{"id":204738,"date":"2025-10-11T08:21:11","date_gmt":"2025-10-11T08:21:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/204738\/"},"modified":"2025-10-11T08:21:11","modified_gmt":"2025-10-11T08:21:11","slug":"investors-are-betting-21-billion-that-the-energy-transition-isnt-going-away","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/204738\/","title":{"rendered":"Investors are betting $21 billion that the energy transition isn\u2019t going away"},"content":{"rendered":"

The energy transition is seemingly under assault, with congressional Republicans killing tax credits<\/a> for clean energy and the Trump administration threatening to cancel billions of dollars\u2019 worth of grants<\/a>.\u00a0<\/p>\n

But there are signs the setback might not be as catastrophic for the transition as the headlines make it sound.<\/p>\n

Investor sentiment, judging by the size of two new funds, remains strong. And more founders are pouring into the sector. The upshot: People and organizations are betting money and time that the energy transition isn\u2019t going away.<\/p>\n

This week, Brookfield, the Canadian infrastructure and asset management giant, announced it had raised $20 billion for its second energy transition fund. Brookfield has already deployed $5 billion of that money into renewable power projects and developers focusing on solar, wind, and battery storage.<\/p>\n

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 speculate that clean energy was entering a bubble<\/a>. This second, larger fund raised in a less exuberant period suggests that limited partners see durable growth ahead.<\/p>\n

Also this week, Energy Impact Partners (EIP) announced it had closed its third flagship fund with $1.36 billion in commitments, some 40% larger than the previous one. EIP is a venture fund that invests after early-stage startups prove their mettle; the median size of a round it invests in is $26 million, according to PitchBook.<\/p>\n

Climate tech \u2014 or whatever people are calling it these days<\/a> \u2014 has seen an uptick in new founders flocking to the sector over the past five years, driven by a changing climate that became too hard to ignore<\/a> for many. Not all of those will have survived (such is the nature of early-stage startups), but enough have made it that investors see opportunity in funding the next stage of their growth.<\/p>\n

Techcrunch event<\/p>\n

\n\t\t\t\t\t\t\t\t\tSan Francisco
\n\t\t\t\t\t\t\t\t\t\t\t\t\t|
\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 27-29, 2025\n\t\t\t\t\t\t\t<\/p>\n

Already, EIP has deployed about a quarter of its new fund to companies like GridBeyond, which helps manage distributed energy resources, and Quilt<\/a>, a consumer-facing heat pump manufacturer.<\/p>\n

Investing trends that have developed over the past decade remain strong. Since 2014, large LPs like pension funds and endowments have committed nearly $1 trillion<\/a> to the energy transition. And while climate tech VCs are on track to raise about as much as last year, they\u2019re outpacing the broader venture world, securing a larger percentage of commitments. This year, they\u2019ve raised 3.8% of all venture capital, nearly double their share in 2020, according<\/a> to PitchBook.<\/p>\n

In the U.S., there are headwinds in the near term. <\/p>\n

The Trump administration is openly opposed<\/a> to the idea of an energy transition, and it is doing its best to undermine what progress has been made. As a result, the International Energy Agency (IEA) has revised downward<\/a> the forecast for renewable adoption in the U.S., predicting that the rollout between now and 2030 will be 45% lower than the agency had predicted last year.<\/p>\n

Despite that, renewable capacity worldwide is expected to double by 2030, led by solar installations in China, India, the EU, and Subsaharan Africa<\/a>.<\/p>\n

The IEA isn\u2019t the only organization predicting that the transition will continue. Analysts at DNV expect<\/a> that renewables will provide 65% of the world\u2019s electricity by 2040 and nearly all of it by 2060.\u00a0<\/p>\n

It won\u2019t be enough to hit net-zero carbon emissions by 2050, DNV said. But few transitions are without their ups and downs, and the momentum appears to favor more renewable energy, not less.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"The energy transition is seemingly under assault, with congressional Republicans killing tax credits for clean energy and the…\n","protected":false},"author":2,"featured_media":204739,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[5438,45,49,48,100355,9248,304],"class_list":{"0":"post-204738","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-brookfield","9":"tag-business","10":"tag-ca","11":"tag-canada","12":"tag-energy-impact-partners","13":"tag-energy-transition","14":"tag-renewable-energy"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/204738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=204738"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/204738\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/204739"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=204738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=204738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=204738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}