Singapore's Temasek, BlackRock team to finance transition
Temasek Holding, a Singapore state investor, and BlackRock, the world’s largest asset manager, said April 13 they were committed to $600mn in investments to fund firms involved in the energy transition.
The firms said they had a shared belief that moving toward a cleaner energy future presents an extraordinary opportunity for further investments. Larry Fink, the CEO of BlackRock, said that for the transition to proceed, well-managed capital support is necessary.
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“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,” he said.
Dubbed Decarbonisation Partners, the companies set a fundraising target of $1bn that they said would advance the energy transition toward the goal of a net-zero economy by 2050.
The funding announcement follows a decision by BlackRock and Valero Energy to develop a 1,900 km pipeline network with various points from Nebraska to Illinois that can capture CO2. Valero would be the primary shipper and secure most of the initial system capacity.
The International Energy Agency (IEA) has described carbon capture and storage (CCS) facilities like these as integral components of a carbon-neutral future, though cost can be an impediment. In January, the IEA noted that, even with the pandemic, total investments committed globally to CCS last year were around $4.5bn.