Bill Gates' $1bn energy fund pauses new investments

Impact Loop has previously reported on the Gates Foundation’s record $9 billion spending pledge for 2026, alongside plans to cut up to 500 jobs by 2030 as the foundation accelerates its wind-down ahead of a planned 2045 closure.

That broader restructuring at the Gates organisation now appears to be extending to one of its energy investment arm, according to reports by Axios and Bloomberg.

Bill Gates’ Breakthrough Energy fund, Catalyst, launched in 2021 to help commercialise early-stage climate technologies that struggle to move from pilot to full commercial scale. According to Axios and Bloomberg, the vehicle had raised more than $1 billion to back these high-risk demonstration projects.

Shifted priorities

Bloomberg quoted a Breakthrough Energy spokesperson as saying the fund has shifted its priorities away from sourcing new investments and towards supporting its existing portfolio.

As part of that shift, the organisation cut roles – including the departure of Mario Fernandez, the fund’s former head – because, the spokesperson said, the work now requires a smaller team. The spokesperson also told Bloomberg there are no immediate plans to raise additional capital and declined to disclose details about the remaining funds.

Tougher financing backdrop

The report frames Catalyst’s move against a more challenging financing environment for climate startups. Bloomberg noted that rollbacks of certain Biden-era climate policies under the Trump administration have reduced expected federal support linked to the Inflation Reduction Act – a factor industry observers say has made it harder to attract private funding for capital-intensive demonstration projects.

Backed European startups

The Catalyst fund has backed several large green projects in Europe, including the e-methanol plant FlagshipONE – now cancelled – and a CO2-based battery facility by Energy Dome in Ottana, Sardinia.

It is worth noting that the fund is separate from Breakthrough Energy Ventures, the VC arm, which invests directly in early- and growth-stage companies.