Blackrock, Temasek Raise $1.4B for Decarbonization Fund

BlackRock and Singaporean state investment firm Temasek Holding’s decarbonization-focused fund, Decarbonization Partners, has closed its debut fund at $1.4 billion.

The fund, which focuses on companies aiming to transition to a net-zero economy, exceeded its initial $1 billion target with participation from limited partners Allstate, BBVA, KIRKBI, Mizuho Bank, MUFG Bank, and TotalEnergies, as well as unnamed Singaporean institutional investors.

“Decarbonization Partners brings together the best of Temasek and BlackRock to identify generational investment opportunities in climate technology that we believe will help to bring down the green premium, enable a more affordable energy transition, and generate long-term financial returns for our clients,” said Larry Fink, chairman and CEO of BlackRock.

Decarbonization Partners launched as a joint venture in 2022. The firms initially committed a combined $600 million to the partnership and have already invested in seven companies that span technologies including li-ion batteries, clean hydrogen, science-based carbon management services, low-emissions battery recycling, EV fleet management and thermal energy storage for industrial applications.