Despite political challenges, the energy transition remains strong, evidenced by significant investor commitments. Brookfield raised $20 billion for its second energy transition fund, surpassing its 2021 fund by 33%. Energy Impact Partners closed its third flagship fund with $1.36 billion, 40% larger than its previous one.
Since 2014, large LPs have committed nearly $1 trillion to the energy transition. Climate tech VCs are outpacing the broader venture world, securing a larger percentage of commitments, reaching 3.8% of all venture capital this year, nearly double their share in 2020. Renewable capacity worldwide is expected to double by 2030, with solar installations leading in China, India, the EU, and Sub-Saharan Africa. Renewables are projected to provide 65% of the world’s electricity by 2040 and nearly all by 2060.