07/09/2021 | Press release | Distributed by Public on 07/09/2021 17:00
The newly launched Climate Finance Partnership Fund (CFPF), in which KfW is a partner, has mobilized USD 250 million for climate-friendly investments in developing and emerging countries as a first step. The fund aims to raise a total of USD 500 million for energy projects in Asia, Central and South America and Africa by summer 2022. The CFP's partners to date are ten state and private investors, including companies, governments and foundations. They include KfW with commitments of USD 30 million, the French development bank AFD and the Japan Bank for International Cooperation.
The network of institutional investors, initiated by U.S. asset manager BlackRock, is expected to mobilize above-average leverage of private climate finance. To date, BlackRock has already raised funds of USD 140 million from private investors. These include Mitsubishi, Japan's Dai-ichi Insurance, Standard Chartered Bank and a leading European pension fund.
The Climate Finance Partnership concept was developed at the One Planet Summit in France in September 2018 and is a joint project of the German government, France, several foundations and BlackRock.
According to estimates, global energy demand will double by 2050. Approximately USD nine trillion in investments will be needed to ensure that two-thirds of the demand can be met by renewable energies. To achieve this, in addition to government funding, more private capital must flow into poorer countries that are particularly affected by climate change. The Climate Finance Partnership primarily supports the expansion of wind and hydropower as well as solar energy in developing and emerging countries.