World Bank Group member the International Finance Corporation (IFC) announced that it will invest $100 million in Brookfield Asset Management’s Catalytic Transition Fund (CTF), aimed at driving clean energy investments in underserved emerging economies.
Initially unveiled in December 2023 at the COP28 climate conference in Dubai, with a $1 billion anchor commitment from UAE-backed climate investment platform ALTÉRRA, CTF aims to deploy capital into clean energy and transition assets in emerging markets in South and Central America, South and Southeast Asia, the Middle East, and Eastern Europe. The fund invests in three key themes, including business transformation, helping businesses to decarbonize their operations and transition to more sustainable models; energy, helping to scale power technologies, including distributed energy systems and battery storage, and; sustainable solutions, targeting areas such as such as energy efficiency, advanced waste management, and next‑generation aviation fuels.
The fund was officially launched in June 2024, with a $5 billion target size, and announced in September 2024 that it had raised $2.4 billion in commitments.
Connor Teskey, President of Brookfield Asset Management, said:
“IFC’s investment in the Fund accelerates our ability to deploy capital at scale into investments that support economic growth, energy security and decarbonization in emerging markets. Combined with Brookfield’s decades of experience in renewable power and transition investing, IFC’s investment and global knowledge will help deliver meaningful impact for emerging markets, investors and the energy transition at large.”
According to the IFC, the new investment is being made in response to client demand for reliable energy access and sustainable investments across emerging markets, noting attributes of the fund including helping to accelerate investment in energy infrastructure and sustainable solutions, unlocking economic growth, building more resilient communities, and creating jobs across Asia, Latin America, Eastern Europe, and the Middle East.
In addition to the $100 million commitment, the IFC said that its investment comes with an additional envelope of up to $75 million, which will allow it to co-invest alongside the fund in future deals.
IFC Vice President of Industries Mohamed Gouled said:
“The fund can demonstrate to global commercial investors that supporting the expansion of energy and sustainable solutions in emerging markets can generate financial returns with measurable impact.”
