It’s been a confusing year for those investing in the energy transition.
On the one hand, the policy shifts that followed President Donald Trump’s election have limited growth in the sector — especially in the wake of cuts to Inflation Reduction Act tax credits. Investments in clean manufacturing have been slowing, venture capital funding for climate tech is at its lowest level in years, and investor sentiment has weakened. Just 23% of North American investors now describe climate change as significant to their investment strategy, down from 61% in 2023 and 35% last year, according to a Robeco survey released this summer.
On the other, though, major climate- and energy transition-focused funds have held prominent closes. Brookfield and Blackstone each raised $20 billion and $5.6 billion for their latest transition vehicles, respectively. The artificial intelligence boom — and the resulting load growth — have flooded certain parts of the sector with money, especially in the U.S. And globally, clean energy stocks have been doing particularly well.