BlackRock-backed private equity fund plans to raise 500 million USD for investment in climate-related infrastructure in emerging economies. The asset manager will provide the first 100 million USD in funding for the Climate Finance Partnership (CFP), created in 2018 by France, Germany and the Hewlett and Grantham Charitable Foundation.

Funding from BlackRock will go towards a “first-loss tranche” that will absorb all of the initial losses – a precautionary measure for other potential investors who can help them to fundraise another 400 million USD.

The Climate Finance Partnership (CFP) will focus on renewable energy, energy efficiency, energy storage, and electricity solutions. At least a quarter of the investment is planned to flow into countries in Africa and the rest to countries in Southeast Asia and Latin America.

The initiative is part of a major restructuring initiated by BlackRock that is associated with all assets in which the manager has a stake or control. Changing BlackRock’s focus from fossil fuels to stimulating clean energy investments through investment, also changes the social attitudes about climate change and increasing business and public engagement on these issues.

Earlier this month, BlackRock CEO Laurence Fink sent a letter to top executives of companies in which the company has a stake, urging them to become more involved in climate and environmental protection.

France and Germany will invest 30 million USD in initial fundraising, while the Hewlett and Grantham Foundation and the Jeremy and Hannelore Grantham Environmental Trust will provide 10 million USD and 7.5 million USD, respectively.

CFP members have pledged to help raise additional capital.