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Brookfield Asset Management aims to raise upwards of $25 billion for two new private funds that would invest in clean energy, The Wall Street Journal reported on Monday.
Brookfield Asset Management – which has recently raised a record $28-billion infrastructure fund, the world’s largest closed-ended private infrastructure fund, and the largest fund ever raised by Brookfield – expects to raise billions of U.S. dollars in a clean energy-focused fund in the emerging markets.
“The demand, particularly from corporates for green power, is simply overwhelming,” Connor Teskey, the head of Brookfield’s renewable power and transition business, told the Journal in an interview.
Brookfield’s energy transition-focused funds are co-led by Teskey and Mark Carney, the former governor of the UK and Canada’s central banks.
As of early December, Brookfield Asset Management had more than $850 billion of assets under management across renewable power and transition, infrastructure, private equity, real estate, and credit.
Brookfield keeps raising funds to invest in clean energy as demand is rising despite recent setbacks in the renewable energy markets amid supply chain woes, higher interest rates, quality issues, and cheap Chinese products.
Global investment in the energy transition jumped by 17% to reach a new record of $1.77 trillion in 2023, a new report by research provider BloombergNEF (BNEF) showed last week.
Electrified transport is now the largest sector for spending in the energy transition, growing by 36% to $634 billion last year, according to the Energy Transition Investment Trends 2024 report by BNEF.
China remained the single largest country investor in low-carbon energy, with $676 billion invested in 2023 – equivalent to 38% of the global total. But China’s lead has been reduced, as taken together, the European Union, the U.S., and the UK outpaced China with $718 billion of investment – a feat they hadn’t managed to achieve in 2022, BNEF said.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.