Anmay Dittman
Managing Director, Lead Portfolio Manager for Climate Finance Partnership
The history behind the Climate Finance Partnership
The Climate Finance Partnership (CFP) seeks to accelerate the flow of capital into climate-related investments in emerging markets. The unprecedented partnership between BlackRock and the governments of France (AfD), Germany (KFW), and Japan (JBIC) as well as a number of leading impact U.S. organizations, was first conceived at the One Planet Summit in New York, hosted by President Macron. BlackRock and the founding catalytic partners spent significant time in the design and creation of a unique blended finance fund structure that seeks to bring their collective skills and capabilities together in order to help mobilize private investment into emerging markets through a de-risking of the investment set for institutional investors. The structure seeks to provide a narrower standard deviation of outcomes for institutional investors alongside access to the fastest growing infrastructure segment, and markets, of the next 30 years. Aggressive action is necessary in order to limit climate change to well below 2°C, keeping a view to a 1.5°C limit, and we believe that institutional investors have a role to play in seeking to harness the significant economic opportunities embedded in this accelerated transition to a low-carbon economy globally.
The CFP provides exposure to the fastest growing renewable energy markets in the world, with OECD-like risk return profile and unparalleled deal sourcing and risk mitigating relationships via our catalytic partners.
BlackRock, the world’s largest asset manager, has extensive experience in renewable power and sustainable investing and is committed to factoring climate- and other environmental-related risks into their investment and risk management processes, including developing new approaches to measuring physical climate risks, and stress testing portfolios for future carbon price scenarios. CFP is part of BlackRock’s ongoing efforts to provide investors with more and more ways to invest their capital in strategies that accelerate the global low-carbon transition.
Why BlackRock for Climate Finance Partnership?
High growth
Invest in the fastest growing energy markets in the world with 50% of all global energy expected to come from non-OECD renewables by 20502
High impact
The parts of the world that are most susceptible to climate change represent two-thirds of global CO2 power emissions currently1
Innovative structure
CFP brings catalytic capital to de-risk investing in emerging markets for institutional investors to mobilize investment into climate infrastructure assets in emerging markets
Impact
The Climate Finance Partnership is dedicated to accelerating the flow of capital into renewable energy across emerging markets and thereby supporting the transition to a low-carbon world. Our global team of investment professionals is focused on driving financial returns through renewable energy generation, storage, and transmission in developing economies.
CFP is further characterized by its attention to management of environmental, social, and governance risks. We are committed to working with companies to raise their labor standards and provide safe, high-quality jobs that will bring economic stability to local populations. Making clean energy more accessible further opens the doors of opportunity to the communities impacted by these investments.
This Climate Finance Partnership Impact Report provides an overview of the CFP approach and details key achievements to date, highlighting the environmental and social impact CFP delivered in line with the fund objectives and our role as a fiduciary.
The 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 creating a substantial, attractive, investable universe for CFP.
- 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 $4.8 trillion in the next 15 years.2 This represents one of the largest infrastructure growth opportunities over the coming decades.
- CFP investments will be targeted toward Asia, Latin America, and Africa. Our focus on climate infrastructure will include; clean power generation including distributed generation; energy efficiency in residential, commercial and/or industrial sectors; transmission, distribution and energy storage solutions; as well as possible ultra-low emission or electrified transportation and mobility.
Climate Finance Partnership key differentiators
Established renewables platform
Six vintages of clean energy infrastructure funds expanding into emerging markets in partnership with our catalytic partners as well as our global relationships.
Collaboration with our catalytic partners
Bringing many decades of ‘boots on the ground’ expertise and a long track-record of successful sustainable investment in emerging market renewables and infrastructure.
BlackRock’s global scale & local expertise
Leverage BlackRock’s and Real Assets global scale and reach for unparalleled deal sourcing, structuring and risk management.
An external grievance mechanism (“ECM”) is available for individuals or communities to raise environmental and social concerns about CFP’s investment activities. CFP’s ECM is administered through NAVEX, a system for receiving, tracking and responding to inquiries via their EthicsPoint software. The ECM can be accessed here.
Meet our Climate Finance Partnership team
