Brookfield Raises $10 Billion for Second Net-Zero Fund – GWC Mag

Brookfield Asset Management has raised $10 billion in the first closing of its second global transition fund, which is focused on helping reach international net-zero goals.

The fund plans to invest in the expansion of clean energy, accelerate sustainable solutions and technologies, and help companies within carbon-intensive sectors transition to more sustainable business practices. Its seed portfolio reportedly includes an onshore renewables developer in the United Kingdom and a solar partnership in India.

Brookfield also expresses plans to achieve a larger fundraiser than its previous transition fund. The Canadian company’s first fund closed at $15 billion in June of 2022, becoming the largest fund of its kind in the world. Investments from that first financing round are currently going toward renewable power, business transformation, carbon capture and storage, renewable natural gas, and nuclear services.

“We have demonstrated beyond doubt the breadth and scale of attractive investment opportunities in the transition to a net zero economy,” said Mark Carney, chair and head of transition investing for Brookfield. “By going where the emissions are, the Brookfield Global Transition Fund strategy is aiming to deliver strong risk-adjusted financial returns for investors and make meaningful environmental impacts for people and the planet.”

Funding Round Follows Joint Acquisition of Nuclear Giant Westinghouse

After securing funding from the first transition fund, Brookfield has made significant investments in nuclear energy and emphasizes the need to expand nuclear capacity to reach net-zero goals.

In November 2023, Brookfield and Cameco jointly acquired global nuclear giant, Westinghouse, citing a lasting demand outlook for nuclear power. Westinghouse is the core service provider for over 50% of the world’s operating nuclear reactors. The company has also developed small modular reactors and other next-generation advanced reactors, which are expected to drive future nuclear energy development.

Despite mixed opinions on nuclear power’s role in the clean energy transition, the industry has been identified as a major contributor to meeting global electricity demand through clean energy sources.

Nuclear is currently the second largest global source of clean energy after hydropower, and the International Energy Agency expects nuclear energy generation to reach an all-time global high by early 2025 to meet this rising demand. The U.K. also released plans earlier this year to increase nuclear generation by up to four times its current amounts, making the energy source a key piece of its overall decarbonization strategy.