New Delhi: BlackRock, the world’s largest asset manager, has announced plans to raise up to $7 billion for its fourth Global Renewable Power Fund. The fund aims to support climate-friendly investments and will primarily focus on projects in Organisation for Economic Co-operation and Development (OECD) countries. In addition to wind and solar energy, the fund will also explore opportunities in other clean technologies, such as batteries and grid infrastructure.
The growing demand for investments in renewable energy projects is driven by institutional investors seeking to align their portfolios with the global transition to a low-carbon economy. BlackRock’s Global Head of Climate Infrastructure, David Giordano, highlighted the increasing interest in pension schemes, as they are attracted to assets that match their long-term liabilities.
Despite some opposition from U.S. Republicans against climate-driven constraints on fossil fuel companies, Giordano emphasized the strong commitment of institutional investors to infrastructure investments that encompass both present and future needs.
BlackRock aims to secure between $5 billion and $7 billion for its fourth fund, surpassing the $4.8 billion raised for its previous fund, which closed in April 2021. The company’s ambitious fundraising goals reflect the urgent need for increased investment in clean energy to achieve the net-zero emissions target by 2050. According to the International Energy Agency, annual clean energy investment must more than triple to $4 trillion by the end of the decade to meet this goal.
The third fund made notable investments, including one in IONITY, a high-power charging network that raised 700 million euros in November. It also backed the Waratah Super Battery in Australia, set to become the world’s largest grid-scale battery.
BlackRock plans to distribute its investments evenly across Europe, the Americas, and Asia, with each region receiving approximately one-third of the fund’s allocation. The exact investment targets within these regions have not been determined yet.
Depending on the total funds raised, the fourth fund is expected to make around 18-22 investments across a mix of early-stage and developed renewable energy projects. Co-investment opportunities may also be considered to maximize the impact and scale of the fund’s investments.