Temasek and BlackRock launch US$600m partnership to end global warming

The two funding giants hope to advance global efforts to achieve a zero net carbon economy by 2050.

Temasek has launched a partnership with American investment management firm BlackRock to help advance global efforts to decarbonise the world by 2050.

The partnership, called Decarbonization Partners, will launch a series of late stage venture capital and early growth private equity investment funds that will focus on advancing decarbonization solutions to accelerate global efforts to achieve a "net zero" economy by 2050.

BlackRock and Temasek intend to commit a combined $804.6m (US$600m) in initial capital to invest in multiple funds launched by the partnership. The funds will also raise third-party capital from investors who are committed to achieving a net zero world while also seeking to obtain long-term sustainable financial returns. Decarbonization Partners has a fundraising target of US$1 billion for its first fund, including capital from Temasek and BlackRock.

The partnership combines both firms’ expertise in private markets to invest in companies and proven technologies that will reduce and potentially eliminate carbon emissions.

The partnership will leverage both firms’ expertise in sourcing and underwriting private investments, portfolio and risk management, and sustainable technology and analytics. 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 its portfolio.