Temasek and BlackRock have teamed up to launch a $1bn (£730m) decarbonisation investment platform in a bid to accelerate global efforts to reach net zero carbon by 2050.
The two global investors have agreed to commit $600m of initial capital into the new Decarbonization Partners business, which will be invested in multiple funds. The funds will also raise third-party capital from investors that are committed to achieving a net zero world while also seeking to obtain long-term sustainable financial returns.
BlackRock chairman and chief executive Larry Fink said: “The world cannot meet its net zero ambitions without transformational innovation. For decarbonisation solutions and technologies to transform our economy, they need to be scaled. To do that, they need patient, well-managed capital to support their vital goals. This partnership will help define climate solutions as a stand-alone asset class that is both essential to our collective mission and a historic investment opportunity created by the net zero transition.”
Dilhan Pillay, chief executive of Temasek International, said: “Bold, aggressive actions are needed to make the global net zero ambition a reality. Decarbonization Partners represents one of several steps we are taking to follow through on our commitment to halve the emissions from our portfolio by 2030, and ultimately move to net zero emissions by 2050.
“Through collective efforts with like-minded partners, we will be able to create sustainable value for all of our stakeholders over the long term, and investors will have the opportunity to help deliver innovative solutions at scale to address climate challenges.”
The pair said the new firm’s funds would focus on early stage growth companies targeting proven, next-generation renewable and mobility technology, including emerging fuel sources, grid solutions, battery storage, and electric and autonomous vehicle technologies, as well as in-building and manufacturing sectors to drive decarbonisation, resource efficiencies, and material and process innovation.
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