BlackRock Raises $673 million for Climate Infrastructure Across Emerging Markets
NEW YORK – BlackRock managed to raise $673 million for the Climate Finance Partnership to speed up the global transition to a net-zero economy.
At least 22 investors, ranging from government officials, philanthropists, and various investors, contributed to the overall cash donated to the partnership. The global partnership of investors contributed and eventually exceeded its target of $500 million.
However, this material amount is insignificant to the overall goal in climate infrastructure across emerging markets. According to the BlackRock Investment Institute, the world would need to invest at least $1 trillion in low-carbon projects to begin a net-zero global economy.
This amount is far from the accumulated cash in 2020. The partnership only managed to accumulate $150 billion to invest in decarbonization.
Fortunately, numerous private corporations heeded the call by mobilizing significant investments in climate infrastructure for attractive risk-adjusted returns.
The Climate Finance Partnership’s capital primarily comes from France, Germany, and Japan. Some companies participating in the partnership are the Grantham Environmental Trust, the Quadrivium Foundation, and other private institutions.
According to BlackRock CEO and Chairman Larry Fink, the partnership would need to collaborate with public and private sectors to reach the net-zero economy by 2050. More importantly, this goal would require long-term planning and cohesive collaboration.
According to Fink, this partnership “is proof that governments, philanthropic organizations, and institutional investors can come together to mobilize capital at scale into emerging markets, which are most exposed to the impact of climate change.”