- Brookfield Asset Management has stated that it is looking to raise $5 billion for a fund backed by the United Arab Emirates (UAE) that aims to scale up climate finance.
- The fund, known as the Catalytic Transition Fund (CTF), was announced at the COP28 climate talks in Dubai last December.
Canadian company, Brookfield Asset Management, has stated that it is looking to raise $5 billion for a fund backed by the United Arab Emirates (UAE) that aims to scale up climate finance in emerging markets.
The fund known as the Catalytic Transition Fund (CTF), was announced at the COP28 climate talks in Dubai last December, but this is the first time Brookfield has confirmed its target size.
Anchored by a $1 billion commitment from the $30 billion UAE-based ALTÉRRA fund, Brookfield said in a statement that the first close of the CTF is at the end of 2024.
The first close of a fund refers to when it has secured enough commitments to start making investments.
Excluding China, developing economies get less than 15 per cent of the world’s clean energy dollars. This is despite being responsible for nearly a third of global emissions, and as a result, investments there can often have a bigger impact, Brookfield said.
Returns to the ALTÉRRA fund will be capped at an unspecified amount, allowing other investors to secure better risk-adjusted returns. Brookfield, which manages $925 billion in assets, will provide at least 10 per cent of the fund’s capital.
“The Catalytic Transition Fund is a private market solution to the global challenge of delivering transition investment to emerging markets,” said Mark Carney, Chair and Head of Transition Investing at Brookfield Asset Management.
ALTÉRRA Chief Executive Majid Al-Suwaidi said the world needed to pick up the pace “significantly” on addressing climate change, and its investment in the CTF would “supercharge investment in emerging markets”.