What’s going on in climate philanthropy?
Climate philanthropy is growing, and Jewish climate philanthropy can learn from the field
Climate philanthropy is expanding rapidly, offering Jewish funders lessons and opportunities. The scale of the climate crisis demands bold action. Philanthropy can take risks, fund early-stage solutions, and accelerate innovation that public and private actors may hesitate to support. Understanding the broader landscape helps make Jewish climate philanthropy more effective.
The Current Landscape: Growth and Gaps
Climate philanthropy is growing, yet it remains only a tiny proportion of overall giving. In 2023, global philanthropic giving totaled an estimated $885 billion, of which an estimated $9.3–$15.8 billion went to climate mitigation – up roughly 20% from 2022. Foundation funding specifically for climate reached a record $4.8 billion, nearly triple the $1.7 billion in 2019. Yet climate-focused philanthropy still accounts for less than 2% of total giving, highlighting a significant gap and opportunity for new donors.
Funding Trends, Gaps, and Opportunities (2019–2023)
Top-Funded Sectors
Clean electricity, forests, and food & agriculture received the most foundation funding, with public engagement (communications, and grassroots mobilization) as the leading enabling strategy.
Fastest-Growing Areas
Super Pollutants
Reducing potent short-lived gases like methane, supported by initiatives such as the Global Methane Hub.
Sustainable Finance
Nearly tripled in funding, advancing impact investing, corporate accountability, and low-carbon markets.
The Unique Role of Philanthropy and Key Players
Philanthropy unlocks systemic change, influencing governments, markets, and society. Some of the key platforms include: ClimateWorks Foundation (tracking funding and gaps), Redwoods Collective (due diligence support), Climate Lead and philanthropic collaboratives such as the Drive Electric Campaign the Global Methane Hub, and the Growald Climate Fund.
Case Study: Climate Lead
Climate Lead connects large-scale philanthropy to high-impact climate solutions, advising donors able to deploy $20–25 million or more. It views philanthropy as highly leveraged, risk-tolerant capital that can unlock systems-level change – especially in policy, research, and emerging solutions. Climate Lead provides curated learning journeys, evidence-based vetting, and peer networks, catalyzing over $5 billion in philanthropy to date. Their focus is on helping donors to understand where their philanthropic dollars can have the greatest effect on outcomes.
Crucially, Climate Lead make clear to new potential donors that there is no right way to address climate, but rather than each donor should craft strategies that align with their overall interests and commitments.
Philanthropy’s flexibility, speed, and risk tolerance allow it to fill critical gaps, making it a vital force for climate action today.
What are the different ways to make a difference?
( 1 ) Financial levers
Capacity-building and core support
Flexible funding develops leadership, strategic planning, and organizational capacity, enabling grantees to pursue ambitious climate goals.
Innovative finance
Program Related Investments (PRIs)
Below-market loans to nonprofits, counting toward U.S. foundation payout requirements.
Mission Related Investments (MRIs)
Deploying endowment funds for environmental impact while seeking market-rate returns.
( 2 ) Levers for systemic and policy change
These levers attempt to influence key societal systems:
Policy and lobbying
Philanthropy has advanced evidence-based climate policies, such as research and lobbying that has accelerated solar energy scale-up, driving a 90%+ drop in costs.
Research and innovation
Patient capital helps fund technological breakthroughs, such as net-zero emissions aviation or developing technologies to track super-pollutants.
International diplomacy
Funding data and analysis supports transnational climate engagement.
Legal strategies
Litigation can enforce emissions reductions, exemplified by Shell being ordered to cut global carbon emissions 45% by 2030.
( 3 ) Leveraging capital and influence
Philanthropists amplify impact through:
- Finance and investment strategy: deploying capital across climate tech, advocacy, and systemic change.
- Impact investing: achieving both financial return and measurable climate impact.
- Engagement and outreach: board service, mentorship, convening leaders, and sharing expertise.
Case Study: Project Drawdown
Data-driven insight for climate action. Project Drawdown integrates emissions sources, solutions, costs, deployment speed, and co-benefits. As Executive Director Jonathan Foley emphasizes:
“Climate action is cumulative over time. We can’t wait for perfect future technologies – we need the fastest, most effective solutions we have now.”
Drawdown Explorer allows comparison of solutions by size, cost, speed, and geography, highlighting regional dynamics from methane emissions to deforestation. Foley notes: “Only a small minority leads with climate as their top concern. Meeting people where they are is essential to unlocking scale.”
By combining grants, innovative finance, policy influence, and robust data, philanthropy can accelerate the adoption of high-impact climate solutions, turning knowledge into measurable change.
Not just grants: introduction to new finance tools
Most philanthropists begin with grants, funding causes they care about. Grants remain vital – but climate change is a global, systemic problem requiring literally trillions in capital annually for clean energy, resilient infrastructure, sustainable food, and nature restoration. Both policy institutions and investment banks are urging philanthropists to broaden their toolkit, using loans, recoverable grants, catalytic capital, credit enhancements, and equity investments to stretch impact and mobilize additional private and public funds.
