On Tuesday, Temasek Holdings and asset manager BlackRock has come together for investing in private companies which makes use of the technology for reducing the carbon emission.
Well, the partnership is to as the Decarburization Partners which will be launching a series of late-stage venture capital and earlier growth of the private equity investment funds as per the two companies.
BlackRock and Temasek together planned to make an investment of $600 million in initial capital to invest across the funds which might raise money from the third-party investors. Notably, the first fund has a target of $1 billion and this will involve capital from both companies.
Larry Fink, chairman and CEO of BlackRock, said in a joint statement, “The world cannot meet its net zero ambitions without transformational innovation.”
Fink also mentioned, “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.”
Fink mentioned that partnership helped in defining the climatic solutions as a standalone asset class which is necessary for the two companies’ together mission, as well as it is referred to as a historic investment opportunity which is crafted by the net-zero transitions.
One of the world’s largest money managers, BlackRock is boosting the companies to disclose how to persist in a world of net-zero greenhouse gas emissions.
In the annual letter to CEOs this year, Fink mentioned that better disclosures regarding sustainability which is the best interest of the companies and also investors.
As a top global investor, Temasek has now committed to halving emissions by 2030. Eventually, the company plans to move to net-zero emission almost by 2050.
CEO of Temasek International, Dilhan Pillay said, “Bold, aggressive actions are needed to make the global net zero ambition a reality. 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.”
Moreover, the Decarbonization Partners funds will be invested in the early-stage growth companies in the fields like electric and autonomous, vehicle technologies, grid solution, battery storage, and emergent fuel sources.
Notably, the funds will be staffed by the employees from Temasek and BlackRock along with a professional team involved in source and undertook investments and managed the set.