INFRASTRUCTURE

Climate Finance Partnership

Why BlackRock for Climate Finance Partnership?

The Climate Finance Partnership (CFP) team seeks equity investments in high quality emerging markets climate infrastructure assets, investing across Asia Pacific, Latin America, and Africa. The strategy seeks to provide access to a globally diversified portfolio of renewable power assets in developing countries seeking to deliver positive environmental and social impact and attractive total return. The strategy is built on deep origination capabilities through long-term relationships of the dedicated renewable power investment team who manage over US$9 billion in AUM globally1.

High growth
Through investments in the fastest growing energy markets in the world. 50% of all global energy will come from non-OECD renewables by 20502
High impact
In parts of the world that need it the most. Two-thirds of global CO2 power emissions come from emerging markets1
Innovative structure
Providing risk and return protection for institutional investors. Governments and impact organizations provide subordinated capital as catalytic partners

Climate Finance Partnership economic opportunity

  • The transition to a low-carbon world is set to accelerate with emerging economies increasingly embracing clean energy and infrastructure given its cost competitiveness.
  • Rising populations, strong consumption growth and increased electrification result in electricity demand almost doubling in countries outside of the Organization for Economic Co-operation and Development (OECD) creating a substantial, attractive, investable universe for CFP.
  • It is estimated that by 2050, nearly half of global energy capacity will be in the form of non-OECD renewables. This requires vast sums of public and private investment estimated to be $4.89 trillion in the next 15 30 years.2
  • This represents one of the largest infrastructure growth opportunities over the coming decades

One of the largest infrastructure growth opportunities over the coming decades

 

One of the largest infrastructure growth opportunities over the coming decades

Source: Bloomberg NEF, New Energy Outlook 2020: Cumulative installed capacity. Data as of February 2021.

Climate Finance Partnership impact opportunity

  • The climate challenge in emerging markets– firstly, developing markets are currently the source of over two-thirds of global power emissions.
  • Secondly, the economic impact of climate change is concentrated in emerging markets – where they feel the outsized effects of climate change.
  • What we do during this decade will be critical to whether we can avoid the catastrophic effects of climate change – and meet the Paris Climate Agreement goals.
  • Private capital – alongside public – therefore has a crucial role to play in accelerating investment flows to drive the energy transition in emerging markets.

Estimated economic impact of climate change by 2050 in terms of real GDP loss

Estimated economic impact of climate change by 2050 in terms of real GDP loss

Source: Economist Intelligence Unit. Figures represent average real GDP loss by 2050. Data as of November 2019.

Climate Finance Partnership key differentiators

Established renewables platform
CFP is a natural progression of BlackRock’s renewable power business expanding into emerging markets with our global developer and utility partners.
Support of CFP’s catalytic partners
Bringing deep expertise and a long track-record investing in emerging markets
A risk aware fiduciary approach
BlackRock’s fiduciary-first culture and proven risk management and organizational stability that is required to invest in emerging markets

BlackRock’s latest climate infrastructure insights

Meet our Climate Finance Partnership team

David Giordano
Managing Director, Global Head of Renewable Power
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Rory O’Connor
Managing Director, Global CIO and Head of Europe
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Rael McNally
Director, Climate Finance Partnership Head of Investments
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Martin Torres
Managing Director, Head of Americas
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Keith Mangan
Managing Director, Head of APAC
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Peter Raftery
Managing Director, Global Head of Technical & A.M.
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Patrick Flynn
Head of Finance and Operations
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Freek Spoorenberg
Head of Product Strategy & Investor Relations
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