Brookfield Asset Management has raised 20 billion U.S. dollars for its second global energy transition fund. This makes it the largest private fund ever created for clean energy and decarbonization projects.
The fund, called the Brookfield Global Transition Fund II (BGTF II), will invest in renewable energy, carbon capture, nuclear, and other low-carbon solutions worldwide. Brookfield said the fund exceeded its target.
The company will commit about 25 percent of the capital from its own balance sheet, showing strong confidence in the opportunity. More than 200 global investors joined the fund, including major pension funds, sovereign wealth funds, and insurers.
Brookfield also secured 3.5 billion dollars in co-investments from partners that will join in large projects. The firm has already deployed $5 billion from the fund into new projects. This shows a quick start in building clean energy infrastructure on a large scale.
From BGTF I to BGTF II: Bigger, Broader, and More Ambitious
Brookfield’s first transition fund, BGTF I, launched in 2021 with $15 billion. It focused on renewable power, carbon capture, battery storage, sustainable aviation fuel, and nuclear services through Westinghouse.
That first fund achieved strong performance. Brookfield says BGTF II now targets a net internal rate of return (IRR) of about 12%, slightly higher than the goal of the first fund.
BGTF II builds on that experience and scale. It seeks to change carbon-heavy industries, grow clean energy, and back technologies that reduce emissions. The company manages over $850 billion in assets. This gives it the reach and skills to handle a large platform.
Connor Teskey, President of Brookfield Asset Management, remarked:
“Energy demand is growing fast, driven by the growth of artificial intelligence as well as electrification in industry and transportation. Against this backdrop we need an ‘any and all’ approach to energy investment that will continue to favor low carbon resources. Our strategy will succeed by investing in the technologies that will deliver clean, abundant, and low-cost energy and transition solutions that underpin the global economy.”
Where the Money Will Go
BGTF II focuses on three major investment areas:
- Clean energy expansions, such as wind and solar projects.
- Transition technologies include battery storage, grid modernization, carbon capture, and next-generation nuclear.
- Sustainable solutions that cut emissions in industries and transportation.
Early investments already include Neoen in France, Geronimo Power in the United States, and Evren in India. These projects plan to create more than 10 gigawatts of clean energy. They will use wind, solar, and battery storage.
Brookfield plans to deploy capital across North America, South America, Europe, and the Asia-Pacific region. The company is expanding into emerging markets, such as India and Brazil, where energy demand is increasing rapidly. Clean power investments can also make a big social impact.
Brookfield now oversees over 200 gigawatts of renewable power. This capacity, built or in development, can supply electricity to hundreds of millions of homes worldwide.
Record Scale in a Fast-Changing Market
The 20-billion-dollar fund comes at a time of record investment in clean energy. The International Energy Agency reports that global renewable power investment hit 680 billion dollars in 2024. Total energy transition funding also exceeded 1.7 trillion dollars.
Private infrastructure investors can raise over 2 trillion dollars by 2030 for clean energy projects. Brookfield’s new fund shows how private capital is stepping in to meet that demand.
- SEE MORE: Clean Energy Beats Fossil Fuel in Historic $3.3T Global Energy Investment in 2025, IEA Report
The size of BGTF II sets it apart from rivals. It surpasses other large climate funds managed by firms like BlackRock, KKR, TPG, and Macquarie. Many analysts see it as proof that energy transition investments are moving from a niche market to the financial mainstream.
Some of the world’s biggest investors have backed the fund. Sovereign wealth funds from the Middle East, European pension plans, and large insurers all made multi-billion-dollar commitments. Strong demand allowed Brookfield to close the fund early and above target.
Beyond Returns: ESG with Real-World Results
Brookfield’s first transition fund, BGTF I, helped avoid over 100 million tonnes of CO₂ emissions. This was achieved through the projects it financed. The new fund, BGTF II, is expected to double that impact over the next decade.
The company says its clean energy projects create tens of thousands of skilled jobs. These jobs are in construction, operations, and maintenance worldwide. In emerging markets such as India and Brazil, new renewable projects are creating steady jobs. They are also boosting local economies.
BGTF II boosts Brookfield’s role as a top investor in sustainable infrastructure from an ESG perspective.
- Environmental: The fund supports renewable generation, energy storage, and industrial decarbonization — key areas for cutting emissions.
- Social: The projects promote local job creation and responsible sourcing.
- Governance: Brookfield promises clear ESG reporting. They provide third-party checks on emissions cuts and metrics for investors.
These steps align with global net-zero goals and contribute to keeping global temperature rise below 1.5 degrees Celsius.
Why It Matters: The Private Capital Shift to Clean Power
Brookfield’s new fund is a signal of how the global energy system is changing. The rise of artificial intelligence, data centers, and electric vehicles is driving rapid growth in electricity demand. At the same time, governments are tightening climate policies and pushing for more clean power capacity.
Funds like BGTF II help fill the gap between public targets and real-world project financing. Private capital can move faster than government budgets and can help deliver clean energy solutions at scale.
The fund also shows that investors see climate projects as long-term infrastructure instead of short-term experiments. Stable cash flows from renewables and storage assets attract institutions. They seek both returns and a positive impact.
Building the Next Generation of Clean Energy
Brookfield plans to deploy BGTF II’s capital over the next 5 to 7 years. Early focus areas include North America, Europe, India, and Latin America — regions with clear climate policies and rising energy demand.
If executed well, the fund could help close the global investment gap in clean power and low-carbon infrastructure. It will show that sustainability and profitability can go hand in hand, and it works best with strong management and scale.
Brookfield’s 20-billion-dollar Global Transition Fund raise marks a milestone in global finance. It shows how private capital can drive the shift toward low-carbon growth — helping to build the next generation of clean energy systems, one project at a time.
