BlackRock has set up a partnership with Singapore's government-owned investment arm Temasek to launch a series of massive late-stage venture capital and early-growth private equity investment funds to advance decarbonisation efforts on a global level.
As Decarbonization Partners, the two investors intend to commit a combined $600m in initial capital to invest in multiple funds launched by the partnership, and also raise third-party capital from investors committed to net zero.
Decarbonization Partners has a fundraising target of $1bn for its first fund, including capital from Temasek and BlackRock.
“The world cannot meet its net zero ambitions without transformational innovation,” said BlackRock chief executive Larry Fink.
“For decarbonisation solutions and technologies to transform our economy, they need to be scaled.”
The partnership will leverage both firms’ expertise in sourcing and underwriting private investments, portfolio and risk management, and sustainable technology and analytics. The funds will be staffed by employees from both companies, as well as a team recruited to source and undertake investments and manage its portfolio.
“Bold, aggressive actions are needed to make the global net zero ambition a reality,” said Temasek International CEO Dilhan Pillay.
“Decarbonisation 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.”