BlackRock-backed group unveils US$500m climate fund at Davos

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
The other side to Davos, Switzerland. Source: Active Steve, Flickr

A group that comprises BlackRock and the governments of France and Germany has committed to raising US$500 million for “climate-related investments” in emerging markets through a new fund.

The Climate Finance Group (CFP), which also counts the US' Hewlett and the UK's Grantham institutes, made the announcement on Wednesday, the second day of the World Economic Forum in Davos, Switzerland.

The fund's inaugural finance vehicle will feature a first-loss tranche of “at least” US$100 million in capital anchored by government and foundation partners that BlackRock will use to mobilise “at least” US$400 million in institutional capital commitments.

The venture comes less than a week after the world’s biggest asset manager acknowledged the impacts of climate change and said it would overhaul its investment strategy to make sustainability integral to its portfolio, starting with divestment from coal producers.

CFP investments will go towards grid-connected and distributed generation renewables; energy efficiency in residential, commercial and industrial sectors; energy storage solutions; and ultra-low emission or electrified transportation and mobility services. One-quarter of investments will be made in Africa and the rest to Southeast Asia and Latin America.

In a press release, the partners said the fund's blend of philanthropic, government, and private sector capital was “unique”.

The governments of France, through the French Development Agency, and Germany, with the KfW acting as a trustee, intend to contribute US$30 million each to the partnership. The William and Flora Hewlett Foundation and the Jeremy and Hannelore Grantham Environmental Trust have committed US$10 million and US$7.5 million respectively.

Climate action and global warming have taken centre stage at this year's annual conference at Davos, with Swedish climate activist Greta Thunburg staging yet another impassioned plea to business and political leaders to acknowledge the scale of the crisis and act. The International Energy Agency produced a report ahead of the conference calling on oil and gas majors to put their financial clout behind the energy transition.

Meanwhile, US President and climate sceptic Donald Trump dismissed concerns as “pessimism” and decried the “prophets of doom”.

Read Next

January 28, 2022
Greek industrial group Mytilineos said its renewables and storage unit continues with “full speed” to invest in solar and battery energy storage systems globally following a 2021 that saw the business expand its PV engineering, procurement and construction (EPC) operations.
January 28, 2022
Global investment in renewables rose to new heights in 2021 as solar and wind deployment surged, but total energy transition expenditure needs to triple in the coming years to get on track for net zero, according to new research from BloombergNEF.
January 27, 2022
Renewables owner and operator Brookfield Renewable has tripled its US development pipeline to 31GW through the US$650 million acquisition of clean power developer Urban Grid.
January 27, 2022
Tesla’s solar installations jumped 68% in 2021 to 345MW despite a slight dip in additions year-on-year during the fourth quarter.
January 25, 2022
Regulators in Nevada have paved the way for two solar-storage hybrid projects to replace a legacy coal power plant in the US state, approving their sale to utility NV Energy.
January 24, 2022
The year has gotten off to a frenetic start, with plenty of news from the global solar and energy storage sectors to digest on the January 2022 episode of the Solar Media Podcast.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal
Solar Media Events
April 25, 2022
Berlin, Germany