GreenieRE

Upon receipt of regulatory approvals, GreenieRE will be established as a non-profit insurance company devoted to alleviating risks holding back decarbonization infrastructure by leveraging commercial financial products. GreenieRE will be capitalized with an investment of Greenhouse Gas Reduction Fund proceeds.

Bottleneck risks constrain financing for decarbonization projects that could be funded out of low-cost capital from CDFIs, credit unions, regional banks or community banking organizations.

Decarbonization projects face risks that are unique to clean energy industry. Private insurers understand these risks well, but other traditional financial solutions deploy capital into a pool of projects where risks are measured through standardized methods.

This existing risk model leaves large swaths of the market unaddressed. When a project developer or lender cannot account for risks within this framework to the private insurance market, projects stall out and capital is redirected to opportunities with a higher perceived probability of closing.

As a result, energy transition investments have been disproportionately concentrated on the largest projects that are easiest to transact with large blue-chip stakeholders - at the expense of transactions that would support small businesses and Low Income and Disadvantaged Communities.

The goal is for GeenieRE to be established as an impact insurer that, following receipt of all applicable regulatory approvals, will issue policies in support of the clean energy transition.

We expect to issue policies to:

o   Local developers & installers deploying low-carbon projects, many of which are small or medium-sized businesses

o   Community lending institutions like CDFIs, Credit Unions and Green Banks

This structure will ensure that interests are 100% aligned first and foremost on achieving equitable decarbonization that impacts local communities.

GreenieRE has grown from a vision shared by stakeholders across the decarbonization ecosystem, initially led by Energetic Capital, the Coalition for Green Capital, InnSure, kWh Analytics, and ADL Ventures.

GreenieRE policies will be primarily underwritten and issued by Managing General Agents. This model will maximize comparative advantage across the insurance value chain.

MGAs are on the front lines of insurance innovation, developing new products and novel underwriting approaches to address risks. GreenieRE aims to support these MGAs to the extent that (1) products are addressing bottleneck risks in support of the decarbonization goals of the GGRF; and (2) projects cannot be supported by existing capacity providers (at all or without significant first-loss participation).

o Why distribute through MGAs?​

o   Lean operations​

o   Proximity to bottleneck risks, and expertise to address them​

o   Product development and innovation​

o   Strong case to create additionality – path to private capacity/reinsurance for MGAs