Singapore state investor Temasek has announced the launch of GenZero, a wholly-owned investment platform company dedicated to accelerating decarbonisation globally.
According to an announcement, Temasek has committed an initial amount of S$5 billion ($3.6 billion) to establish GenZero.
There is an urgent need to accelerate decarbonisation across all sectors to avoid irreversible damage to the planet by reducing global carbon emissions and address the emissions gap, which is estimated at 19-26 gigatonnes of carbon in 2030 for a 1.5 degrees Celsius scenario, Temasek said.
GenZero looks to catalyse decarbonisation solutions with its ability to deploy long-term and flexible capital. It invests in opportunities ranging from early-stage companies and solutions that require patient capital to commercialise and grow, to more mature ones that are ready to scale.
The investment platform focuses on three areas, including technology-based solutions, nature-based solutions and carbon ecosystem enablers.
“Achieving net zero globally will require deployment of around $5 trillion annually by 2030 to rapidly adopt and commercialise sustainable energy solutions. 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,” said Temasek International Chief Sustainability Officer Steve Howard.
GenZero will also invest with third-party funds and collaborate with like-minded partners to expand its network. It is currently working with Decarbonization Partners, a Temasek-BlackRock partnership.
The investment platform will be led by CEO-designate Frederick Teo, who is currently the managing director of sustainable solutions at Temasek International.
GenZero has invested in Newlight, a US-based manufacturer of biomaterial produced from methane to displace plastics. Through a joint investment with C-Quest Capital, GenZero is funding deployment of clean, energy-efficient cookstoves to rural households in Southeast Asia to reduce carbon emissions.
It has also invested in global climate solutions firm South Pole, which develops and implements emission reduction projects and strategies for companies, governments and organisations around the world.
Temasek is a global investment company with a net portfolio valued at S$381 billion (US$283 billion) as of 31 March 2021.