BlackRock has achieved a US$673 million final fundraise for the Climate Finance Partnership.
The public-private finance vehicle focuses on investing in climate infrastructure across emerging markets in order to help accelerate the global transition to a net zero economy. A global consortium of 22 investors including governments, philanthropies, and institutional investors committed to the fundraise, which exceeded its target of US$500 million.
CFP employs a finance structure with a total of US$130 million in catalytic capital raised from 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; and multi-energy company TotalEnergies. US$523 million has been raised from investors including AXIS Capital, AP2, AXA, Dai-ichi Life Insurance, E.ON, Finnish Church Pension Fund, Mitsubishi UFJ Morgan Stanley, Mizuho Bank, MUFG Bank, the Richter Family Office, Standard Chartered Bank, Sumitomo Life, and a leading European pension fund. BlackRock committed US$20 million to CFP.
CFP will target investments in select non-OECD countries in Asia, Latin America, and Africa. These regions present significant investment opportunities for global investors in climate infrastructure over the coming decades due to significant growth in electricity demand, increasing urbanization and rapid economic development. 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.
“Achieving a just transition to a net zero economy by 2050 requires long-term planning and close coordination between the public and private sectors,” said Larry Fink, Chairman and CEO of BlackRock. “This partnership is proof that governments, philanthropic organizations, and institutional investors can come together to mobilize capital at scale into emerging markets, which are most exposed to the impact of climate change. My hope is that leaders across all segments of society will embrace bold, innovative solutions to help meet the climate financing gap.”