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BlackRock raises $250mn to fund climate

transition in emerging markets

GLOBAL BLACKROCK has raised $250mn from a a key continent to France and Europe and one
consortium of 10 institutional investors, gov- of the most vulnerable regions to climate change
ernments and charities for its flagship blended despite contributing the least to global warming,”
finance fund, which aims to help emerging mar- said Rioux.
ket economies reduce carbon emissions. State Secretary Jochen Flasbarth from the
The Climate Finance Partnership (CFP) is German Ministry for the Environment, Nature
focused on investing in climate infrastructure Conservation and Nuclear Safety, said: “We are
across emerging market countries in Asia, Latin supporting this partnership because we believe
America and Africa, French development fund that combining the strengths of the public and
AFD said in a statement. private sectors is necessary in order to align
The partnership is targeting at least $500mn, finance flows with low-carbon and climate-re-
meaning that it secured half of its target at first silient development.”
close. “The Paris Agreement requires nothing less
Significant infrastructure investment, such as from us than the climate-friendly transforma-
in renewable power, is needed for emerging mar- tion of the financial sector,” said Flasbarth.
ket countries to limit rising carbon emissions, Tadashi Maeda, governor of JBIC, notes that
with energy demand in these countries poised the government of Japan has pledged to reach
to double by 2050. net-zero greenhouse gas (GHG) emissions and
Approximately $9 trillion is needed for carbon-neutrality by 2050. “Participating in CFP
emerging markets to derive two-thirds of their as a catalytic partner is in line with such mission
energy from renewable power by 2050. and we are pleased to contribute to the sustain-
The CFP was first conceived at the One Planet able development of developing countries and
Summit in September 2018 under the leadership provision of private capital to low-carbon invest-
of French President Emmanuel Macron. ment opportunities,” says Maeda.
The governments of France, Germany and Institutional investors Dai-ichi Life Insur-
Japan have committed initial ‘catalytic’ capital, ance, Standard Chartered Bank and MUFG
through public bodies the French Development Bank have been among the first private investors
Agency (AFD), KfW Development Bank (KfW) to commit capital. The partnership’s first close
and Japan Bank for International Cooperation has secured half of the its $500mn target.
(JBIC) respectively. Seiji Inagaki, president and representative
Together with Grantham Environmental director of Dai-ichi Life Insurance, said: “As
Trust, the Quadrivium Foundation, and another an institutional investor, Dai-ichi Life aims to
private foundation, the consortium have com- achieve zero carbon by 2050. We actively pur-
mitted a combined $112.5mn in catalytic capital. sue climate-related opportunities by investing in
“We are honoured to collaborate with this and financing projects such as renewable power
group of like-minded organisations from the to create positive impacts. We believe CFP will
public and private sectors to raise initial capi- greatly contribute to solving various issues in
tal that will be used to help unlock the energy emerging countries such as decarbonisation, and
transition in emerging markets through the Cli- we are pleased to invest in this fund.”
mate Finance Partnership,” said Edwin Conway, CFP is targeting climate infrastructure invest-
global head of BlackRock Alternative Investors. ments in select countries in Asia, Latin America
Rémy Rioux, CEO of the AFD, says that the and Africa.
unique challenges posed by climate change call Investments will cover grid-connected and
for “stronger joint action, public and private”. distributed renewable power generation; energy
“This ambitious partnership, forged with efficiency in residential, commercial and indus-
Germany, Japan and leading global founda- trial sectors; transmission or energy storage
tions, will help redirect financial flows toward solutions; and ultra-low emission or electrified
sustainable development investments across transportation and mobility services. ™
the emerging world, with a priority to Africa as

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