Brookfield Asset Management announced today that it has successfully raised $2.4 billion for its Catalytic Transition Fund (CTF), a new initiative designed to accelerate clean energy investments in underrepresented emerging markets. The fund’s launch, which took place just three months ago in June 2024, marks a significant step in directing capital toward regions often overlooked in the global transition to sustainable energy.
The CTF was first introduced at the COP28 climate summit in Dubai in December 2023, with a $1 billion anchor commitment from ALTÉRRA, a climate investment platform backed by the UAE. The fund is focused on deploying investments in clean energy and transition-related projects across emerging economies in South and Central America, South and Southeast Asia, the Middle East, and Eastern Europe.
Brookfield’s climate transition initiative has also attracted a roster of high-profile institutional investors, including CDPQ, GIC, Prudential, and Temasek. With a target of raising $5 billion, Brookfield itself has committed to contributing 10% of the total, demonstrating alignment with its partners and investors. ALTÉRRA’s contribution, structured to receive a capped return, is aimed at enhancing risk-adjusted returns for other investors involved in the fund.
Brookfield plans to hold a formal first close of the CTF by early 2025, with the initial round of investments expected to commence later this year.
Mark Carney, Chair and Head of Transition Investing at Brookfield, emphasized the strategic importance of the fund and the investor commitments it has secured, stating:
“These anchor commitments from CDPQ, GIC, Prudential, and Temasek reflect the growing momentum behind the Catalytic Transition Fund. The strong backing from some of the world’s most sophisticated investors highlights the alignment between commercial opportunity and the urgent climate imperative. We look forward to partnering with other like-minded investors to drive forward the transition in these critical and underserved markets.”
Brookfield’s Catalytic Transition Fund represents one of the latest efforts to address the financing gap for clean energy projects in emerging economies, a key focus area in global efforts to combat climate change.