Statement: Facing climate risk litigation, CPPIB made at least $6 billion in new fossil fuel investments in 2025
Toronto, ON | Traditional territories of the Wendat, Anishnaabeg, Haudenosaunee, Chippewas, and Mississaugas of the Credit First Nation
Facing landmark climate risk litigation, the Canada Pension Plan Investment Board (CPP Investments, or CPPIB) made at least $6 billion* in new bets on fossil fuel assets in the 2025 calendar year. This includes nearly $2 billion** in fossil fuel investments reported in CPPIB’s Third Quarter Fiscal 2026 results, announced today and covering the period of October 1 to December 31, 2025.
New fossil fuel investments expose CPPIB and its more than 22 million Canadian beneficiaries to unacceptable levels of climate-related financial risk. Fossil fuels are the primary cause of the global climate crisis, and fossil-dependent assets face significant transition risks as the energy transition unfolds.
The quarterly report comes a day after CPPIB announced yet another fossil fuel-linked investment – a 50% stake in Peruvian power generation company Inkia Energy for an estimated $2.3 billion. Inkia and its subsidiaries own and operate hydroelectric, gas-fired and solar power generation assets in Peru. According to the company’s website, 56% of Inkia’s power generation capacity comes from fossil gas plants. Another Inkia subsidiary is a fossil gas producer, although this was not disclosed by CPPIB. CPPIB did not appear to disclose any intention or plan to align Inkia’s business model with global climate targets, and signaled it would support Inkia’s continued development of gas projects.
CPPIB appears to be an outlier in the Canadian pension sector when it comes to making new investments in private fossil fuel assets. Shift is not aware of any other Maple 8 fund making a direct investment in private fossil fuel companies since 2024. Shift estimates that CPPIB made at least $3.3 billion in new fossil fuel investments in 2024.
CPPIB’s $6 billion* in new fossil fuel investments in 2025 were made the same year that four young Canadians launched litigation against CPPIB, claiming CPPIB is breaching its duty to invest in their best interests by failing to protect their pensions from climate risk while investing billions of dollars in oil, gas, coal and pipelines.
Such investments risk becoming stranded assets in a decarbonizing world, or they’ll prolong and expand the use of fossil fuels in ways that accelerate the climate crisis. Either outcome threatens the financial sustainability of the Canada Pension Plan and undermines the retirement security of Canadians.
“CPPIB spent nearly $1.2 billion (p.100) on personnel alone last year, including at least 22 sustainable investing staff,” says Patrick DeRochie, Senior Manager at Shift. “Surely there’s someone at CPPIB that recognizes the physical realities of climate change, and is warning the board and senior management about escalating climate risks. It’s bewildering that CPPIB continues to invest Canada’s retirement fund in the fossil fuels that are threatening our future.”
In Shift’s 2025 Canadian Pension Climate Report Card, CPPIB ranked second last and fell to an overall D grade. CPPIB retreated from its net-zero target in May 2025 and also appears to have abandoned its previous commitment to invest $130 billion in “green and transition assets” by 2030. The pension manager no longer seems to have an active, publicly-disclosed climate strategy.
Background: Shift’s estimate of CPPIB’s new investments in fossil fuels in 2025
As reported in CPPIB’s Third Quarter Fiscal 2026 results, announced today:
$1.4 billion in October 2025 for a minority stake in AlphaGen, which owns and operates 23 power plants that burn fossil gas, oil, diesel and kerosene across six U.S. states.
A $421 million** commitment to ArcLight Capital Infrastructure Partners VIII, which CPPIB says “will focus on firm power, renewable energy and midstream assets, primarily in North America.” According to the Private Equity Climate Risks project, ArcLight Capital Partners owns 17 fossil fuel companies, representing 81% of the private equity firm’s energy portfolio.
Before today’s Third Quarter Fiscal 2026 results, new fossil fuel investments made by CPPIB in 2025 include:
$4.1 billion in September 2025 for a 13% stake in Sempra Infrastructure, a company that develops, owns and operates fossil gas pipelines, power generation and fossil gas export facilities in the U.S. and Mexico.
$122 million in Caturus, “a U.S.-based integrated gas-focused exploration & production and liquefied natural gas (LNG) company, through a Kimmeridge co-investment vehicle.” CPPIB reports that it currently owns a 12% stake in Caturus. This new investment is likely related to Kimmeridge’s ongoing plans and partnerships to develop fracked gas assets in Texas and build the controversial Commonwealth LNG export terminal on the U.S. Gulf Coast, following CPPIB’s US$100 million commitment to private equity fund Kimmeridge Fund VI in 2022.
CPPIB acquired a 40% stake in Allete, a major U.S. utility conglomerate whose assets include a lignite coal mine, coal- and gas-fired power plants, and gas pipelines, in December 2025 for an estimated $3.4 billion.***
Meanwhile, companies already privately owned by CPPIB are investing to expand and prolong the use of fossil fuels:
CPPIB-backed VoltaGrid recently announced that it is partnering with Halliburton and INNIO to deploy nearly 2 GW of fossil gas power to support data centre development.
CPPIB-owned Caturus Energy, which plans to produce fracked gas in Texas for export from the proposed Commonwealth LNG terminal on the U.S. Gulf Coast, recently signed long-term agreements to supply up to 2 million tonnes per annum (mtpa) of LNG to Saudi Aramco and up to 1 mtpa to Mercuria Energy Trading.
CPPIB-owned Tallgrass Energy is planning to develop two gas plants with a total capacity of 2.7 GW to supply what could become the largest single AI complex in the U.S. Tallgrass Energy also joined American oil and gas companies at the White House in January after President Trump summoned fossil fuel company CEOs to discuss potential investment in Venezuela following the Trump administration’s capture of the South American country’s president in January.
*This figure is an estimate that includes $341 million of CPPIB’s $421-million commitment to ArcLight, based on fossil fuel companies composing 81% of the private equity firm’s energy portfolio.
**Shift has included only $341 million of CPPIB’s $421 million commitment to ArcLight in its estimate of CPPIB’s investments in fossil fuels, based on fossil fuel companies composing 81% of the the private equity firm’s energy portfolio
***This figure is not included in Shift’s estimate of CPPIB’s new fossil fuel investments in the last year because it is not possible to determine the value of Allete’s fossil fuel assets as a proportion of the company.
Contact information for interview requests:
Adam Scott, Executive Director | Shift Action for Pension Wealth & Planet Health
adamscott@shiftaction.ca
416-347-3858
Patrick DeRochie, Senior Manager | Shift Action for Pension Wealth & Planet Health
patrick@shiftaction.ca
416-576-2701
Shift Action for Pension Wealth and Planet Health is a charitable initiative that works to protect pensions and the climate by bringing together beneficiaries and their pension funds to engage on the climate crisis. Shift is a project of MakeWay Canada.