The partnership, known as Decarbonization Companions, will launch a collection of late-stage enterprise capital and early progress non-public fairness funding funds, the 2 corporations mentioned in a press release.

Temasek and BlackRock plan to commit a mixed $600 million in preliminary capital to take a position throughout the funds, which might additionally elevate cash from third-party buyers. The primary fund has a goal of $1 billion, and can embrace capital from each corporations.

“The world can’t meet its internet zero ambitions with out transformational innovation,” Larry Fink, chairman and CEO of BlackRock, mentioned in a joint assertion.

He mentioned the partnership will assist outline local weather options as a standalone asset class that’s important to the 2 corporations’ collective mission, in addition to “a historic funding alternative created by the online zero transition.”

BlackRock, the world’s largest cash supervisor, is pushing corporations to reveal how they are going to survive in a world of net-zero greenhouse gasoline emissions.

In his annual letter to CEOs this yr, Fink mentioned higher disclosures about sustainability are in the very best curiosity of corporations in addition to buyers.

Temasek, a high international investor, has dedicated to halve emissions from its portfolio by 2030. It plans to ultimately transfer to internet zero emissions by 2050.

“Daring, aggressive actions are wanted to make the worldwide internet zero ambition a actuality,” mentioned Dilhan Pillay, CEO of Temasek Worldwide. “Via collective efforts with like-minded companions, we can create
sustainable worth for all of our stakeholders over the long run, and buyers may have the chance to assist ship progressive options at scale to deal with local weather challenges.”

The Decarbonization Companions funds will spend money on early stage progress corporations in areas equivalent to electrical and autonomous car applied sciences, battery storage, grid options and rising gasoline sources.

The funds will likely be staffed by staff from Temasek and BlackRock in addition to knowledgeable crew recruited to supply and undertake investments and handle the portfolio.