Investment company Temasek has partnered with BlackRock to invest in next-generation net zero solutions, such as renewable energy technologies.
The Decarbonisation Investment Partnership will see the companies launch a series of late stage venture capital and early growth private equity investment funds, with a combined initial commitment of US$600 million (£437 million).
Both companies will also raise third-party capital from investors as part of the partnership, with a goal of US$1 billion (£729 million) for its first fund, including the capital from Temasek and BlackRock.
“The world cannot meet its net zero ambitions without transformational innovation,” said Larry Fink, chairman and CEO of BlackRock, adding that for these solutions to transform the economy, they need to be scaled up.
“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 Decarbonisation Partners will focus on early stage growth companies, targeting proven, next-generation renewable and mobility technology. This includes grid solutions, battery storage and electric vehicles, as well as sectors such as building and manufacturing.
Employees from both firms will staff the funds, leveraging expertise in sourcing and underwriting private investments, portfolio and risk management from both.
“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,” added Dilhan Pillay, CEO of Temasek International.
He added that the partnership was one of several steps the company is taking to halve the emissions from its portfolio by 2030, before becoming net zero by 2050.