A word about large numbers that are thrown around…
It’s estimated that we need to spend $4-6 trillion annually to reach 2050 Net Zero goals. That’s looking at total global investments in energy transition (building wind and solar, grids and battery storage); decarbonizing transport and industry; addressing climate security (sea-walls; drought-resistant crops) and nature-based solutions (large-scale reforestation and sustainable land management).
To put these numbers in perspective:
- Current global annual spend on these things is estimated at $1.3 trillion;
- Total global data center spend is estimated to hit $1 trillion by 2026. (The best estimates are that roughly 60% of the energy required for this is from fossil fuels; 40% from renewables and nuclear).
Expanding the Toolkit
Philanthropy has an expanding role to play, precisely because there are so many opportunities for impact. Non-grant tools allow philanthropy to:
Recycle dollars multiple times
Reduce risk for commercial investors entering new sectors
Bridge financing gaps in emerging solutions like storage or carbon removal
Build resilience through loan guarantees or concessional capital
Key Non-Grant Mechanisms
( 1 ) Recoverable grants
Funds are granted upfront but repaid if successful. Ideal for early-stage pilots, technical assistance, or small clean-tech deployments.
( 2 ) Low-interest or zero-interest loans
Affordable capital for projects that would recoup costs if successful.
( 3 ) Loan guarantees / credit enhancements
Foundations backstop risk, enabling banks to lend under better terms. By providing a loan guarantee, a philanthropist can unlock other capital (often 5x more) that otherwise might not happen. It can also be used as a first-loss reserve in combination with other philanthropists who are willing to offer interest-free loans. Ideal for community solar, energy-efficiency retrofits, and green housing.
( 4 ) Equity investments
Direct investment in climate tech companies or funds. Ideal for Israeli climate tech startups, water tech, and sustainable agriculture ventures.
( 5 ) Loan guarantees / credit enhancements
Combines philanthropic, public, and private capital. Philanthropy absorbs early-stage risk while attracting private investment – suitable for green infrastructure, grid modernization, and regional climate adaptation.
Risk, Return, and Impact
Philanthropists should consider risk tolerance, return expectations, impact goals (mitigation, adaptation, justice, tech deployment), time horizon, and capacity for managing investments.
Case Study: The Collective Sun Foundation
The Collective Sun Foundation helps institutions deploy solar by combining philanthropy with recoverable loans and technical support. This approach reduces risk, expands access to clean energy, and lowers operational costs, creating measurable climate impact.
By combining traditional grants with these innovative financial tools, philanthropists can leverage capital far beyond what grants alone could achieve.
Investing for good: impact investment and blended finance
For Jewish climate funders it aligns mission and means: supporting decarbonization not only with grants, but with some of the 95% of assets often sitting in endowments or investment portfolios.
The excellent Greenbook on Jewish Impact Investing, produced by Jewish Funders Network, describes this shift as a move from “grantmaking in one corner of the room” to “aligning the whole house.”
Defining Impact Investment: Financial Return with Positive Change
Impact investing sits at the intersection of:
- Competitive or concessionary financial returns
- Intentional social or environmental impact
- Rigorous measurement and reporting
This differs from ESG investing, which focuses on screening out harmful sectors. Impact investing actively seeks to create positive outcomes, such as:
- Reduced greenhouse gas emissions
- Improved air quality
- Renewable energy deployment
- Water conservation
- Climate-resilient agriculture
Morgan Stanley emphasizes that climate solutions represent “one of the largest investment opportunities of the 21st century,” while also being a moral imperative.
Mission-Related Investments (MRIs):
Aligning endowments with values
For Jewish foundations, MRIs allow endowment assets to support the same goals as their grants. MRIs aim for market-rate or near-market returns while advancing the mission.
Reasons why MRIs can be especially relevant for Jewish climate funders include:
- Aligning assets with climate goals can significantly increase overall impact.
- Next-gen Jewish philanthropists often seek values alignment in both giving and investing.
- MRIs signal seriousness: the foundation is “walking the talk.”
Case Studies of Successful Climate Impact Investments
Case Study: Kibbutz-based Agri-tech Venture Funds
Kinneret Innovation Centre in Israel, backed by Jewish philanthropists, invests in climate-resilient crops, precision irrigation, alternative proteins, and carbon-smart agriculture. Their investments both support Israel’s innovation ecosystem and address global food-system emissions. One fund partner remarked:
“We see no contradiction between strong returns and repairing the world – these reinforce each other.”
Case Study: Jewish communal green bonds (US)
A growing number of Jewish day schools and synagogues have issued green bonds or secured green loans for energy efficiency and rooftop solar, supported by philanthropic guarantees. These include Valley Beth Shalom synagogue in Encino, CA, Beth Tfiloh in Pikesville, MD, and Baltimore JCC, which are all among the 14 local Jewish institutions to have received green energy loans from The Associated: Jewish Federation of Baltimore. This lowers emissions, reduces energy bills, and creates a replicable model for communal climate resilience.
