Norges Bank Investment Management (NBIM), which manages Norway’s Government Pension Fund Global, has made its first investment in an energy transition fund, committing USD 1.5bn to Brookfield Asset Management’s latest offering.

The move is fully aligned with the mandate NBIM received from the Norwegian Ministry of Finance in 2019, authorising it to invest in unlisted renewable energy infrastructure.

Since receiving this mandate, NBIM has made eight direct investments in European solar, onshore and offshore wind, and electricity transmission systems, as well as one previous indirect investment through a global renewable energy fund.

This investment in Brookfield Asset Management’s Global Transition Fund II (BGTF II), agreed on 25 September, is NBIM's second indirect investment through a fund.

Commenting on the investment, NBIM global head of renewable energy infrastructure, Harald von Heyden, said: “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.”

The fund is focused on the energy transition, renewable energy, and sustainable solutions that help accelerate the transition to a net-zero economy.

BGTF II will make investments in various regions, including North America, South America, Europe, and the Asia Pacific, where Brookfield already has a presence.

Von Heyden said that after thorough due diligence on both investment and non-financial risks, NBIM are “confident” in the choice 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,” he concluded.

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