BlackRock plans a $7 billion Global Renewable Power Fund. As clients increase climate-friendly investments, BlackRock (BLK.N), the largest asset management, seeks to raise $7 billion for its fourth Global Renewable Power Fund.
The fund might invest in OECD countries’ wind, solar, batteries, and grid infrastructure.
BlackRock’s Global Head of Climate Infrastructure, David Giordano, told Reuters that institutional investors are increasingly backing such projects to connect their portfolios with the low-carbon economy.
The U.S. and E.U. have invested heavily in sustainable energy to combat global warming, fueling the move.
“You have folks now that are really trying to focus their portfolio construction around the different sub-sectors in infrastructure,” Giordano added, citing pension systems seeking assets that match long-term needs.
He added some U.S. Republicans oppose climate-driven fossil fuel company restrictions.
“I would say that the commitment of institutional investors to invest in the infrastructure of today and the infrastructure of the future is actually quite strong,” Giordano added.
After raising $4.8 billion for its predecessor, which closed in April 2021, the corporation is eyeing $5 billion to $7 billion for its fourth fund.
The International Energy Agency estimates that clean energy investment must increase to $4 trillion by 2050 to accomplish net-zero emissions.
In November, the third fund invested 700 million euros in the high-power charging network IONITY. It supported Australia’s Waratah Super Battery, the world’s largest grid-scale battery.
Although there are no targets, a third of the money would presumably be invested in Europe, the Americas, and Asia.
Giordano said the fund might make 18-22 investments in early-stage and established enterprises, including co-investments, depending on the amount raised.
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