Brookfield Asset Management announced the initial close of its Climate Catalyst Fund, raising $2.4 billion, marking a significant step toward the fund’s target of securing $5 billion. The fund is designed to finance clean energy projects and climate transition solutions in emerging markets.
Brookfield has committed to contributing 10% of the total targeted capital for the fund, with the participation of several partners and investors. This announcement follows the fund’s launch during the COP28 conference, with the “Altera” Fund, one of the largest private climate finance tools globally, being the first to support the initiative with an investment of up to $1 billion.
Broad Investment Support for the Climate Catalyst Fund
The Altera Fund aims to mobilize large-scale investments to support the new climate economy by leveraging innovative strategies to attract capital from investors in emerging markets. Altera’s commitment to capped returns is one of the key factors that enhances the risk-adjusted returns for other investors in the fund.
Global Partners Contributing to Climate Transition
In addition to Brookfield, four new investment partners have joined the Climate Catalyst Fund: Caisse de dépôt et placement du Québec (CDPQ), GIC, Prudential, and Temasek. These leading global investment institutions are key players in climate investment worldwide and will contribute to allocating the fund’s investments to targeted markets.
Focus on Clean Energy Markets
The Climate Catalyst Fund focuses on investing in clean energy assets and climate transition solutions in emerging markets such as Latin America, South and Southeast Asia, the Middle East, and Eastern Europe. These investments are expected to significantly scale up clean energy investment in these regions, aligning with global goals for achieving climate neutrality.
Future Outlook
The Climate Catalyst Fund is expected to announce its initial investments in 2024, with the final close projected by early 2025. Brookfield is actively expanding its efforts to raise additional capital through its wide network of institutional investors, which will further enhance the fund’s role in driving positive change towards a sustainable energy future.
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