BlackRock, Temasek launch decarbonisation fund platform

Alessia Argentieri
14 April 2021

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BlackRock and Temasek have established Decarbonization Partners, a platform to launch a series of venture capital and growth private equity funds focused on reducing carbon emissions.

BlackRock and Temasek intend to commit a combined $600m in initial capital to invest in multiple funds launched by the partnership. The funds will also raise third-party capital from other investors.

Decarbonization Partners has a fundraising target of $1bn for its first fund, including the capital from Temasek and BlackRock.

The funds will primarily target early-stage growth companies developing resource efficiencies, material and process innovation, renewable energy, and transport technology, including emerging fuel sources, grid solutions, battery storage, and electric and autonomous vehicles.

The funds will be staffed by employees from both firms, as well as a professional and dedicated team recruited to source and undertake investments and manage the portfolio.

The partnership aims at combining both firms' expertise in private markets to invest in companies and proven technologies that will accelerate global efforts to achieve a net zero economy by 2050.

"The world cannot meet its net zero ambitions without transformational innovation," said Larry Fink, chair and CEO of BlackRock. "For decarbonisation 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."