BlackRock and Temasek have agreed to launch a series of investment funds focused on advancing decarbonization solutions to accelerate global efforts to achieve net zero by 2050.
They intend to invest a combined $600 million in multiple funds launched by the partnership, which will be called Decarbonization Partners.
The funds will also raise third-party capital from investors while seeking to obtain long-term sustainable financial returns.
Decarbonization Partners has a fundraising target of $1 billion for its first fund, including capital from Temasek and BlackRock.
They said the partnership combined both firms’ expertise in private markets to invest in companies and proven technologies that will reduce and potentially eliminate carbon emissions.
The funds will be directed towards 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 decarbonization, resource efficiencies, and material and process innovation.
“The world cannot meet its net zero ambitions without transformational innovation,” said Larry Fink, Chairman and CEO of BlackRock.
“For decarbonization 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 standalone asset class that is both essential to our collective mission and a historic investment opportunity created by the net zero transition.”
“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,” said Dilhan Pillay, Chief Executive Officer of Temasek International, an investment company headquartered in Singapore.
“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.”