Norges Bank Investment Management has committed $1.5B to Brookfield Asset Management’s Global Transition Fund II, marking its first investment in an energy transition fund.
The agreement, finalized on September 25, aligns with the sovereign wealth fund’s broader strategy to expand its exposure to unlisted renewable energy assets after receiving a mandate from Norway’s Ministry of Finance in 2019. Since then, Norges Bank has executed eight direct investments across European solar, onshore and offshore wind, and electricity transmission systems, alongside one prior indirect investment via a global renewables fund.
“BGTF II will enable us to invest in projects that develop renewable energy infrastructure, while also supporting the broader transition to low-carbon solutions across industries,” said Harald von Heyden, global head of energy and infrastructure at Norges Bank Investment Management, in a news release.
The BGTF II focuses on business transformation, clean energy, and sustainable solutions designed to accelerate the global shift toward a net-zero economy. The fund will invest across North America, South America, Europe, and Asia Pacific-— regions where Brookfield maintains an operational presence.
“After thorough due diligence on both investment and non-financial risks, we are confident in our selection of Brookfield as a partner for this important investment. Brookfield has established itself as a global leader in the energy transition space, managing one of the world’s largest renewable energy portfolios,” added von Heyden.