Start with a “carve-out”
Articulate mission and values. Begin by putting 5-10% of endowment assets in impact investments. As comfort grows, expand.
Choose the right vehicle
Founders can invest through:
Dedicated climate tech venture funds
Green or sustainability bonds
Community development financial institutions (CDFIs) supporting green projects
Funds with Israeli climate innovation exposure
Private equity focused on clean energy
Direct investments in startups
Measure and report impact
Credible metrics are important. Good reporting builds trust and attracts co-investors.
Align philanthropy and investment
Impact investing can complements grants.
A funder might:
Blended Finance: Bringing It All Together
Blended finance combines philanthropic, public, and private capital to unlock solutions at a scale that grants alone cannot. By using catalytic funding to reduce risk, blended finance enables much larger sums of private or government money to flow into projects.
The recent IFIE report, Blended Finance: Tools and Recommendations for Advancing Inclusive Growth in Israel, highlights Israel’s growing use of impact bonds, green bonds, and outcome-based contracts at meaningful scale. As Sir Ronald Cohen noted at the report’s launch,
“Blended finance makes it possible to bring capital that governments simply do not have.”
In 2023, Israel issued a successful, first-ever $2 billion sovereign green bond. It was priced at 95 basis points over the 10-year US Treasury benchmark – and was six-times oversubscribed.
Blended finance is a strategic opportunity: to leverage philanthropic funds to mobilize much larger resources, involve government early, and enable large-scale climate solutions. As JCT’s Galit Cohen observes, blended finance is “not right for every project, but where it fits, it can dramatically increase impact beyond what grants alone can achieve.” And limited public budgets for post-war rebuilding in the North and South make partnerships between philanthropy and government not just desirable, but necessary.
Resources for learning more
Impact investment funds in Israel include:
Advisors and useful information resources include:
The above are indicative examples, and not to be taken as advocating for or recommending a particular firm, fund or product. JCT does not have any financial interest in any of the funds listed above.
Carbon credits, carbon offsets and philanthropy
As Jewish organizations seek to align operations with values of stewardship, reducing carbon footprints is essential. However, there are emissions that cannot yet be reduced or eliminated. It is a Jewish value to try and make good on the damage that we have caused. What then should we do?
What do we mean by a carbon credit?
Think of a carbon credit as a certified receipt for a specific unit of work. When a project (like a wind farm or a reforestation effort) is “certified,” an independent auditor verifies that it has removed or prevented exactly one metric ton of CO₂ from entering the atmosphere. That ton is then turned into a digital “token” (the credit). So to offset 1000 tons of CO₂ a company – or a foundation – might buy 1000 credits to become carbon neutral.
The catch is that because these are legal instruments, a huge chunk of the money goes to frictional costs: lawyers, auditors, and brokers. The project itself often receives only a fraction of what you paid.
A Jewish lens: direct project investment
Jewish values emphasize that the important work is to recognize our impact, reduce it, and invest in trustworthy projects that mitigate carbon and align with our values. Doing this doubles our philanthropic impact; and reduces unnecessary friction costs.
Some examples of Impactful, Values-Aligned, carbon-reducing Projects
Jewish Solar Challenge (JSC)
Founded by social entrepreneur Mitchell Schwartz, Jewish Solar Challenge gives grants, provides technical guidance, and negotiates with vetted solar developers to help Jewish institutions in North America adopt rooftop solar. Projects reduce emissions, lower operational costs, and strengthen energy resilience.
Good Energy Initiative (GEI)
Based in Israel’s Elah Valley, GEI installs solar on schools and social welfare buildings in Israel and runs the Climate Forest for urban shading. They offer tangible local impact, supporting disadvantaged communities in Israel’s periphery. A growing number of Jewish non-profits and Israeli corporates are turning to them to maximize positive carbon impact and minimize costs.
Shamsuna
Shamsuna develops solar energy and storage for off-grid Bedouin schools, replacing diesel generators. Projects like this are a clear example of how a positive climate impact (reducing GHG emissions) is also directly improving the quality of life for some of the most under-resourced.
If you are looking for a formal offsetting project with international certification:
HomeBiogas
HomeBiogas is an Israeli company that creates products that transform organic waste from an environmental hazard to a resource that creates clean energy and improves sanitation. Roughly half their activities are in developing countries.
There is an obligation on us all to try to reduce our negative impact in the world. But to the extent that our daily activities – both personal and professional – will continue to do damage, there is an urgent moral obligation to strive to offset the damage that we do.
There are a growing number of opportunities to generate values-aligned, positive impact by investing in targeted actions that deliver measurable environmental and social benefits in communities you support.
Reducing your own negative climate impacts is essential. Alongside that, a simple and effective first step is to allocate a percentage of your annual philanthropic expenditures to carbon-reducing projects that also touch people’s lives for good.