BlackRock Raises Funds For Climate Finance Partnership

• BlackRock raises over $250 million from a consortium of global institutional investors, governments and philanthropies for the Climate Finance Partnership
• CFP was conceived in 2018 under the leadership of French President Emmanuel Macron at the One Planet Summit and invests in climate infrastructure across emerging markets
• CFP brings together public, philanthropic and private sectors to work together to mobilize significant investment into climate infrastructure, which can then deliver positive environmental and social impact and allow for attractive risk-adjusted returns
• As energy demand in emerging markets is expected to double by 2050, a significant capital is definitely required for climate infrastructure, such as renewable power, to help reduce carbon emissions
• The less developed regions, which face challenges from rising population, increase in energy demand and climate disruption, can also transition towards net zero by 2050 only if they receive more institutional capital flows

Over $250 million in commitments has been raised by Global Investment Manager BlackRock from a consortium of global institutional investors, governments and philanthropies for the Climate Finance Partnership (CFP).

CFP was conceived in 2018 under the leadership of French President Emmanuel Macron at the One Planet Summit and invests in climate infrastructure across emerging markets with a view to accelerate the global transition to a low carbon economy.

As energy demand in emerging markets is expected to double by 2050, a significant capital is definitely required for climate infrastructure, such as renewable power, in these regions to help reduce carbon emissions. The less developed regions, which face challenges from rising population, increase in energy demand and climate disruption, can also transition towards net zero by 2050 only if they receive more institutional capital flows. Approximately about $9 trillion will be required for the emerging markets to derive two-thirds of their energy from renewable power by 2050.

In this regard, CFP brings together public, philanthropic and private sectors to work together to mobilize significant investment into climate infrastructure, which can then deliver positive environmental and social impact and allow for attractive risk-adjusted returns.

Speaking about the raise in funds, Global Head of BlackRock Alternative Investors Edwin Conway said, "We are honored to collaborate with this group of likeminded organizations from the public and private sectors to raise initial capital that will be used to help unlock the energy transition in emerging markets through the CFP."

CFP's structure is designed to invest in new solutions that can help communities in developing countries that are most vulnerable to the impacts of climate change. Also, all the parties of CFP believe that aggressive action is necessary to limit the global temperature increase to 1.5°C, and that the actions should generate economic opportunities, even while transitioning to a global low-carbon economy.

In April, BlackRock Real Assets of global investment manager BlackRock had achieved financial closure for its Global Renewable Power Fund III (GRP III), raising a total different dimension of funds – $4.8 billion from more than 100 institutional investors (see BlackRock Fund Raises $4.8 Billion For RE Fund)