Decarbonization Partners
BlackRock and Temasek are partnering to establish Decarbonization Partners, which will focus on investments that advance decarbonization solutions. It’s part of our commitment to support the goal of net zero carbon emissions by 2050 and help clients participate in this historic investment opportunity.
Together, BlackRock and Temasek have committed US$600 million to invest in companies and proven technologies that will reduce and potentially eliminate carbon emissions.
Temasek and BlackRock share the belief that climate transition presents a significant investment opportunity. The partnership will seek to make investments in early stage growth companies targeting proven, next-generation renewable and mobility technology including emerging fuel sources, grid solutions, battery storage, and electric and autonomous vehicle technologies as well as in building and manufacturing sectors to drive decarbonization, resource efficiencies, and material and process innovation.
The partnership intends to 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. In addition to expertise from BlackRock and Temasek, our partnership will convene scientists, technologists, and thought leaders in the sustainability space.
Decarbonization Partners builds on BlackRock’s deep expertise in sustainable investing and is helping to deliver on the net zero commitments we laid out in our 2021 letter to clients, which span measurement and transparency, investment management, and investment stewardship.
Our investment offerings, spanning renewable power to sustainable ETFs, are helping accelerate the transition to net zero. This partnership offers the next step in our offerings. As the world transitions to a net zero economy – seeking ways to accelerate decarbonization – Decarbonization Partners seeks to be at the center of that transformation.
Meghan Sharp
To reach net carbon zero by 2050 or sooner, we need to invest around US$4.5 trillion per year, every year from now until 2050. There’s a 60%+ gap in where those investment dollars are coming from and where they’re going.
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Meghan Sharp is the Global Head of Decarbonization Partners, a partnership between BlackRock and Temasek. It is a private capital investor that supports a new generation of technologies that will help get the world to net zero by 2050.
Meghan Sharp
The most exciting investments that we’re seeing are in sectors like carbon capture utilisation and storage, carbon management, bio and low carbon products, low carbon and renewable energy. Advanced mobility as well as the digital transformation that underlies all of these.
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Decarbonization Partners has also made some investments on future materials.
Meghan Sharp
We’re looking at one opportunity in the synthetic materials space. It’s an alternative leather. It’s a plant-based leather made out of mushrooms. Leather is a very carbon-intensive product and consumers are demanding a more sustainable alternative and a lot of consumer product brands have their own net carbon zero goals that they are trying to deliver.
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It is more urgent than ever to mitigate climate change. But new streams of capital offer hope that efforts to decarbonize will pick up greater speed.
Dr Steve Howard,
Chief Sustainability Officer, Temasek
I’d say hope is also a renewable resource because the future is going to be a revolution in how we produce things, how we feed ourselves, how we transport ourselves and each other, and how the energy systems are, and we can all play our part. So I think we’ve never had so much human potential for change, so many people that are educated, so much awareness. Human potential is at an all-time high. So if we unlock that together, then we will surprise and delight ourselves.
Advancing capital to accelerate decarbonization solutions
Meghan Sharp, Global Head of Decarbonization Partners, explains in this video how a new generation of technologies will help get the world to net zero by 2050.
