BlackRock and Temasek’s decarbonization-focused fund Decarbonization Partners announced today that it has raised $1.4 billion at the final close of its inaugural fund, Decarbonization Partners Fund I, well ahead of the firm’s $1 billion fundraising target.

Decarbonization Partners was launched by BlackRock and Temasek in 2022, establishing a late-stage venture capital and growth private equity partnership to invest in companies providing technologies and solutions that help accelerate the transition to a net zero economy by 2050. Since launch, the Decarbonization Team has grown to more than 25 members across offices in New York, San Francisco, Singapore, London, Paris and Houston.

Larry Fink, Chairman and CEO of BlackRock, said:

“There is enormous demand for energy infrastructure as many countries seek to transition to lower-carbon sources of power while also achieving energy security. 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.”

The firms initially committed a combined $600 million to the partnership. In addition to BlackRock’s and Temasek’s commitments, the fund received commitments from more than 30 institutional investors across 18 countries, including public and private pension funds, sovereign wealth funds, insurance companies, corporates and family offices.

Temasek CEO Dilhan Pillay said:

“Addressing the climate crisis requires innovation at scale, as well as significant and sustained financial resources to enable that. No single entity can do it on their own. We’re pleased and encouraged to see many other partners and investors coming on board for Decarbonization Partners’ inaugural fund. Their participation will support the acceleration of innovative solutions for real-world decarbonization at scale. Such collaborations and collective efforts are critical as we strive to accelerate progress towards our global net zero ambition.”

Classified as Article 9 under the EU’s SFDR regulation, the fund invests in companies with de-risked technologies that are ready to scale. To date, the fund has invested in seven companies across a range of decarbonization technologies including sustainable materials for improved performance in li-ion batteries, clean hydrogen, science-based carbon management services, low-emissions battery recycling, and thermal energy storage for industrial applications.

Dr. Meghan Sharp, Global Head of Decarbonization Partners said:

“This successful fundraise demonstrates the unique strength of our team and platform, which we’ve been building for the last two years. Clients have shown conviction in our ability to execute our strategy of supporting the acceleration of decarbonization and the transition to a net-zero economy through our investments. Decarbonization Partners was deliberately set up as a purpose-built entity that can uniquely convene and collaborate with key players in the climate ecosystem: innovative companies, large corporates, co-investors, clients and later-stage capital providers.”