BlackRock has raised $673m (€582m) for a climate infrastructure investment fund seeking to cut carbon emissions in emerging markets.

The manager said the fundraise for the Climate Finance Partnership (CFP) fund, which exceeded its $500m target, was backed by a global consortium of 22 investors including governments, philanthropies and institutional investors. BlackRock committed $20m to CFP.

BlackRock said CFP received $130m in catalytic capital raised from the governments of France, through the French Development Agency; Germany, through KfW Development Bank; and Japan, through Japan Bank for International Cooperation; together with the Grantham Environmental Trust, the Quadrivium Foundation, and another private foundation; and energy firm TotalEnergies.

The catalytic capital seeks to insulate investment risks for institutional investors in the fund and was used to mobilise a broader institutional fundraise totalling $523m from investors including AXIS Capital, AP2, AXA, Dai-ichi Life Insurance, E.ON, Finnish Church Pension Fund, Mitsubishi UFJ Morgan Stanley, Mizuho Bank, MUFG Bank, the Richter Family Office, Standard Chartered Bank, Sumitomo Life, and a leading European pension fund, the manager said. 

Philipp Hildebrand, vice chairman of BlackRock, said: “This innovative structure, in which each dollar of catalytic funding from public development banks and philanthropy has attracted four dollars of institutional capital, shows the power of public-private innovation in driving clean energy in emerging Asia, Latin America and Africa.”

Larry Fink, chairman and CEO of BlackRock, said: “Achieving a just transition to a net-zero economy by 2050 requires long-term planning and close coordination between the public and private sectors.

“This partnership is proof that governments, philanthropic organisations, and institutional investors can come together to mobilise capital at scale into emerging markets, which are most exposed to the impact of climate change.”

CFP will target investments in select non-OECD countries in Asia, Latin America, and Africa.

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