Private Equity Firms Double Down on Fossil Fuels
A new analysis by the Private Equity Climate Risks Consortium finds 20 major private equity firms hold portfolios whose companies emit about 1.5 billion tonnes of greenhouse gases annually, and that these firms continue to finance oil, gas and coal infrastructure. The report says the firms — which manage roughly $7.3 trillion in assets — own extensive fossil-fuel infrastructure including pipelines, power plants and oil and gas fields, and that private equity investment in the sector has risen in recent years.
Why It Matters
The findings link large private capital pools to substantial direct emissions and to projects that could extend the life of fossil-fuel infrastructure, complicating policy efforts and corporate commitments aimed at global decarbonisation. Because the firms manage trillions of dollars, their investment choices can materially affect energy markets and emissions trajectories.
Key Facts
- Estimated annual emissions from portfolios of 20 PE firms: 1.5 billion tonnes of greenhouse gases
- Assets under management of the 20 firms: $7.3 trillion
- Fossil-fuel infrastructure held among their assets: 15,000 miles of pipelines; 124 GW of power generation across 370 fossil-fuel plants; hundreds of oil and gas fields
- Data provider and sources used in analysis: PitchBook, company websites, press releases, news articles, regulatory filings
- Historical private equity energy investment (2010–2021): PitchBook previously estimated >$1.1 trillion in energy assets, largely fossil fuels (2010–2021)
A consortium analysis published by the Private Equity Climate Risks Consortium reports that portfolios held by 20 major private equity firms are responsible for about 1.5 billion tonnes of greenhouse gas emissions per year — a level higher than the annual emissions of any country except China, the United States, India and Russia. The firms in the sample collectively manage about $7.3 trillion in assets and, according to the consortium, retain sizeable fossil-fuel infrastructure including roughly 15,000 miles of pipelines, 124 gigawatts of power generation capacity spread across 370 fossil-fuel plants, and hundreds of oil and gas fields. Researchers compiled the dataset using PitchBook and public information such as company webpages, press releases, news coverage and regulatory filings. Because of gaps in public reporting, the consortium said it could not fully verify the dollar value of fossil-fuel holdings for all 20 firms; however, a prior PitchBook analysis estimated that private equity financed more than $1.1 trillion in energy assets between 2010 and 2021, predominantly in fossil fuels. The report highlights a recent trend toward renewed investment in oil and gas infrastructure. S&P Global reported in August 2025 that private equity and venture capital investment in oil and gas transportation reached $4 billion across 13 deals in the first eight months of the year, up from $3.36 billion across 12 deals in the same period the prior year. The consortium also points to growth in carbon-intensive data centre projects linked to artificial intelligence and advanced computing: about half of the top 10 U.S. data-centre owners have taken private-equity backing, and many large data centres rely on natural gas for power. Notable firms named in the analysis include BlackRock, Global Infrastructure Partners (GIP), Energy Capital Partners, EQT and Kayne Anderson. Some firms that have publicly positioned themselves as climate-conscious appear to be increasing fossil-fuel exposure; the report cites EQT’s potential acquisition of AES Corporation, whose generation mix includes roughly 32% natural gas, 16% coal and 2% oil. The consortium also examined fund performance data: across 145 oil- and gas-focused private equity funds that began investing between 2001 and 2016, investors contributed $190.4 billion and received $192.9 billion back — a net return of about 1% according to the report. Advocates quoted by the consortium said private equity’s role in building and extending fossil-fuel infrastructure is under-scrutinised. Private Equity Stakeholder communications director Matt Parr warned that the sector’s opaque ownership and investment chains can complicate regulatory oversight and may prolong the operational life of fossil-fuel projects.
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