{"id":60695,"title":"Private equity portfolios linked to 1.5 billion tonnes of annual emissions","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2026-10-05T04:41:15+00:00","modified":"2026-10-05T04:41:15+00:00","canonical_url":"https://stockmark.it/private-equity-firms-double-down-on-fossil-fuels/","markdown_url":"https://stockmark.it/private-equity-firms-double-down-on-fossil-fuels.md","json_url":"https://stockmark.it/private-equity-firms-double-down-on-fossil-fuels.json","category":"Energy","categories":["Energy","Investment","Private equity"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/2026/10/private-equity-portfolios-linked-to-1-5-billion-tonnes-of.png?fit=1536%2C1024&quality=80&ssl=1","format":"news","language":"en-GB","content":"Private equity firms are maintaining heavy investment in fossil fuel industries despite earlier commitments to environmental, social, and governance standards. A recent analysis indicates that the portfolios of 20 major private equity firms hold assets responsible for producing 1.5 billion tonnes of greenhouse gases annually. This volume of emissions exceeds the annual output of any nation except China, the United States, India, and Russia. The firms involved manage a combined total of $7.3 trillion in assets, positioning them to influence significant global financial decisions while continuing to support the development of oil, gas, and coal infrastructure.\n\nThe Private Equity Climate Risks Consortium conducted the analysis by examining the energy infrastructure investments of these 20 firms. The data reveals that the firms own 15,000 miles of pipelines, 124 gigawatts of power generation capacity spread across 370 fossil fuel-powered plants, and hundreds of oil and gas fields. Researchers gathered this information from the private markets data provider PitchBook, as well as from company websites, press releases, news articles, and regulatory filings. Although gaps in the data prevented verification of the total quantity invested in fossil fuel assets, a previous PitchBook analysis suggested that private equity funded more than $1.1 trillion in energy assets between 2010 and 2021. The overwhelming majority of these investments were directed toward fossil fuel assets.\n\nThe firms assessed in the report include BlackRock, GIP, Energy Capital Partners, EQT, and Kayne Anderson. The analysis suggests that these entities have increased the number of fossil fuel companies in their portfolios since 2024. This trend aligns with broader market movements reported by S&P Global in August 2025, which indicated that global private equity and venture capital investments in oil and gas transportation were on track to surpass previous year levels. Investment in this sector, which includes crude oil and natural gas pipelines, refined fuel distributors, and shipping companies, totalled $4 billion across 13 deals between January and August of the previous year. This figure was higher than the $3.36 billion recorded across 12 deals in the same period the year before.\n\nThe continued investment in greenhouse gas-producing industries is expected to be driven in part by the artificial intelligence boom. Several technology companies worldwide are developing large-scale data centres, many of which rely on natural gas to power advanced computing operations. This demand is anticipated to drive up carbon emissions. Approximately half of the top 10 data centre owners in the United States have received support from private equity. Matt Parr, communications director for Private Equity Stakeholder, noted that the industry does not receive sufficient scrutiny for its contribution to global emissions and described the business model as opaque. Parr questioned how regulators manage and track these diverse investments while keeping rates affordable for ratepayers, adding that such investments are likely to keep fossil fuel projects alive for a longer period.\n\nSome firms have previously stated aims to avoid fossil fuel investment, but recent actions suggest a shift in strategy. EQT, a Swedish global investment organisation that has positioned itself as a climate-conscious investor supporting the green transition, is reportedly considering the acquisition of energy company AES Corporation. Natural gas accounts for roughly 32 per cent of AES’s total generation capacity, while coal contributes 16 per cent and oil 2 per cent. Private equity firms have often argued that fossil fuel investments reliably perform well, but the Private Equity Climate Risks Consortium’s assessment challenges this view. The consortium reviewed 145 oil- and gas-focused private equity funds with available performance data that began investing between 2001 and 2016. Investors contributed a total of $190.4 billion to these funds and received $192.9 billion back, representing a return of just 1 per cent. This financing contributes to rising greenhouse gas emissions and stands in contrast to the energy transition goals of several governments."}