CARLYLE’S UPSTREAM INVESTMENTS & THE ENERGY TRANSITION

The report finds that The Carlyle Group and NGP Energy Capital have significant exposure to transition risk, with a large portion of their upstream portfolio's planned capital expenditure incompatible with the Paris Agreement's goals. It argues that Carlyle's 'net zero' targets are insufficient because they exclude Scope 3 emissions and minority investments, while its investment strategy continues to favor production expansion despite IEA warnings that no new oil and gas fields are needed for a 1.5°C scenario.

• Carlyle's portfolio is more exposed to transition risk than nearly all major oil companies, with a significant amount of planned capital expenditure only viable in a higher temperature (2.5°C) scenario.
• Carlyle and NGP's investments are not fully aligned with the Paris Agreement; specifically, less than 30% of NGP's potential project options fit within a 1.65°C low-carbon world.
• Despite the IEA's guidance that no new projects are required for a 1.5°C scenario, Carlyle and NGP-backed companies have earmarked over $132 billion in capital expenditure for future unsanctioned projects.
• Carlyle's 'net zero' target is deemed non-compliant with the Paris Agreement because it excludes minority investments and Scope 3 emissions, the latter of which account for 85% of emissions for oil and gas companies.
• A substantial amount of planned capital expenditure—approximately $48 billion—is only economically viable in high-fossil-demand scenarios, increasing the risk of stranded assets.

APA

Private Equity Stakeholder Project (2022). CARLYLE’S UPSTREAM INVESTMENTS & THE ENERGY TRANSITION. https://pestakeholder.org/wp-content/uploads/2022/12/CTI_Report_CarlylesUpstream_EnergyInvestments_Dec2022.pdf

Chicago

Private Equity Stakeholder Project. CARLYLE’S UPSTREAM INVESTMENTS & THE ENERGY TRANSITION. 2022. https://pestakeholder.org/wp-content/uploads/2022/12/CTI_Report_CarlylesUpstream_EnergyInvestments_Dec2022.pdf.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=CARLYLE’S UPSTREAM INVESTMENTS & THE ENERGY TRANSITION |date=December 2022 |url=https://pestakeholder.org/wp-content/uploads/2022/12/CTI_Report_CarlylesUpstream_EnergyInvestments_Dec2022.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2022carlyles, author = {{Private Equity Stakeholder Project}}, title = {{CARLYLE’S UPSTREAM INVESTMENTS \& THE ENERGY TRANSITION}}, institution = {Private Equity Stakeholder Project}, year = {2022}, month = dec, url = {https://pestakeholder.org/wp-content/uploads/2022/12/CTI_Report_CarlylesUpstream_EnergyInvestments_Dec2022.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }