts. Direct projects are expected to generate over $5 billion and unlock $30 billion throughout the broader investment system. Along with these developments, the investment will provide job opportunities and reduce energy costs nationwide.
The initiatives will also prevent the release of up to 2.5 million tons of carbon pollution — the equivalent of the yearly energy consumption of over 300,000 homes.
CGC CEO Richard Kauffman said: "This partnership represents a crucial first step in removing barriers that restrict private capital and keep clean energy technologies costly for both developers and consumers. GreenieRE will play a key role in mobilising private sector support to empower state and local green banks, along with other lenders, to finance critical community clean energy projects that would otherwise struggle to secure private sector capital."
Jeff McAulay, CEO of GreenieRE, added: "We are grateful for CGC's leadership in creating the next generation of green financing institutions. With GreenieRE we follow a legacy of government-sponsored institutions to responsibly de-risk a major growing asset class using best practices from the private sector insurers."
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