Caisse de dépôt et placement du Québec (CDPQ), GIC, Prudential and Temasek are among new investors joining Brookfield’s Catalytic Transition Fund (CTF), which has already secured nearly half of its fundraising target of up to $5bn (€4.5bn) to invest in clean energy and transition assets in emerging markets.
As previously reported, Altérra, a climate-focused fund created by the United Arab Emirates at the COP28 Climate Summit, made a $1bn capital commitment to CTF.
Brookfield, which will also contribute 10% of the fund’s target capital, said that it has raised an initial $2.4bn for CTF, adding that the fund is expected to announce its first investments later this year and is aiming for a first close by early 2025.
CTF targets investments in clean energy and transitional assets within emerging markets located in South and Central America, South and Southeast Asia, the Middle East and Eastern Europe.
Majid Al-Suwaidi, CEO of Altérra, said: “CTF demonstrates Altérra’s catalytic capital as a powerful multiplier of climate finance to the Global South. This early momentum around CTF shows strong global demand not just for climate strategies, but for opportunities to invest in climate solutions in emerging markets.
“Altérra looks forward to working with CDPQ, GIC, Prudential and Temasek and other partners who share our ambitions to redefine how the world invests in climate solutions and go beyond business-as-usual to deliver positive impact for both people and planet.”
Mark Carney, chair and head of transition investing at Brookfield Asset Management, said: “These anchor commitments from CDPQ, GIC, Prudential and Temasek demonstrate significant momentum for the Catalytic Transition Fund.
“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.”
Marc-André Blanchard, EVP and head of CDPQ global and global head of sustainability, said: “Globally, around $6.5trn will be needed yearly for the energy transition over the next 15 years. It’s a staggering figure, and various partnerships and investments are necessary to accelerate the path forward.
“For CDPQ, the energy transition is key to creating lasting value. By investing in Brookfield’s Catalytic Transition Fund, we are supporting innovative approaches to mobilise capital for climate solutions in emerging markets, where investments are critical to tackle the global environmental challenge.”
Don Guo, CIO at insurer Prudential, said: “We believe there is an opportunity to drive scalable positive change in emerging markets through investing in the climate transition. Prudential’s investment in Brookfield’s Catalytic Transition Fund underscores our belief that responsible investment is not only an environmental imperative but also a significant opportunity for growth in emerging markets.
“By supporting a just and inclusive transition, we enable the benefits of sustainable development to be shared widely, contributing to social equity and long-term prosperity.”
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