Global alternative asset investor Brookfield Asset Management announced today the initial close of its Brookfield Global Transition Fund, its inaugural net zero-focused impact fund, with commitments reaching $7 billion.

Col-led by Brookfield Vice Chair and Head of Transition Investing Mark Carney, and Brookfield Renewables CEO Connor Teskey, the fund aims to deliver strong risk-adjusted returns, while targeting investments that accelerate the global transition to a net-zero carbon economy. Key areas of focus include greenhouse gas emissions and energy consumption reduction, low carbon energy capacity growth, and sustainable solutions.

Carney said:

“Brookfield is committed to achieving net-zero by 2050 or sooner, and to accelerating the global net-zero transition. As the world increasingly focuses on sustainability, the required capital and investable opportunities are expanding faster than originally expected, creating an even greater opportunity for large-scale investments that address climate change and generate attractive returns.”

According to Brookfield, the initial close establishes the fund as the largest focused on the global transition to a net-zero economy. Brookfield announced that it has set a hard cap of US$12.5 billion.

Founding investment partners include Ontario Teachers’ Pension Plan Board and Temasek, each committing significant capital, and strategically investing alongside the fund.

Ziad Hindo, Chief Investment Officer of Ontario Teachers’ said:

“By making a significant commitment to the Brookfield Global Transition Fund, we are investing our capital in a way that will benefit the environment and society while also earning attractive risk-adjusted returns to pay pensions. This investment is an example of how we can use our scale, engagement and influence to help accelerate the transition to a low-carbon economy and create a sustainable climate future.”