The investment is expected to play a crucial role in attracting private sector participation in the clean energy transition and fostering a more equitable and sustainable energy future.

According to reports, GreenieRE, a licensed industry association captive domiciled in Vermont, will specialise in offering customised insurance solutions to mitigate key risks faced by developers and investors in the decarbonisation sector.

By providing tailored insurance coverage, GreenieRE aims to reduce investment barriers and accelerate the deployment of clean energy infrastructure. A key focus of the initiative will be to support underserved communities, with at least 50% of the insured value dedicated to projects that expand access to affordable and reliable clean energy in these areas.

CGC’s Chief Executive Officer Richard Kauffman commented, saying: “The private sector has demonstrated a strong willingness to invest in expanding clean energy access for Americans. However, significant bottlenecks continue to hinder efforts to lower costs and accelerate the deployment of these technologies. 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:  “The global energy transition needs high-impact risk management solutions and insurance is a proven, commercial and scalable structure. Our priority is the most efficient use of federal funding to achieve maximum impact for end users. 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.”