BlackRock invests $2.5bn in renewables

Dec 9, 2019 11:25 AM ET
  • BlackRock, the global biggest fund managing company, has closed 1bn USD of a 2.5bn USD fund aimed at wind, solar and storage. However, this is only a small part of the financial giant’s 6.96tn USD balance and nothing in comparison with 17.5bn invested in coal projects.
BlackRock invests $2.5bn in renewables
Image: Pictures of Money, Flickr

The biggest global asset manager has closed 1,000m USD of the huge 2,500m USD fund for clean power development. Over 35 institutions from Asia, Europe and NA have committed to invest in the fund, which shows investors’ major interest in green energy assets. 

BlackRock’s green power portfolio is among the biggest around the globe. Over nine years, it has invested in over 250 solar and wind ventures. The assets under BR’s management constitute 5,500m USD.

According to the asset manager, during the following decades, the world is going to shift from 60% of fuel from fossil resources to 60% of renewables, which will put green power among the most developed infrastructure sectors and make it an especially attractive allocation for investors. 

At the same time, these 2,500m USD is just a small portion of BR’s 6,960bn USD balance and nothing in comparison with 17,500m it has invested fossil fuel. The fund manager is the top world’s investor in coal plant developers. Moreover, it holds the majority of shares in thermal coal, gas, and oil reserves.

BlackRock has been accused by ImpactAlpha of supporting eco-unfriendly industries. The Children's Investment Fund Management founder has called BR “full of greenwash“, as it is still investing into fossil energy via passive management. 

However, according to Financial Times, the asset manager has begun carefully analyzing its operations in terms of environmental impact, which concerns both passive and active investment.

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