BlackRock, Temasek to raise billions for carbon-cutting startups

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 and Singapore’s Temasek Holdings 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 $600m to the effort, including $300m of seed capital for a $1b first fund, and raising the rest from outside investors. Eventually, Decarbonization Partners aims to manage billions across multiple funds, BlackRock CEO Larry Fink said. Temasek, a state-owned investor that oversees about $230b, has pledged to reduce net-carbon emissions by its portfolio companies to half their 2010 level by 2030 and to zero by 2050. Because it controls Singapore Airlines, one of Temasek’s priorities is finding a sustainable and cost-effective alternative to jet fuel. <br/>