Norges Bank Investment Management (NBIM), the investment manager for Norway’s $1.8 trillion sovereign wealth fund, has announced a significant commitment to Brookfield Asset Management’s latest energy transition initiative. NBIM will contribute $1.5 billion to the Brookfield Global Transition Fund II (BGTF II), which focuses on expanding clean energy, transforming carbon-intensive sectors, and accelerating sustainable solutions across various regions, including North America, South America, Europe, and Asia Pacific.
Launched in 2023, BGTF II follows the success of its predecessor, which closed at $15 billion. By early 2024, Brookfield had raised $10 billion at the fund’s first close, with expectations to surpass the size of the initial fund, potentially making it the largest private fund dedicated to the net-zero economy.
Connor Teskey, President of Brookfield Asset Management and CEO of Brookfield Renewable Partners, expressed enthusiasm for the partnership, stating that NBIM’s commitment highlights the shared vision for investment opportunities in the energy transition.
This agreement is part of NBIM’s ongoing strategy to enhance its renewable infrastructure portfolio, following a 2019 mandate from Norway’s Ministry of Finance allowing investments in unlisted renewable energy infrastructure. NBIM has since made significant investments, including eight direct investments in European solar, wind, and electricity transmission systems, and a €900 million indirect investment through Copenhagen Infrastructure Partners.
Harald von Heyden, Global Head of Energy and Infrastructure at NBIM, noted that the agreement with Brookfield marks their first investment in an energy transition fund, facilitating investments in projects that develop renewable energy infrastructure and support the transition to low-carbon solutions.
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