As investors increase their climate-friendly investments, BlackRock is aiming to raise up to $7 billion for its fourth Global Renewable Power Fund.

The fund, which is concentrated on projects in countries affiliated with the Organization for Economic Co-operation and Development, could invest in wind and solar power as well as other green technologies like batteries and grid infrastructure.

According to David Giordano, global head of climate infrastructure at BlackRock, institutional investors have become more eager to support these projects in recent years as more look to align their portfolios with the shift to a low-carbon economy.

The move has also been fueled by a rapidly shifting political landscape, with the European Union and the United States both introducing significant financial support for clean energy to aid in the reduction of carbon emissions to combat global warming.

Giordano went on to say that investors were now making a real effort to center their portfolio construction around the various infrastructure subsectors, citing rising demand from pension plans drawn to assets that match long-term liabilities.

According to him, the demand came amid some American Republicans opposing restrictions on fossil fuel companies due to the climate.

In light of the fact that its predecessor, which closed in April 2021, raised $4.8 billion, the company announced that it is aiming to raise between $5 billion and $7 billion for its fourth fund.

By the end of the decade, clean energy investment will need to more than triple to $4 trillion annually in order to achieve net-zero emissions by 2050, according to the International Energy Agency.