Climate Finance Partnership Raises US$250 Million at First Close to Invest in Emerging Market Climate Infrastructure
BlackRock has received over US$250 million in commitments for its Climate Finance Partnership (CFP) from various institutional investors and governments. This initiative aims to enhance climate infrastructure investments in emerging markets, fostering a transition to a low-carbon economy. Major commitments include US$112.5 million in catalytic capital from France, Germany, Japan, and notable foundations. The CFP seeks to raise a total of US$500 million and will focus on sectors like renewable power generation and energy efficiency.
- Secured over US$250 million in commitments for CFP.
- Catalytic capital of US$112.5 million from prominent governments and foundations.
- Targeting a total capital raise of US$500 million.
- Addresses significant energy demand in emerging markets by investing in renewable infrastructure.
- None.
BlackRock has secured more than US
The Governments of France, through the French Development Agency (AFD); Germany, through KfW Development Bank (KfW); and Japan, through Japan Bank for International Cooperation (JBIC); together with the Grantham Environmental Trust, the Quadrivium Foundation, and another private foundation committed a combined US
With energy demand in emerging markets poised to double by 2050, there is significant capital required for climate infrastructure, such as renewable power, in these regions to help reduce carbon emissions. Approximately US
It is the shared belief of all CFP parties that aggressive action is necessary in order to limit the global temperature increase to 1.5°C, in a manner that harnesses the economic opportunities embedded in the transition to a global low-carbon economy.
“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 Climate Finance Partnership,” said Edwin Conway, Global Head of BlackRock Alternative Investors.
CFP will target investments in select countries in Asia, Latin America, and Africa. The fund’s focus on the climate infrastructure sector include: (i) grid connected and/or distributed renewable power generation; (ii) energy efficiency in residential, commercial and/or industrial sectors; (iii) transmission or energy storage solutions; and (iv) ultra-low emission or electrified transportation and mobility services. The Partnership is targeting at least US
Rémy Rioux, CEO of the French Development Agency (AFD), said, “The unique challenges posed by climate change call for stronger joint action, public and private. It is therefore with great pride that the AFD Group, through its private-sector subsidiary PROPARCO, is partnering with BlackRock, the largest asset manager worldwide, to accelerate the mobilization of private-sector financing toward climate. This ambitious partnership, forged with Germany, Japan and leading global foundations, will help redirect financial flows toward sustainable development investments across the emerging world, with a priority to Africa as a key continent to France and Europe and one of the most vulnerable regions to climate change despite contributing the least to global warming. Our partnership illustrates the power of the Finance in Common (FiCS) movement, regrouping all Public Development Banks (PDBs) to co-invest with private financiers.”
State Secretary Jochen Flasbarth from the German Ministry for the Environment, Nature Conservation and Nuclear Safety, said, “I am excited that the Climate Finance Partnership is now aiming to bring additional institutional capital on board for investments in the energy transition in emerging markets. We are supporting this Partnership because we believe that combining the strengths of the public and private sectors is necessary in order to align finance flows with low-carbon and climate-resilient development. The Paris Agreement requires nothing less from us than the climate-friendly transformation of the financial sector.“
Tadashi Maeda, Governor of JBIC, said, “Since 2020, the world’s imminent challenge has been to overcome the COVID-19 pandemic and reinvigorate the economy. Simultaneously, the international community is striving to achieve sustainable development and energy transition toward a decarbonized society. With that in mind, the Government of Japan aims to reduce GHG emissions to net-zero, and realize a carbon-neutral society by 2050. Participating in CFP as a catalytic partner is in line with such mission and we are pleased to contribute to the sustainable development of developing countries and provision of private capital to low-carbon investment opportunities. We will continue our efforts to create an eco-system that encourages innovation for decarbonization and achieves effective energy transition, thereby contributing to the global agenda.”
Seiji Inagaki, President and Representative Director, The Dai-ichi Life Insurance Company, Limited, said, “As an institutional investor, Dai-ichi Life aims to achieve zero carbon by 2050. We actively pursue climate-related opportunities by investing in and financing projects such as renewable power to create positive impacts. We believe CFP will greatly contribute to solving various issues in emerging countries such as decarbonization, and we are pleased to invest in this fund.”
Simon Cooper, CEO, Corporate, Commercial & Institutional Banking and CEO, Europe & Americas, Standard Chartered Bank, said, “The CFP’s objective, to invest in a diversified portfolio of climate infrastructure in emerging markets, can help bring about positive environmental and social impact in line with the United Nations’ Sustainable Development Goals. This fits squarely with our aims at Standard Chartered to mobilize finance to where it matters most.”
Hironori Kamezawa, President & Group CEO, Mitsubishi UFJ Financial Group, said, “MUFG Bank appreciates this opportunity to expand our support of bringing more renewable energy to emerging markets where it is truly needed. CFP’s focus fits well with our commitment to responsible investment and our declaration to reach carbon neutrality by 2050.”
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1 BNEF New Energy Outlook 2020.
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