Caisse is among the backers of Brookfield’s Emerging Markets Clean Energy Fund
A fundraising campaign has secured an initial $2.4 billion in investment, approximately halfway towards reaching its overall target of $4.8 billion.
Brookfield’s Catalytic Transition Fund Seeks to Invest in Clean Energy and Transition Assets
In a significant move towards sustainable investing, Brookfield Asset Management Ltd. has raised an initial US$2.4 billion for its Catalytic Transition Fund (CTF), which is dedicated to investing in clean energy and transition assets in emerging markets.
Key Highlights of the Fund
- The CTF aims to mobilize private capital to support the transition to a low-carbon economy in emerging markets.
- The fund has already secured commitments from some of the world’s most sophisticated investors, including Singapore sovereign wealth fund GIC Pte., Prudential, Temasek Holdings Pte. Ltd., and Caisse de Depot et Placement du Quebec (CDPQ).
- Brookfield has committed to provide 10% of the target amount, with the remaining funds coming from external investors.
Market Potential for Clean Energy Investments
The market potential for clean energy investments is substantial, with estimates suggesting that investors need to increase their commitments sixfold from current levels to reach the US$1.6 trillion needed annually by the early 2030s to meet global net zero targets.
Initial Investments and Future Plans
The fund expects to announce its initial investments later in 2024, marking a significant milestone in its journey towards achieving its goals. With a target size of US$5 billion, the CTF is poised to play a vital role in driving sustainable growth in emerging markets.
Support from Major Investors
Quotes from Key Stakeholders
- "The support from the world’s most sophisticated investors for the CTF strategy underscores the unique combination of the major commercial opportunity and the climate imperative," said Mark Carney, Chair of Brookfield Asset Management and head of its transition investing group.
- "We are excited to be part of this innovative initiative, which aligns with our investment philosophy and commitment to supporting the transition to a low-carbon economy."
Criticisms and Controversies
In related news, Mark Carney has recently accepted a role as an adviser on economic policy to Prime Minister Justin Trudeau’s Liberal Party. This move has been criticized by Conservative Party Leader Pierre Poilievre, who alleges that Carney is trying to dodge conflict-of-interest disclosures by taking on the work for a political party rather than for the government itself.
Conclusion
The success of the CTF is a testament to the growing demand for sustainable investing and the need for private capital to support the transition to a low-carbon economy. As investors continue to seek out opportunities in emerging markets, Brookfield’s Catalytic Transition Fund is well-positioned to capitalize on this trend.
Investors Backing the Catalytic Transition Fund
- Singapore sovereign wealth fund GIC Pte.
- Prudential
- Temasek Holdings Pte. Ltd.
- Caisse de Depot et Placement du Quebec (CDPQ)
