NYC Comptroller pushes for $5bn private market expansion to bolster climate solutions

Mark Levine, the new New York City Comptroller, used his first New York Climate Week in the new role to propose that the City’s public pension funds expand their allocations to climate solutions.

Speaking during the annual climate gathering in New York, Levine recommended that three of the City’s five public pension funds expand their private market allocations by a combined $5bn.

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The move, which would involve New York City Teachers’ Retirement System (TRS), Employees’ Retirement System (NYCERS) and Board of Education Retirement System (BERS), could see the three funds expand their investments in a broad array of climate solutions. This could range from areas including renewable power generation, grid modernization, energy efficiency and storage, clean transportation, and building decarbonization, as well as technologies that can reduce pollution, strengthen energy and water security, and improve resilience to extreme weather, comptroller Levine said.

The move is driven by a desire to play into clean energy as a global investment trend whilst contributing to a more resilient energy sector and lower prices for consumers, he explained. “As the climate crisis places a growing strain on our infrastructure and the broader economy, investing in cleaner, more reliable and resilient energy that can lower costs and reduce emissions at the same time is an essential part of our prudent long-term investment strategy.”

He also accused the Trump administration of “a lack of leadership” on climate, highlighting that 223 ⁠manufacturing and clean ⁠energy projects, representing $82.9 billion in investment and 111,765 jobs had stalled or been cancelled across the US during the current federal administration.

Levine’s recommendation means that a range of investment opportunities in the sector will be presented to each pension board for consideration and approval, subject to each of the three Systems’ independent due-diligence and fiduciary review processes.

The new allocations would sit within the Systems’ existing net zero plan, which includes a goal to invest $37.8bn in the transition by 2035.

Earlier this year, NYCERS, TRS, and BERS committed $116m to the Sandbrook Climate Infrastructure Fund II, marking the first private markets climate-focused investment during Comptroller Levine’s term.