"The energy transition is seemingly under assault, with Congressional Republicans killing tax credits for clean energy and the Trump administration threatening to cancel billions of dollars worth of grants. But there are signs the setback might not be as catastrophic for the transition as the headlines make it sound. Investor sentiment, which judging by the size of two new funds, remains strong."
"This week, Brookfield announced it had raised $20 billion for its second energy transition fund. The infrastructure investor has already deployed $5 billion of that money into renewable power projects and developers focusing on solar, wind, and battery storage. Perhaps more notable is the fact that Brookfield raised 33% more money this time around than it did for its first transition fund in 2021, when zero percent interest rates and a frothy economy led some to speculating that clean energy was entering a bubble."
Political moves are creating headwinds for the energy transition, including cuts to tax credits and threats to cancel grants. Investor sentiment remains robust, evidenced by large new funds and more founders entering the sector. Brookfield raised $20 billion for its second energy transition fund and has deployed $5 billion into renewable power projects and storage, raising 33% more than its first fund. Energy Impact Partners closed a $1.36 billion fund, about 40% larger than its prior fund, and targets growth-stage climate tech companies with median rounds around $26 million. Allocations from these funds are already being deployed to operating companies.
Read at TechCrunch
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