Top private-equity firms emit more CO2 annually than most nations, study shows
A new report finds that the energy holdings of the 20 largest private-equity firms generate about 1.5 billion tonnes of greenhouse gases each year, outpacing the emissions of every country except China, the United States, India and Russia.
Analysis by the Private Equity Climate Risks Consortium reveals that the 20 biggest private-equity groups manage $7.3 trillion in assets and their energy investments emit roughly 1.5 billion tonnes of CO₂ annually, surpassing the emissions of all nations except China, the United States, India and Russia. Their holdings encompass 15,000 miles of pipelines, 124 GW of generation capacity spread over 370 fossil-fuel plants, and hundreds of oil and gas fields, as well as data-center projects that depend on gas- and coal-fired power.
While gaps in data prevented a precise calculation of total fossil-fuel investment, prior PitchBook analysis indicates private equity has financed more than $1 trillion in such assets since 2010. Firms like BlackRock, GIP, Energy Capital Partners, EQT and Kayne Anderson have raised their fossil-fuel stakes in 2024, and potential acquisitions could add coal and gas plants to their portfolios. Critics warn that private-equity ownership of utilities and data-center operators creates conflicts of interest that may prolong reliance on fossil fuels, complicating the energy transition.
Why it matters
The scale of private-equity emissions highlights a major, under-scrutinized source of global greenhouse gases that could hinder climate goals.
In this story
