Highlights

• UAE’s newly launched ALTÉRRA joins forces with Brookfield to enable the creation of a multi-billion catalytic fund to accelerate global energy transition
• ALTÉRRA commitment of up to US$1 billion from ALTÉRRA TRANSFORMATION will help deliver significant additional capital to emerging markets and developing economies
• Additional commitment of US$2 billion from ALTÉRRA ACCELERATION to the Brookfield Global Transition Fund II to invest in clean energy and transform businesses in carbon-intensive sectors

Today at COP28, Brookfield Asset Management (“Brookfield”) (NYSE: BAM, TSX: BAM) and ALTÉRRA, the world’s largest private markets climate vehicle launched at the World Climate Action Summit, announced the creation of a multi-billion dollar Catalytic Transition Fund (‘CTF’ or the ‘Fund’) with commitments from ALTÉRRA Transformation. ALTÉRRA also committed to investing US$2 billion from ALTÉRRA Acceleration into the second Brookfield Global Transition Fund (“BGTF II”), Brookfield’s flagship fund focused on the energy transition.

CTF will have a differentiated and focused mandate, raising and then deploying capital exclusively for emerging and developing markets, with a dedicated focus on supporting the four key pillars that underpin COP28’s Action Agenda, namely: Energy Transition, Industrial Decarbonization, Sustainable Living and Climate Technologies.

The Fund will be managed by Brookfield and will receive up to US$1 billion in catalytic capital from ALTÉRRA TRANSFORMATION, to enhance the risk-adjusted returns available to commercially-oriented investors. Brookfield is concurrently pursuing opportunities to add further catalytic capital from strategic partners.

CTF will focus on decarbonization initiatives, with an innovative structure that leverages ALTÉRRA's financial commitment to attract private sector investment at scale. Through this unique approach, the Fund will mobilize climate finance for markets that are critical to achieving Net-Zero, but which have to date been chronically underinvested. The Fund will focus its catalytic investments in South and Southeast Asia, Asia-Pacific, Central Asia, Eastern Europe, Latin America, and the Middle East.

Other investors including CDPQ, a global investment group based in Québec, Canada, and Temasek, a Singapore headquartered global investment firm, have also expressed interest in contributing commercial capital to the Fund, subject to their customary approval requirements. The potential participation of these institutions offers the opportunity to share expertise and market knowledge to benefit the Fund’s investments. In line with its typical approach of aligning interests with its investment partners, Brookfield will commit at least 10% of CTF’s capital.

ALTÉRRA represents a vital lever in further deepening the UAE’s longstanding commitment to climate action globally, through partnerships and collective action.

ALTÉRRA Acceleration is also today announcing a US$2 billion commitment to the second Brookfield Global Transition Fund, making it the single-largest third-party investor in the fund to date. BGTF II will follow the strategy of its predecessor fund, BGTF I, and invest ingrowing clean energy, scaling sustainable solutions and providing capital for transforming businesses in carbon-intensive sectors.

Taken together, the commitments from ALTÉRRA to CTF and BGTF II will support the deployment of over US$20 billion toward decarbonization initiatives.

Speaking about the partnership, His Excellency Majid Al Suwaidi, Director General of COP28 and Incoming Chief Executive Officer, ALTÉRRA, said:

“ALTÉRRA’s goal is to mobilize US$250 billion in capital by 2030 and stimulate a new climate economy in emerging and developing markets that achieve both climate and commercial outcomes. The partnership with Brookfield is a powerful demonstration of the UAE’s commitment to meaningful climate action and represents our wider ambition to fundamentally strengthen global climate finance.”

Mark Carney, Chair and Head of Transition Investing at Brookfield Asset Management, said:

“The UAE is demonstrating bold leadership in tackling the challenge of raising transition finance for emerging markets and developing economies. The Catalytic Transition Fund is an innovative private sector solution to this imperative which combines institutional capital and Brookfield’s decades of experience in renewable power and transition investing. The UAE’s substantial commitments to our transition investing platform will greatly accelerate progress towards Brookfield’s Net Zero emissions target while supporting vital clean growth initiatives across the globe.”

Brookfield will seek to bring on board other institutional partners in 2024.