AIMCo, which has C$158 billion in assets, said the fund will be dedicated to investing in the global energy transition and decarbonization sectors.
The Ontario Teachers' Pension Plan announced in 2022 plans to invest about C$5 billion in so-called 'high carbon transition assets'.
Canada's largest pension fund the Canada Pension Plan (CPP) Investments does not have a specific fund, but allocates C$79 billion to green transition assets that it is looking to grow to C$130 billion.
"Our climate approach provides important transparency around how we consider climate in our investments and how we will, over the long run, help reduce emissions," Marlene Puffer, chief investment officer at AIMCo, said in the release.
Possible investments include in carbon capture, industrial decarbonization, renewable fuels and electrification, storage and energy efficiency.
Last week AIMCo, located in Canada's main oil and gas-producing province, said it would be interested in buying a stake in Canada's Trans Mountain pipeline if it became available.
