Alberta Investment Management Corporation (AIMCo) has introduced a $1-billion fund, the Energy Transition Opportunities Pool (ETOP), focusing on energy transition and decarbonisation investments. The fund aims to reduce emissions within AIMCo’s portfolios over the long term, emphasising a dual approach of investing in low-carbon assets and encouraging greenhouse gas reductions among high emitters. The ETOP will target industrial decarbonisation, sustainable fuels, renewable energy, electrification, and energy efficiency.
AIMCo, responsible for managing public-sector pensions and endowments, plans to make its initial investments from the fund in the current quarter. The organisation, with $146 billion in assets managed globally, has considered climate implications in its investments for a decade. AIMCo categorises investments through an in-house taxonomy, ranging from green (emission-free) to “hard to abate” and a category called “black box,” representing opportunities for emissions cuts and improved disclosure.
Critics argue AIMCo lacks a net-zero emissions target, unlike some Canadian pension managers. However, AIMCo justifies its stance, asserting that maintaining ownership of high-carbon assets provides influence over environmental improvements. The organisation participates in investor groups advocating for climate-related disclosures and emissions reductions, emphasising its commitment to decarbonisation while accommodating diverse client goals and stages of defining net-zero targets.