Temasek, BlackRock partner to invest in carbon-reducing tech

By Kate Birch
Investment giants Temasek and BlackRock launch Decarbonisation Partners, to invest in next-gen firms and technologies to advance decarbonisation solutions

Singapore state investor Temasek and the world’s largest asset manager BlackRock have announced the establishment of Decarbonisation Partners, a funding initiative focused on investments that advance decarbonisation solutions.

Together, as part of this historic investment opportunity, the two investment giants have committed US$600m in initial capital to invest in companies with proven products and technologies that will reduce, and potentially eliminate, carbon emissions.

This collaboration is part of both organisation’s commitment to supporting the goal of net zero carbon emissions by 2050 and a shared belief that climate transition presents a significant investment opportunity.

“The world cannot meet its net zero ambitions without transformational innovation,” says Larry Fink, Chariman and CEO of BlackRock. “For decarbonisation solutions and technologies to transform our economy, the 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.”

The partnership will seek to make investments in 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, resources efficiencies, and material and process innovation.

The partnership plans to raise third-party capital from investors who are committed to achieving a net zero world while also seeking to obtain long-term sustainable financial returns. As well as their own company experts, the Decarbonisation Partners will bring together scientists, technologist and thought leaders in the sustainability space.

This initiative follows BlackRock’s collaboration last month with other asset managers pledging to put pressure on firms in the their portfolios to net zerio carbon emissions by 2050.

“Our investment offerings, spanning renewable power to sustainable ETFs are helping accelerate the transition to net zero,” says Fink. “This partnership offers the next step in our offerings”.

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