Temasek, the state-investment company of Singapore, earlier this month announced it will commit US$3.6 billion to the newly established decarbonization solutions investment platform GenZero.
GenZero is not Temasek’s first project that aims to advance decarbonization efforts. The global company has also launched VC and private equity partnership Decarbonization Partners together with BlackRock and has joined the net-zero transition Brookfield Global Transition Fund as a founding partner.
“GenZero expands Temasek’s focus on deploying capital to catalyze solutions for a better world,” said Steve Howard, Chief Sustainability Officer at Temasek. “Achieving net-zero globally will require deployment of around US$5 trillion annually by 2030, to rapidly adopt and commercialize sustainable energy solutions. Its flexible approach will enable it to catalyze near- and long-term solutions to support ongoing efforts to achieve net zero globally.”
GenZero will focus its investments on companies that work on both short-term and long-term solutions that address the emissions gap and strive to limit climate change to 1.5 degrees. The platform will target both young companies that need long-term capital as well as mature companies that can scale.
GenZero will have three key investment areas: tech-based solutions, nature-based solutions, and CO2 ecosystem enablers.
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The platform will look for technology-based solutions that have high potential to decarbonize industries such as power and energy, transportation, manufacturing, and building. Some examples of such solutions include Carbon Capture, Utilization and Sequestration (CCUS) projects, Sustainable aviation fuel, and low-carbon materials.
GenZero will also invest in nature-based solutions in the forestry and agriculture industries that focus on the protection, restoration, and management of natural ecosystems. The new platform will create partnerships within these sectors and leverage CO2 credits.
GenZero’s third investment area, carbon ecosystem enablers, refers to investments in climate advisory, CO2 trading infrastructure, Monitoring, Reporting & Verification tech, and rating providers.
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GenZero’s CEO, Frederick Teo, is an experienced Temasek professional who most recently served as the company’s Managing Director of Sustainable Solutions. The new platform’s Board of Directors Chair is Sunny Verghese, Co-founder and Group CEO of leading food and agri-business company Olam.
“GenZero is driven by the common purpose to decarbonize for future generations,” Teo said. “Recognizing 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.”
