With the launch of GenZero, Temasek makes one of the biggest investment commitments towards decarbonisation of any sovereign fund.
The $5 billion fund will invest globally across three focus areas: technology-based solutions, nature-based solutions, and carbon ecosystem enablers.
Temasek is a state owned company, managing investment funds on behalf of the Government of Singapore.
“GenZero expands Temasek’s focus on deploying capital to catalyse solutions for a better world. Achieving net zero globally will require deployment of around US$5 trillion annually by 2030, to rapidly adopt and commercialise sustainable energy solutions.” says Dr Steve Howard, Chief Sustainability Officer, Temasek International.
“Its flexible approach will enable it to catalyse near- and long-term solutions to support ongoing efforts to achieve net zero globally. GenZero will not only support Temasek’s efforts as we strive towards halving our portfolio’s net emissions by 2030 and working towards a net zero portfolio by 2050, but also those of the wider ecosystem.”
GenZero has already made a number of direct investments, as well as supporting other like-minded funds.
It has invested in Newlight, from the US, a biomaterial manufacturer that repurposes methane to displace plastics. And through an investment with C-Quest Capital, it’s funding energy efficient cookstoves to rural households in Southeast Asia.
And in a widely-reported partnership with Blackrock, Temasek has launched Decarbonization Partners. A series of funds focussed on late-stage venture capital and early growth private equity opportunities.
Inline with its natural capital focus it has invested in the New Forests Tropical Asia Forest Fund 2, to support Southeast Asia’s transition towards responsible forestry management. As well as partnering with Global EverGreening Alliance to support farming communities in Kenya to regenerate farm land.
They’re also working to support the growth of carbon markets through investments in South Pole, Climate Impact X and Perennial.
Temasek is a global investment company with a net portfolio valued at $381 billion
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