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(Bloomberg) – US President Donald Trump, perhaps simply called the climate change “the greatest work”, but there are more and more evidence that investments in the transition to the energy transition receive a revival.
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On Tuesday, Brookfield Asset Management said she had attracted $ 20 billion for the world's largest private fund dedicated to the transition of pure energy. This coincided with the announcement from the Resolution Investors LLP that he launched a global climatic capital fund aimed at $ 1 billion for several years.
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The interest of investors in green shares increased this year, despite the efforts of the Trump administration on Oxim politicians, which support the transition of pure energy. Since the end of December, the S&P Global Clean Energy transition index has grown about 40% compared with about 15% increase in the S&P 500 index.
There are also signs of growing optimism around green strategies in private markets. Last year, transactions of private joint-stock capital, intended for climatic decisions, reached $ 73 billion, and BCG recently describes the current investment market as a “post-bullet” period.
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In the statement of Connor Teski, President of Brookfield Asset Management, “Energy Demand“ grows rapidly, due to the growth of artificial intelligence, as well as electrification in industry and transport, ”said Konnor Teski, President of Brookfield Asset Management. “Against this background, we need the“ Anyone and All ”approach to energy investments that will continue to give preference to resources with a low carbon content.”
Teski, who is also the executive director of the Brookfield division of renewable power and the transition, said that the Fund – Brookfield Global Transition Fund II – received contributions from institutional investors around the world. Alterra, a fund of funds launched by the United Arab Emirates at the COP28 summit in Dubai, made $ 2 billion. According to said that Norge Bank Investment Management, the world's largest sovereign welfare fund, promised $ 1.5 billion.
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The Brookfield Foundation, which was launched by Mark Carney before he became the Prime Minister of Canada, was launched in 2023 from the first closure in early 2024 after reaching 10 billion dollars. Currently, he successfully deployed about a quarter of his capital, including for absorption of Neoen SA, producer, producer of renewable electricity, and Even, a joint venture to accelerate wind and solar projects in India, Brookfield said.
The resolution managed by former leaders from the former vice president-vice-president of Al Gore by investment said that its decision to launch a climate fund in the current market was based on an assessment that investors now have the best idea of what to expect.
David Lawish, a portfolio manager in the resolution and a former partner in Generation, said that the intention is to use what, according to him, would become a sudden acceleration in the pace of the green transition, as it enhances the consequences of climate change.
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“The transition to Net Zero is a major event,” Lawish said in an interview. First, “everything will take more time than you think, and then they change much faster than you think.” Investors who do not adapt can face “very big losses,” he added.
The goal is to deliver investment income, which is from 2 to 3 percentage points above the MSCI world index, according to the resolution. The fund has 25 million dollars. The United States from starting capital, and during the first year, the amount of the amount of up to 200 million dollars will be growing. USA with a power limit of $ 10 billion.
The permits fund will contain approximately 30 public trading companies, including Top Holdings, including the TAIWAN SEMICONDUCTOR ManUFACTURING CO., Microsoft Corp., Alphabet Inc. and Aon PLC. The main attention will be paid to companies that conduct efforts to decarbonization, as well as on those whose products help others reduce emissions or adapt to warming the world.
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Lawish says that investment in the climate has developed greatly from the first days. Investments in green small caps turned out to be a problem strategy as soon as interest rates began to grow after a pandemic. The subsequent transition in the company with great capitalization, making bold climatic promises, has also fallen flatly since then, paving the path to the fact that Lawish describes as “investment in climate 3.0”.
According to Lawish, those distributions of capital are currently much more “demanding and insightful” about the content of their portfolios.
The global strategy of joint -stock capital of the resolution will be registered as a product of Article 9, which is the most strict green investment category in the European Union. According to him, the company intends to launch the US equivalent strategy for a year.
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