BlackRock Seeks Green Investments in Mexico

BlackRock is pouring efforts in infrastructure and clean energy projects in Mexico, such as solar parks, as the company has deployed an investigation team to the country to search for possible investments. BlackRock’s recent investments in emerging markets are part of its strategy to diversify portfolios and provide the best investment opportunities. 

Axel Christensen, Director of Investment Strategy Latin America, BlackRock, explained at Bloomberg’s Capital Markets Forum 2022 that BlackRock has major interest in Mexico. Christensen told El Sol de Mexico of the creation of a research team for the country that constantly seeks viable projects. 

"We are clearly interested. The opportunity for Mexico lies in the climate transition. It is looking at where to put solar parks. There is a diversity of segments associated with energy infrastructure aimed at increasing the country's productivity," said Christensen. 

At the forum, investors agreed that injecting capital for infrastructure works, education and energy would help Mexico’s growth. Most experts agreed that Mexico is the best positioned emerging country to face current global threats.  

“Emerging markets (EM) have been used as a vehicle to diversify exposures from traditional developed markets. EM tend to contain developing countries with higher sensitivity – to sectors such as manufacturing – and tend to be negatively correlated with dollar strength. Today, they represent around 59 percent of the population and 40 percent of world economic production; they are a relevant component in all portfolios,” explains BlackRock on its website. 

Emilio Romano, President, Bank of America (BoFA), explained that Mexico faces an obstacle in the energy industry. Romano said that energy demand will require an investment of 25 percent of the Gross Domestic Product (GDP) in the next eight years.

BlackRock explained that investment in emerging countries is vital for portfolios: “the dispersion of performance also speaks in favor of the diversification of the countries.” BlackRock also explained that the company measures stock market correlations by the MSCI ACWI index countries, which increased throughout the first two weeks of March. However, a fallout caused by the global financial crisis led to low levels in comparison to previous months.