A group of international investors said it is launching a Climate Endowment.
A group of international investors and entrepreneurs said Thursday it is launching a Climate Endowment to allow institutional investors to invest in renewable energy and related clean-tech assets as way to address the climate crisis and demand from European voters for a green revolution.
The Climate Endowment will focus on illiquid investments in sustainable and commercially viable technologies and business models resulting in a strong reduction in global carbon dioxide emissions. The founders of the endowment said the goal is to provide an attractive solution for European Union pension funds and insurance companies to invest in a largely untouched space and within their usual risk tolerances. The plan is to raise €20 billion ($22 billion) to €40 billion in assets under management.
"The shifting tide of public opinion on climate protection has reached a critical mass," said Jochen Wermuth, founder of Wermuth Asset Management and a founder of the Climate Endowment, in a statement. "The recent EU elections, as well as unprecedented 'Fridays for Future' protests, has signaled a clear demand for a green revolution."
The founders of the Climate Endowment are:
• Wermuth Asset Management, a family office and impact investing adviser.
• Mr. Wermuth, impact investor, principal of WAM and investment committee member of KenFo, Germany's €24 billion nuclear waste storage financing vehicle.
• AQAL, a multifamily office and investor in integrally sustainable companies.
• Markus Bodenmeier, co-founder AQAL, impact investor, particularly in renewable and energy efficiency companies.
• Patrick Horend, former special situations investor and risk manager at the Abu Dhabi Investment Council, a sovereign wealth fund and endowment-style investor.
They are being supported by a strong group of senior advisers, potential partners and supervisory board members:
• Mats Andersson, former CEO of AP4, a Swedish pension fund.
• Stephen Blyth, former CEO of the Harvard University endowment.
• Philippe Defosses, former CEO of Etablissement de Retraite Additionnelle de la Fonction Publique, France's largest pension fund.