BlackRock raised $ 673 million for the Climate Finance Partnership (CFP), a public-private financial vehicle focused on investing in climate infrastructure in emerging markets, which aims to accelerate the global transition to a low-carbon economy carbon. A global consortium of 22 investors, including governments, philanthropic entities and institutional investors, committed to the fundraising, which was joined by several partners, and which exceeded the $ 500 million target.
The BlackRock Investment Institute estimates that for a just transition to a net zero global economy it is necessary to invest $ 1 trillion annually in low-emission projects in developing countries, whose impact on global emissions is constantly growing. due to population growth and economic development. But in 2020, investments in the decarbonisation of emerging markets, excluding China, stopped at $ 150 billion.
“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, CEO of BlackRock. “This partnership is proof that governments, philanthropic organizations and institutional investors can come together to mobilize capital on a scale in emerging markets, which are most exposed to the impact of climate change.”
The CFP employs a unique, mixed finance structure with a total of $ 130 million in capital raised by the governments of France, through the French Development Agency (AFD), Germany, through the KfW Development Bank (KfW), and Japan, through the Japan Bank for International Cooperation (JBIC), together with the Grantham Environmental Trust, the Quadrivium Foundation, another private foundation and multi-energy company TotalEnergies. This capital seeks to isolate investment risks for institutional investors and has mobilized $ 523 million in funding from large investors, including Axa, Dai-ichi Life Insurance, E.ON, Mitsubishi UFJ Morgan Stanley, Mizuho Bank and MUFG Bank. “CFP addresses one of the key challenges of investing in the net-zero transition in emerging markets. This innovative structure, where every dollar of catalytic funding from public development banks and philanthropic entities has attracted four dollars of institutional capital, shows the power of innovation represented by the public-private pairing in driving the transition to clean energy, in emerging countries in Asia, Latin America and Africa, “said Philipp Hildebrand, Vice Chairman of BlackRock.
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Source From: Ansa
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