The fund is the second iteration of the Brookfield Global Transition fund, which closed at $15bn and aims to accelerate the global transition to a net zero economy through its investments.
Former Bank of England governor Carney, who is the chair of the $850bn asset manager and also serves as its head of transition investing, will be co-head of the fund alongside Connor Teskey, CEO of Brookfield’s renewable power and transition business.
Investments will reflect the strategy of the first fund, focusing on the expansion of clean energy, the advancement of sustainable solutions and the transformation of companies operating in carbon-intensive sectors to more sustainable business models.
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The fund’s seed portfolio includes a UK onshore renewables developer and a solar development partnership in India.
The firm is targeting a larger fundraise for this fund than its predecessor, with fundraising expected to conclude in the third quarter of 2024.
BGTF I was the largest fund of its kind in the world, according to the firm. The capital is now in a range of investments across renewable power, business transformation, carbon capture and storage, renewable natural gas and nuclear services opportunities.
Teskey said: “Corporate demand for decarbonisation technologies is now the primary driver of transition investment, delivering significant economic value as well as meaningful environmental benefits.
“New trends are also emerging, such as supplying reliable, clean power to the surging data and technology sector, building entirely new industrial supply chains and scaling technologies required for industrial decarbonisation.”
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Carney added: “We have demonstrated beyond doubt the breadth and scale of attractive investment opportunities in the transition to a net zero economy.
“By going where the emissions are, the Brookfield Global Transition fund strategy is aiming to deliver strong risk-adjusted financial returns for investors and make meaningful environmental impacts for people and the planet.”
Carney, who served at the Bank of England from 2013 to 2020, has previously criticised Prime Minister Rishi Sunak’s environmental policies and campaigned for more money being put into green investments.
He recently endorsed Labour shadow chancellor Rachel Reeves as the next Chancellor of the Exchequer.
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