Governments and philanthropies announce ground-breaking partnership with BlackRock to mobilize and deploy climate finance at scale
New York – 26 September 2018 – France, Germany, the Hewlett, Grantham and IKEA foundations, and asset manager BlackRock today announced the Climate Finance Partnership at the One Planet Summit in New York. The Climate Finance Partnership is an unprecedented cooperation between philanthropies, governments and private investors, which have committed to jointly developing an investment vehicle that will aim to invest in climate infrastructure in emerging markets (see the Climate Finance Partnership Statement in the annex below).
The partnership will seek to make investments in a targeted set of sectors including renewable energy, energy efficiency, energy storage, and low-carbon and electrified transportation, across three regions including Latin America, Asia, and Africa.
The Climate Finance Partnership was inspired by the leadership of French President Emmanuel Macron and coordinated with the support of the Task Force on Philanthropic Innovation, launched at the One Planet Summit in Paris in December 2017, and the investment advisory group Aligned Intermediary.
BlackRock will work with members of the Partnership to design a structure that uses catalytic capital provided by the Partnership members – France’s development agency AFD and the German Ministry for the Environment, as well as the William and Flora Hewlett Foundation, the Jeremy and Hannelore Grantham Environmental Trust and the IKEA Foundation – to mobilize and deploy a multiple of institutional capital to mainstream climate infrastructure.
Featuring an innovative blend of philanthropic, government, and private sector capital, the Partnership will showcase the power and catalytic role of philanthropic and public capital to facilitate top-tier institutional capital investment into climate-related sectors in emerging markets.
The signatories of the Climate Finance Partnership Statement commit to collaborating diligently with a goal of finalizing the terms and structure of this ground-breaking investment partnership by the first quarter 2019.
Below please find quotes from members and stakeholders of the Climate Finance Partnership:
Rémy Rioux, CEO of Agence Française de Développement (AFD), said:
“AFD is pleased to be part of this innovative partnership to combat climate change. Development Finance Institutions like AFD must leverage private investment for climate in the developing world, in priority in Africa. This partnership, with governments, philanthropies and private investors, represents a critical step in this process”.
State Secretary Jochen Flasbarth from the German Ministry for the Environment, said:
“The Paris Agreement requires us to align finance flows in support for a low carbon and climate resilient development. Investments of institutional investors are a huge potential funding resource. This new collaboration offers an exciting opportunity we are glad to support.”
Larry Kramer, president of the William and Flora Hewlett Foundation, said:
“Climate change is an enormous threat, and we need to start implementing solutions now to save lives, to safeguard our future, and to secure the work we do in virtually every other area of our philanthropic work. Mobilizing institutional capital is a key part of the solution, and we are proud to be a partner in the Climate Finance Partnership to test new mechanisms to move capital at the necessary scale.”
Laurence Tubiana, CEO of the European Climate Foundation and director of the Task Force, said:
“The spirit of the Paris Agreement is all actors – from governments to businesses to philanthropies to citizens – coming together to combine and align their efforts towards our common goal of preventing dangerous climate change. This is the rationale behind the philanthropy task force launched at the initiative of President Macron. This Partnership represents a major step in that direction, bringing together innovative partnerships to amplify impact.”
Jim Barry, Global Head of BlackRock Real Assets, said:
“Creative collaboration is key to advancing low-carbon infrastructure projects in emerging economies, and BlackRock Real Assets is honored to work with the Climate Finance Partnership to work to mobilize private capital for these important projects. BlackRock has helped clients seize opportunities in the global energy transition since 2011. Now, as one of the largest managers of renewable infrastructure assets in the world, we believe this initiative marks an important step forward in the advancement of low carbon investing worldwide.”
John E. Morton, Senior Advisor to the Task Force on Philanthropic Innovation and to Aligned Intermediary:
“The goal of the Climate Finance Partnership is to provide a strong and compelling example of how private capital can and should be mobilized into climate related investment opportunities in emerging markets that represent an enormous economic opportunity.
