BlackRock (NYSE:BLK) Inc has raised US$673mln for a climate-focused fund to invest in infrastructure projects in emerging economies, beating the US$500mln initial target.
The US asset manager received backing from the French, German and Japanese governments, Reuters reported, and philanthropic institutions such as the Grantham Environmental Trust and the Quadrivium Foundation. They will provide 20% of the capital.
The ‘Climate Finance Partnership’ (CFP) will be unveiled on Tuesday as part of an effort to help decarbonise developing countries.
CFP investments will be targeted toward Asia, Latin America, and Africa on projects such as clean power 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.
These areas of the world will need US$1 trillion a year over the next three decades to transition to a low-carbon economy, but only US$150bn were invested last year excluding China.