BlackRock secures USD 250m for climate infrastructure finance vehicle

BlackRock Inc (NYSE:BLK) has obtained over USD 250 million (EUR 211m) in commitments for the Climate Finance Partnership (CFP), a flagship blended finance vehicle that will invest in climate infrastructure, including renewables, across emerging markets.

CFP will focus investment on: grid-connected and/or distributed renewable power generation; energy efficiency in residential, commercial and/or industrial sectors; transmission or energy storage solutions; and ultra-low emission or electrified transportation and mobility services. It targets at least USD 500 million and plans to spend the amount on projects in select countries in Asia, Latin America and Africa.

The commitments came from a consortium of global institutional investors, governments and philanthropies. More specifically, a combined USD 112.5 million in catalytic capital has been pledged by the French Development Agency (AFD), KfW Development Bank (KfW), Japan Bank for International Cooperation (JBIC), the Grantham Environmental Trust, the Quadrivium Foundation and one other private foundation. BlackRock said that this is being used to mobilise a broader institutional capital raise, beginning with commitments from Dai-ichi Life Insurance, Standard Chartered Bank and MUFG Bank.

“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,” commented Remy Rioux, CEO of AFD.

(USD 1.0 = EUR 0.843)

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