INFRASTRUCTURE

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.

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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.

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Paul Bodnar Global Head of Sustainable Investing

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?

Arrow
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
Climate
High impact
The parts of the world that are most susceptible to climate change represent two-thirds of global CO2 power emissions currently1
Wealth
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
Contact our Climate Finance Partnership team
BlackRock’s Climate Finance Partnership team works to help clients by seeking investments in infrastructure equity assets in emerging markets.
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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.This represents one of the largest infrastructure growth opportunities over the coming decades.
  • CFP investments will be targeted toward Asia, Latin America, and Africa. The vehicle’s 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.

One of the largest infrastructure growth opportunities over the coming decades

Investable infrastructure growth opportunities

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

The impact opportunity

  • Developing nations are most vulnerable to the impacts of climate change –yet they currently represent over two-thirds of global power emissions.
  • Our actions during this decade will be critical to avoiding the catastrophic effects of climate change – and meeting the objectives of the Paris Climate Agreement.
  • Private capital – alongside public –has a critical role in accelerating investment flows to support the energy transition in emerging markets.
  • As a global market leader in sustainable investing we are excited to continue developing and delivering market leading ways for our clients to invest in the global low-carbon transition.

Sustainability benchmarking: We are a market leader

BlackRock Renewable Power benchmarks

Source: BlackRock, June 2021.

Climate Finance Partnership key differentiators

Established renewables platform
Sixth vintage clean energy infrastructure fund 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.

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Meet our Climate Finance Partnership team

David Giordano
Managing Director, Global Head of Renewable Power
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Rael McNally
Lead Portfolio Manager for Climate Finance Partnership
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Contact our Climate Finance Partnership team
BlackRock’s Climate Finance Partnership team works to help clients by seeking investments in infrastructure equity assets in emerging markets.
Contact our team Contact our team
People