BlackRock has announced the launch of a $2 billion climate transition fund dedicated exclusively to financing decarbonisation and clean energy infrastructure projects in emerging market economies.
The fund, developed in partnership with several sovereign wealth funds and development finance institutions, will target investments across renewable energy generation, grid modernisation, sustainable transportation, and industrial efficiency improvements in markets across Asia, Africa, and Latin America.
"The climate transition cannot succeed without massive capital deployment in the emerging world," said BlackRock's Head of Sustainable Investing. "This fund addresses the critical financing gap that exists between developed market climate commitments and emerging market infrastructure needs."
Initial commitments have been secured from the Abu Dhabi Investment Authority, Singapore's GIC, and the International Finance Corporation, with additional institutional investors expected to participate in a second close.