Network TodayNetwork Today
    What's Hot

    Explosion at a Catholic Mass in the Philippines Kills at Least 4 and Injures Dozens

    December 3, 2023

    DeSantis says conservatives won’t be ‘gaslit’ by ‘people who think we’re dumb’ after Newsom debate

    December 3, 2023

    Joint Chiefs chairman says ‘we all should be’ worried about China possibly invading Taiwan

    December 3, 2023
    Facebook Twitter Instagram
    • About
    • Privacy Policy
    • Terms
    • Contact
    Facebook Twitter Instagram
    Sunday, December 3
    Network TodayNetwork Today
    • Home
    • News
    • Politics
    • Business
    • Energy
    • Technology
    • Health
    • Lifestyle
    • Sports
    Network TodayNetwork Today
    Home » New BlackRock strategy to pursue energy transition and security

    New BlackRock strategy to pursue energy transition and security

    June 16, 20223 Mins Read Energy
    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email Reddit
    Share
    Facebook Twitter LinkedIn Pinterest Email

    BlackRock is launching a new infrastructure investment programme focused on energy security and helping polluting companies to become greener as the world’s largest money manager adjusts to new demands on climate change.

    The perpetual capital strategy due to be unveiled on Thursday will start with money in the “single-digit billions” from a few cornerstone investors, BlackRock said, with plans to grow it significantly.

    More than half of the early investments will focus on Europe, after the Ukraine war drove up energy prices and sparked new investor interest in funding alternatives to Russian oil and natural gas. BlackRock had initially planned 35 to 40 per cent of its investments in Europe, executives said.

    The announcement comes as BlackRock been highlighting its view that climate-focused investors must go beyond green investments and help heavy industry and energy groups to reduce their carbon footprints.

    “When inflation is high, you can’t shut off fossil fuel today and turn on renewable power tomorrow. There [aren’t] enough projects,” said Edwin Conway, head of BlackRock’s alternative investments. “Our intention is actually to work with these large energy companies. They’re huge employers of human capital . . . they too are looking to the future.”

    BlackRock has become a target of US conservatives who criticise what they describe as “woke capitalism,” including the environmental, social and governance investing trend. Republicans have specifically cited BlackRock founder Larry Fink’s letters to companies urging them to address climate change and its past votes in favour of shareholder proposals on the subject.

    West Virginia’s government this week warned BlackRock and five major banks that it plans to stop doing business with them unless they can show they are “not engaged in a boycott of energy companies”, as directed by new state legislation. Texas has also been seeking similar pledges.

    BlackRock declined to comment on the West Virginia warning. The money manager recently announced that it would be voting against more shareholder proposals on climate this year because many of them had become “too prescriptive”. Fink said recently, “I don’t want to become the environmental police.”

    The perpetual infrastructure offering is being pitched to long-term investors as a source of stable returns and a hedge against inflation. Plunging US stock markets have exacerbated concerns that many technology and renewable companies are overvalued.

    “A few years ago, everyone was very focused on ‘let’s build more renewables’,” said Anne Valentine Andrews, who heads BlackRock global real assets. Now, “Everyone’s realised that renewables are incredibly important . . . but we can’t get there without decarbonising all of these other harder-to-abate segments.”

    The team plans to work with large companies to fund investments in areas such as carbon capture and storage, battery technology, hydrogen and natural gas storage and transport, as well as making transportation more sustainable.

    Recommended

    BlackRock’s new strategy is effectively a joint venture between its renewable and infrastructure investors, Valentine Andrews said. It differs from private equity-style funds, which raise a fixed amount for a fixed period of time and pay profits at the end. Aimed at insurers, pension funds and other institutional investors who need steady payments, it aims to produce regular income and allow investors to come in and out.

    “We have the whole backdrop of people wanting stable income, inflation protection, diversification and the whole sustainability alignment right now,” Valentine Andrews said. “This is something that we think is going to really meet the needs of our investors.”

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Thames Water faces prospect of fresh parliamentary inquiry into finances

    December 2, 2023

    Fossil fuel companies sign up to emissions reduction pact at UN climate conference

    December 2, 2023

    UN climate talks focus too much on renewable energy, ExxonMobil chief says

    December 2, 2023

    COP28: Five things to take from world leaders at the climate talks

    December 1, 2023

    UAE COP28 guest list led by bankers, lobbyists — and housekeeping

    December 1, 2023

    Poland’s incoming coalition faces early test with energy bill

    December 1, 2023
    Trending

    Explosion at a Catholic Mass in the Philippines Kills at Least 4 and Injures Dozens

    December 3, 2023

    DeSantis says conservatives won’t be ‘gaslit’ by ‘people who think we’re dumb’ after Newsom debate

    December 3, 2023

    Joint Chiefs chairman says ‘we all should be’ worried about China possibly invading Taiwan

    December 3, 2023

    Upheaval Continues at DeSantis Super PAC as Another Top Official Departs

    December 3, 2023
    Latest News

    Multi-party coalition criticizes Egyptian government in rare show of dissent

    August 29, 2023

    Sen Cruz leads push to reintroduce ‘Kate’s Law’ to jail repeat illegal immigrants

    June 21, 2023

    A Massachusetts Man Is Infected With Monkeypox

    May 18, 2022

    Review: A Drowsy Night at ‘Grief Hotel’

    June 28, 2023

    Oil and gas majors: time for a transformative clean energy deal?

    July 27, 2022

    Six St. Louis inmates charged for allegedly abducting 73-year-old jail guard before SWAT team rescue

    August 29, 2023

    Network Today is one of the biggest English news portal, we provide the latest news from all around the world.

    We're social. Connect with us:

    Facebook Twitter Instagram Pinterest YouTube
    Recent

    Explosion at a Catholic Mass in the Philippines Kills at Least 4 and Injures Dozens

    December 3, 2023

    DeSantis says conservatives won’t be ‘gaslit’ by ‘people who think we’re dumb’ after Newsom debate

    December 3, 2023

    Joint Chiefs chairman says ‘we all should be’ worried about China possibly invading Taiwan

    December 3, 2023
    Featured

    Wagner chief says he’s turning Russian convict fighters destined for Ukraine into ‘cannibals’

    January 31, 2023

    China’s Young People Can’t Find Jobs. Xi Jinping Says to ‘Eat Bitterness.’

    May 30, 2023

    Croatian MiG-21 military jet crashes during training flight

    December 6, 2022
    Copyright ©️ All rights reserved | Network Today
    • About
    • Privacy Policy
    • Terms
    • Contact

    Type above and press Enter to search. Press Esc to cancel.