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.

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.

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. 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

Meet our Climate Finance Partnership team