Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

BlackRock, partners eye initial $500 million for climate fund

Stock MarketsJan 22, 2020 05:32AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. The BlackRock logo is seen outside of its offices in New York

By Simon Jessop and Sinead Cruise

LONDON (Reuters) - A BlackRock-backed (N:BLK) group aims to raise an initial $500 million for a private equity fund that will invest in climate change-linked infrastructure upgrades in emerging markets.

The group will provide the first $100 million of funding for the Climate Finance Partnership (CFP), which was set up in 2018 along with France, Germany and the Hewlett and Grantham charitable foundations, it said in a statement on Wednesday.

The funding will go toward a first-loss tranche that will absorb any initial losses, a safety net for other institutional investors that BlackRock expects to help it raise at least another $400 million.

The CFP fund will be invested in renewable energy, energy efficiency, energy storage solutions and ultra-low and electric transport. At least a quarter of the investments would be made in Africa, with the rest in selected countries in Southeast Asia and Latin America, BlackRock said.

The venture is part of a wide-ranging overhaul of the way BlackRock, the world's biggest asset manager, is responding to the issue of climate change, as part of a broader commitment to environmental, social and governance-related investing.

Climate has also been at the forefront of this year's annual World Economic Forum in Davos, Switzerland, at which news of the planned initial fund-raising was announced.

Finding novel ways to encourage accelerated investments has been a theme at Davos, and on Wednesday a separate $500 million United Nations-backed initiative also announced a plan to help achieve the UN's Sustainable Development Goals, 'SDG500'.

The money raised will target businesses in the agriculture, finance, energy, education and healthcare sectors across many of the regions worst-hit by climate change.

As with the CFP fund, the coalition of private and public sector organizations will also provide a first-loss layer for those investing in the project, which will provide exposure to six funds managed by asset manager Bamboo Partners.

In a recent annual letter to the thousands of companies in which BlackRock holds stakes, Chief Executive Officer Larry Fink said the need to act on climate was "particularly urgent" given many cities were not built to withstand "the new climate reality".

France and Germany will both invest $30 million of the initial funding, while the William and Flora Hewlett Foundation and the Jeremy and Hannelore Grantham Environmental Trust have pledged $10 million and $7.5 million, respectively.

The CFP members have pledged to help raise the additional seed capital for the fund. BlackRock will also provide an as yet undetermined amount.

(This story corrects "BlackRock" to "Group" in second bullet point; fixes typo in final paragraph)

BlackRock, partners eye initial $500 million for climate fund

Related Articles

Swiss pumpmaker Sulzer to sell Russia business
Swiss pumpmaker Sulzer to sell Russia business By Reuters - May 24, 2022

ZURICH (Reuters) - Swiss engineering group Sulzer has put its Russia business up for sale, joining the exit from the market hit by Western sanctions over Moscow's invasion of...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email