Catalytic Transition Fund aims for US$5bn, with major investors backing Brookfield's climate strategy
Brookfield Asset Management has secured an initial US$2.4bn for its Catalytic Transition Fund (CTF), which is focused on clean energy and transition assets in emerging markets, as reported by BNN Bloomberg.
This amount brings the fund to about half of its US$5bn target.
The CTF has attracted investments from prominent institutions, including Singapore’s sovereign wealth fund GIC Pte, Prudential, Temasek Holdings, and Canada’s second-largest public pension manager, Caisse de Depot et Placement du Quebec, according to a statement shared with Bloomberg News.
Mark Carney, chair of Brookfield Asset Management and head of its transition investing group, emphasized the importance of this initiative, stating, “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.”
Carney, who also chairs Bloomberg Inc., stressed the alignment of the fund’s goals with global climate priorities.
Brookfield pointed out that investments in emerging markets need to increase sixfold from current levels to meet the US$1.6tn required annually by the early 2030s to achieve global net-zero targets. The fund expects to announce its first investments later in 2024.
Introduced at the COP28 climate change conference, the CTF has already received up to US$1bn in capital from UAE investment firm Alterra. Brookfield has committed to contributing 10 percent of the fund's overall target.
In another development, Carney recently took on an advisory role in economic policy with Canadian Prime Minister Justin Trudeau’s Liberal Party.
This move has sparked criticism from Conservative Party Leader Pierre Poilievre, who accused Carney of attempting to bypass conflict-of-interest disclosures by working for a political party instead of the government.
