Climate Finance | April 13, 2021

Singapore’s Temasek and BlackRock team up as Decarbonization Partners

Amy Cortese
ImpactAlpha Editor

Amy Cortese

ImpactAlpha, April 13 – The two powerhouse asset managers are teaming up to invest in late-stage venture capital and early growth-stage private equity opportunities scaling emerging fuel sources, grid solutions, battery storage, electric and autonomous vehicles, buildings and manufacturing and other low-carbon solutions.

Decarbonization Partners’ first fund, seeded with $300 million, is targeting a $1 billion raise. “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,” BlackRock’s Larry Fink said. 

The firms have committed a total of $600 million, and Decarbonization Partners could eventually manage more than $5 billion, Fink told Bloomberg. 

BlackRock’s big week

The U.S. asset management giant last week raised a $4.8 billion global renewable energy fund, one of the largest green infrastructure funds to date last week. The same week, it debuted a “transition readiness” ETF that pulled in a record $1.25 billion on its first day of trading.

Temasek, one of BlackRock’s largest shareholders, invested in the ETF. Last month Temasek committed $500 million for a stake in LeapFrog Investments.