Temasek Commits Billions to Launch Decarbonization Solutions Investment Platform
Singapore-based investment company Temasek announced today the launch of GenZero, a new decarbonization solutions-focused investment platform. Temasek is committing an initial S$5 billion (US$ 3.6 billion) to establish the new platform.
The launch of the new platform comes as major investment firms globally move to mobilize capital to advance climate and energy transition solutions, and to capture opportunities from initiatives to decarbonize global industries. Temasek has participated in several of these initiatives over the past few years, including launching Decarbonization Partners, a climate solutions-focused VC and private equity partnership with BlackRock, and joining Brookfield’s net zero-focused impact fund, Brookfield Global Transition Fund, as a founding investment partner.
GenZero will invest in companies developing and commercializing solutions to address the emissions gap to get the world on track to limit global temperature rise to 1.5 degrees, across both the near- and longer-term horizons, targeting opportunities ranging from early-stage companies and solutions requiring ‘patient capital,’ as well as mature companies that are ready to scale.
The new platform will focus on three key investment areas, including technology-based solutions, nature-based solutions, and carbon ecosystem enablers.
- Technology-based solutions investments include technologies that can deliver fundamental decarbonisation impact in sectors such as power and energy, transport and building, industry and manufacturing, including carbon reduction and carbon removal technologies such as low-carbon materials, Carbon Capture, Utilisation and Sequestration (CCUS), and advanced biofuels such as Sustainable Aviation Fuel (SAF).
- Nature-based solutions aims to support and scale the deployment solutions for the protection, restoration, and management of natural ecosystems supporting the avoidance, reduction, or removal of carbon emissions. GenZero will invest and co-develop projects with partners in forestry and agriculture sectors, and leverage carbon credits to accelerate funding into these solutions.
- Carbon ecosystem enablers include investments in areas such as climate advisory services, carbon trading infrastructure, Monitoring, Reporting & Verification (MRV) technologies and rating providers, supporting the development of effective and trusted carbon markets.
Temasek Steve Howard, Chief Sustainability Officer Steve Howard said:
“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. Its flexible approach will enable it to catalyse near- and long-term solutions to support ongoing efforts to achieve net zero globally.”
The new platform will be led by CEO Frederick Teo. Teo has been at Temasek for over 12 years, most recently serving as Managing Director of Sustainable Solutions. GenZero’s Board of Directors will be chaired by Sunny Verghese, Co-founder & Group CEO of food and agri-business company Olam.
“GenZero is driven by the common purpose to decarbonise for future generations. Recognising the importance of immediate action, we will focus on investment opportunities that can deliver positive climate impact by 2030 while ensuring sustainable financial returns. Besides deploying capital, we will work with our investee companies to address operational challenges and accelerate the deployment of their solutions to achieve our shared net zero target.”