This effort will help to expedite the mobilization of private capital to address the climate challenge, and invest in the significant economic opportunities embedded in the transition to a global low carbon economy.”
- US: Bridgette Burkholder – firstname.lastname@example.org
- EU: Benjamin Jullien – email@example.com
Note to editors:
Please find the Climate Finance Partnership Statement and the list of signatories below.
About the philanthropies
- The Hewlett Foundation – www.hewlett.org
- The Jeremy and Hannelore Grantham Environmental Trust – www.granthamtrust.org
The Jeremy and Hannelore Grantham Environmental Trust was formed in 2005 by Jeremy Grantham, Co-Founder and Chief Investment Strategist of Grantham, Mayo, Van Otterloo (GMO) and his wife Hannelore. GMO currently manages approximately $80 billion in a variety of strategies for institutional investors. The Trust is a 501(c)(3) public charity and a Type II 509(a)(2) supporting organization that supports charities whose mission is environmental protection. Its endowment is approximately $250 million and its trustees include representatives from The Nature Conservancy, The World Wildlife Fund-US and Rare in addition to Jeremy and Hannelore Grantham
- The IKEA Foundation – www.ikeafoundation.org
BlackRock helps investors build better financial futures. As a fiduciary to our clients, we provide the investment and technology solutions they need when planning for their most important goals. As of June 30, 2018, the firm managed approximately $6.3 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com | Twitter: @blackrock | Blog: www.blackrockblog.com | LinkedIn: linkedin.com/company/blackrock/.
About the Task Force on Philanthropic Innovation:
The Task Force on philanthropic innovation was formed during the One Planet Summit in December 2017. The Task Force is a coalition of 16 philanthropies and 4 governments with a shared commitment to exploring innovative solutions to accelerate the implementation of the Paris Agreement. The members operate through four working groups to make progress on distinct focus areas: Blended Finance; Renewable Energy in South East Asia ; Air Quality; and Agriculture, Land Use and Adaptation.
Task Force contact: Ida Kenny – Ida.firstname.lastname@example.org
Climate Finance Partnership Statement
We, the undersigned, recognizing the need to significantly expedite the mobilization of private capital to address the climate challenge, and invest in the significant economic opportunities embedded in the transition to a global low carbon economy, do hereby announce our commitment to establish an innovative partnership structure – the Climate Finance Partnership – that seeks to raise and deploy institutional capital to mainstream climate infrastructure in emerging markets, and accelerate the global power and energy transition.
The Climate Finance Partnership is inspired by the leadership of French President Emmanuel Macron and coordinated with the support of the Task Force on Philanthropic Innovation, which was launched by the President at the One Planet Summit in Paris in December 2017, and Aligned Intermediary.
The Partnership will feature a unique blend of philanthropic, government, and private sector capital, and it will showcase the power and catalytic role of philanthropic and public capital to facilitate top-tier institutional capital investment into climate-related sectors in emerging markets.
We confirm that philanthropic and government entities in the Partnership, including those listed below, will seek to make a major strategic, catalytic investment of capital in a way that will be used to strategically mobilize a multiple amount of institutional capital commitments toward solving the climate problem.
We confirm that BlackRock will work with members of the Partnership to design a structure that aims to significantly expand the flow of institutional capital focused on the long-term theme of climate infrastructure investment. BlackRock will seek to manage the assets raised by this Partnership, as part of the firm’s commitment to extend its Renewable Power platform – which has already invested $5 billion in over 190 wind and solar projects – accelerating capital to climate infrastructure and the global energy transition.
The partnership will seek to make investments in a targeted set of sectors including renewable energy, energy efficiency, energy storage, and low-carbon and electrified transportation, across countries in three regions including Latin America, Asia, and Africa.
We, the undersigned, commit to collaborating diligently with a goal of finalizing the terms and structure of this exciting new investment partnership by the first quarter 2019.
Agence Française de Développement
Federal Ministry for the Environment, Nature Conservation and Nuclear Safety of Germany
The William and Flora Hewlett Foundation
The Grantham Foundation for the Protection of the Environment
The IKEA Foundation