Two of the world’s biggest and wealthiest investment companies are teaming up to back startups working on climate change solutions.
The $9 trillion financial management firm Blackrock and the $313 billion Singapore investment firm Temasek are searching for companies that will deliver solutions to enable the world to reach a zero-emission economy by 2050.
The duo have created a fund, Decarbonization Partners, and are backing it to the tune of $600 million. They are also looking for $1 billion overall for the first fund.
The companies haven’t gone into details about the type of companies they will fund, although the clients of Breakthrough Energy, which is backed by a group of billionaires led by Bill Gates might provide some clues. That group focuses on emerging energy sources, building and manufacturing technologies and material science and process innovations.
The partnership might also create another source of finance for alternative protein companies. Indeed Temasek has some experience in this space as it is one of the key investors in Impossible Foods.
Dilhan Pillay, chief executive officer of Temasek International said; “Bold, aggressive actions are needed to make the global net zero ambition a reality. Decarbonization 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. 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.”
“The world cannot meet its net zero ambitions without transformational innovation,” added Larry Fink, chairman and CEO of BlackRock.“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. 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.”