GenZero, which is backed by an initial commitment of $3.64bn from Temasek, is expected to help in catalysing decarbonisation solutions around the world by investing in the areas of technology-based solutions, nature-based solutions, and carbon ecosystem enablers
Singapore-based Temasek has launched GenZero, an investment platform company, backed by an initial commitment of SGD5bn ($3.64bn) to expedite decarbonisation around the world.
By deploying long-term and flexible capital, GenZero is expected to help in catalysing decarbonisation solutions.
It will inject money into opportunities ranging from early-stage firms and solutions that need patient capital to commercialise and expand, to more mature companies that are ready to scale.
Temasek, which is a Singapore government-owned investment company, said that GenZero will focus on three investment areas. These will be technology-based solutions, nature-based solutions, and carbon ecosystem enablers.
Temasek International chief sustainability officer Steve Howard said: “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.
“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.”
The new investment platform company will invest in climate-driven technologies that are capable of delivering deep decarbonisation impact. It will invest in solutions that help preserve and restore the natural ecosystems to deliver climate impact while benefiting both biodiversity and local communities.
The third area of investment will be focused on carbon ecosystem enablers, which are companies and solutions that help in developing a carbon ecosystem that is effective, efficient, and credible.
In the climate-driven technologies area, GenZero has invested in US-based Newlight, which manufactures biomaterial produced from methane as an alternative to plastics.
The new firm, under the nature-based solutions focus area, has invested in the New Forests Tropical Asia Forest Fund 2. The aim of the fund is to build a diversified portfolio of sustainable forest plantation assets in Southeast Asia and underpin the region’s shift towards responsible forestry management.
In the third area of carbon ecosystem enablers, the company has invested in South Pole, a global climate solutions firm. It has also invested in Perennial, a US-based start-up that employs artificial intelligence and remote sensing to quantify soil organic carbon sequestration in agricultural areas.
Temasek said that a dedicated team of professionals having vast expertise in the investment and sustainability space will manage GenZero. The new venture will be led by CEO-designate, Frederick Teo, who is presently Temasek International’s managing director of sustainable solutions.
Teo said: “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.”