Macquarie Asset Management has closed a $3 billion fund to speed up the global energy transition. The fund, called Macquarie Green Energy Transition Solutions (MGETS), exceeded its original target after strong demand from investors. The money will support projects that cut greenhouse gas emissions and build a cleaner energy system.
More than 65% of the fund is already committed. Early investments target renewable energy storage, sustainable fuels, carbon capture, and electric transport systems. By backing both proven and emerging solutions, Macquarie shows that climate-focused investing is now central to its strategy.
Where the Billions Are Going
MGETS is designed to finance infrastructure and technology that reduces carbon. This includes battery energy storage, distributed renewable power, clean transportation, and sustainable fuels. It also covers carbon capture, recycling, and circular economy projects.
So far, the fund has backed 12 projects. These include Eku Energy, a UK-based battery storage platform; SkyNRG, a Dutch producer of sustainable aviation fuel; and Verkor, a French maker of EV batteries. These examples show the fund’s focus on areas where emissions are hardest to cut.
The fund also targets low-carbon technologies that are still developing, such as green hydrogen, carbon capture, and advanced batteries. These solutions are not yet scaled up, but early capital is needed to drive progress and lower costs.
Investing in these technologies carries risks. Costs are high, and technical barriers remain. But the long-term growth potential is strong. As countries and companies set net-zero targets, demand for these technologies will increase. Macquarie is positioning itself as a leader by supporting both current infrastructure and future innovations.
Key Features of the Fund
Here are some of the fund’s highlights:
- Fund size: $3 billion
- Focus: Energy transition projects
- Sectors: Renewable power, grid upgrades, clean fuels, storage, and clean transport
- Scope: Developed and emerging markets worldwide
- Structure: Mix of equity and debt financing
- Goal: Cut emissions and support net-zero pathways
- Investors: Global institutions such as pension funds and sovereign wealth funds
This flexible structure allows the fund to support both large-scale projects and smaller ventures that need growth funding.
The Investor Surge: Why Demand Exceeded Expectations
The strong demand for MGETS highlights how fast climate finance is growing. Pension funds, insurers, and sovereign wealth funds see the energy transition as both a duty and an opportunity. They can back low-carbon infrastructure while earning stable returns.
The fund also shows how investment is expanding beyond solar and wind. Macquarie is putting money into enablers of the transition, such as grid flexibility, carbon storage, and clean fuels.
The International Energy Agency (IEA) forecasts global energy investment will hit a record $3.3 trillion in 2025, led by clean energy technologies. Of this, $2.2 trillion will go to renewables, nuclear, and energy storage — about double the amount slated for fossil fuels. Solar power could attract $450 billion, while battery storage investment rises to around $66 billion.
According to the IEA, global clean energy investment could reach $4.5 trillion annually by 2030 if countries meet their climate goals. Funds like MGETS are meant to help close this gap.
- SEE MORE: Clean Energy Beats Fossil Fuel in Historic $3.3T Global Energy Investment in 2025, IEA Report
Scaling Climate Impact: From Europe to the World
The launch of MGETS shows the scale of funding needed to meet climate targets. Private capital, alongside public funding, will be critical.
By committing $3 billion, Macquarie sets an example for other asset managers. The fund is also expected to attract co-investments and partnerships, expanding its impact far beyond its initial size.
Institutional Capital as a Climate Catalyst
Large investors are under pressure to align their portfolios with climate goals. They are looking for opportunities that combine stable returns with measurable impact. MGETS offers one way to do this.
Macquarie is not alone. BlackRock and Brookfield have also raised multi-billion-dollar energy transition funds. Together, these efforts show how finance is becoming a key driver of climate action.
Separately, a venture capital alliance overseeing $60 billion in assets has launched a $300 million fund to support climate-tech startups. Called the “All Aboard Coalition,” the fund aims to help firms scale from pilot to commercial stage.
It aims to close what’s known as the “valley of death” in clean technology. Backers include Breakthrough Energy, Khosla Ventures, and DCVC. This move comes amid a multi-year drop in climate-tech investments and seeks to restore funding momentum in the sector.
Opportunities vs. Risks: Navigating the Transition
The opportunities are clear. Demand for clean power, EVs, and smart grids will rise over the next decade. Technologies that reduce emissions will become more profitable as rules tighten and companies aim for net zero.
But there are risks. Some technologies are costly or unproven. Policy changes, such as shifts in subsidies or carbon pricing, can affect returns. Large projects also face hurdles with permits, supply chains, or local opposition. Climate risks such as extreme heat, flooding, or storms can also impact assets directly. Macquarie will need to manage these challenges carefully.
Early Momentum and Global Reach
Despite these risks, the fund has momentum. With over 65% already invested, Macquarie is moving fast. Current projects are based in the UK, France, and the Netherlands, but the fund plans to operate globally.
The name “Green Energy Transition Solutions” reflects its broad focus. It is not only about generating clean power but also about enabling systems that cut emissions across industries.
Looking Ahead: Funding the $4.5 Trillion Net-Zero Gap
The energy transition requires trillions of dollars in funding by 2050. This growth will continue, with more money flowing to energy storage, carbon capture, and clean transport.
Corporate net-zero pledges also create demand. Over 6,000 companies worldwide have set science-based climate targets. In 2023, companies with SBTi-approved climate targets made up 39% of global market value, rising to 41% in 2024. These businesses also grew faster than the wider economy, with market value increasing 16%, compared to 11% growth in global GDP.
This adds pressure on supply chains and energy providers to cut emissions. Financial players like Macquarie are stepping in to provide both funding and expertise.
Macquarie’s $3 billion fund is part of a much larger movement. To keep global warming to 1.5°C, clean energy investment must rise sharply over the next decade. Funds like MGETS can help connect technology developers, infrastructure operators, and investors.
The success of the fund will depend on two things: financial returns and real carbon reductions. If Macquarie delivers on both, it could attract more capital and inspire others to follow. That would speed up the world’s shift to a low-carbon economy.
