Several companies are taking responsibility for doing whatever they can from their end to reduce carbon emissions. In this series, Singapore state investor Temasek Holdings has joined hands with asset manager BlackRock. They have named their partnership as Decarbonization Partners. They will invest in private companies that are making use of technologies for reducing carbon emissions. Both the companies will launch a series of early growth private equity investment funds. They will initiate a late-stage venture capital, they said in a joined statement. They have plans to commit around USD 600 million jointly in initial capital to invest across the funds. The companies have also plan to raise funds from third-party investors.
In the first round, the amount that they are targeting is USD 1 billion. This will include capital from both companies. Larry Fink, chairman, and CEO of BlackRock said that the world deserves a much better environment and it cannot be achieved without transformational innovation. “We will need some great innovation if the world wants to meet the target of zero-emission,” Fink was quoted as saying in a report. Fink said that decarbonization solutions and changes that can transform our economy need to be scaled up quickly.
Fink also said that it will require a lot of patient along with huge capital to achieve the goal. He said that the goal of the partnership is to define climate solutions as a standalone asset. Blackrock has asked companies to disclose their plans of sustaining in a world of net-zero greenhouse gas emissions. Fink wrote a letter to CEOs requesting them to disclose their plans about sustainability. “Better disclosures will in the best interest of both the investors and companies.” Temasek CEO Dilhan Pillay said that bold and aggressive steps are required to achieve the target of zero-emission. Temasek has already committed to reducing emissions to halve by 2030 and has plans to achieve net-zero emission by 2050.