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BlackRock, Temasek to Raise Billions for Carbon-Cutting Startups

The two asset managers are committing $600 million to seed multiple funds with focus on late-stage technologies.

Temasek has pledged to cut carbon emissions by its portfolio companies to net zero by 2050. Because it controls Singapore Airlines, one of Temasek’s priorities is finding a sustainable and cost-effective alternative to jet fuel.

Temasek has pledged to cut carbon emissions by its portfolio companies to net zero by 2050. Because it controls Singapore Airlines, one of Temasek’s priorities is finding a sustainable and cost-effective alternative to jet fuel.

Photographer: Ore Huiying/Bloomberg

Two of the world’s most powerful money managers are joining forces to build a business on climate-change investing and raise one of the largest venture-capital funds dedicated to carbon-cutting technologies.

BlackRock Inc. and Singapore’s Temasek Holdings Pte. formed a new firm, Decarbonization Partners, to take stakes in startups that have the potential to reduce the world’s reliance on fossil fuels and meet the goal of zero-carbon emissions in three decades. They’re committing a total of $600 million to the effort, including $300 million of seed capital for a $1 billion first fund, and raising the rest from outside investors.