Investors are betting $21 billion that the energy transition isn’t going away

Power transfer with the Congressional Republicans is in the apparent attack Kill Tax Credit Clear power and threat to the administration of Trump Cancel Billions of Dollars worth of grantsThe

However, there are symptoms that the headlines may not be a catastrophic infection as it makes it sound.

Investors’ feelings, which judge by the size of two new funds, remain stronger. And more founders are ing in the sector. Upasht: People and companies are betting money and time that energy transfer does not go away.

This week, Brookfield has announced that it has collected $ 20 billion for its second power conversion fund. Infrastructure investors have already deployed $ 5 billion in renewable power projects and developers, focusing on solar, air and battery storage.

Possibly notable that Brookfield raised 33% more than this time in its first conversion fund in 2021, while zero percent interest rates and a frooth economy managed to guess that there was clear power Entered a bubbleThe The second, the greater fund raised during the low passionate period suggests that limited partners see sustainable growth in front.

Also this week, Energy Impact Partners have announced that it has closed its third flagship fund with a promise of $ 1.36 billion, which is about 40% larger than ever. EIP is an initiative fund that invests in early startups after proves their metal; According to the pitchbook it invests in the medium size of a round $ 26 million.

Climate Technology – or whatever Nowadays it is calling – have seen an enthusiasm for the new founders walking in the last five years, which turned by the changing climate that was turned Too hard to ignore For many Not all of them will survive (such as the nature of startups in the early stages), but it has made considerable amounts that investors see the opportunity to finance the next stage of their growth.

In the meantime, EIP has deployed to a quarter of its new funds like Gridbaynde, which helps manage the distributed energy resources and QuiltA consumer-united heat pump manufacturer.

In the past decade, the trends of developed have remained stronger to invest. Since 2014, large LPs like Pension Funds and Enders are committed About 1 trillion dollars Convert to energy. And the climate tech VCs are on the way to increase last year, they are surpassing the world of more extensive initiatives, securing a larger percentage of promises. This year, they have collected 3.8% of the capital’s capital, about twice their shares in 2020, Accordingly Pitchbook.

In the United States, there are headwinds nearby.

Trump is in administration Public opposition It is best to do the concept of a energy change and to reduce what it has progressed. As a result, there are international energy bodies Modified to the bottom The United States predicted renewable adoption, predicting that the rollout out of 20 will be 5% lower than last year’s forecast.

Nevertheless, the global renewable power is expected to double by 2030, led by China, India, EU and solar deployment Subsaharan AfricaThe

The IEA is not the only company that predicts that the transformation will continue. DNV analysts Expectation These renewables will supply about 65% of the world’s electricity by 2040 and almost all of the 2060s.

It would not be enough to hit net-zero carbon emissions by 2050, DNV said. However, some transitions are without their rise and the speed is seen in favor of more renewable energy, not less.