Singapore-based global investment company Temasek has unveiled GenZero, a wholly-owned investment platform company dedicated to accelerating decarbonisation globally.
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.
It has three investment focus areas: (i) technology-based solutions that deliver deep decarbonisation impact through climate-driven technologies; (ii) nature-based solutions that help protect and restore our natural ecosystems to generate climate impact while benefiting local communities and biodiversity; (iii) carbon ecosystem enablers which refer to companies and solutions that support the development of an effective, efficient, and credible carbon ecosystem.
Together, these focus areas present a holistic and integrated approach to address the emissions gap, with solutions across both the near- and longer-term horizons. GenZero seeks to deliver positive climate impact alongside long-term sustainable financial returns.
"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,” said Dr Steve Howard, Chief Sustainability Officer, Temasek International, commenting on its establishment.
“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."
GenZero will invest in 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). starting with 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.
Protecting and restoring natural ecosystems with nature-based solutions, GenZero will also support and scale the deployment of nature-based solutions through investments and project co-development with partners in forestry and agriculture sectors, and leverage carbon credits as a market mechanism to accelerate funding into these solutions.
"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.," said Frederick Teo, CEO-designate, GenZero.
“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.”
It has also invested in the New Forests Tropical Asia Forest Fund 2, which aims to develop a diversified portfolio of sustainable forest plantation assets in Southeast Asia and support the region's transition towards responsible forestry management.