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BlackRock-Temasek joint fund backs Carbon Direct

Megan Hernbroth
Aug 24, 2022
Illustration of a credit card reader with the word CO2 on it
Illustration: Sarah Grillo/Axios

Carbon Direct raised $60 million in funding from private equity firm Quantum Energy Partners and investment group Decarbonization Partners, the joint vehicle formed by BlackRock and Temasek.

Why it matters: The deal is among the first out of Decarbonization Partners and reveals which industries the asset managers are targeting with their climate-tech investment push.

What's happening: Carbon Direct is a carbon management firm that makes software and offers advisory services for companies and governments. Carbon management is a fast-growing market driven by demand from organizations with net-zero targets.

Zoom in: Beyond management, carbon accounting and credit verification is also a growing area, driven by the lack of regulation and standardization of the various net-zero related products.

Quick take: The carbon management and accounting space has attracted venture capital, but as the Carbon Direct funding shows, this sector is now pulling in money from private equity and major fund managers.

Editor's note: This article has been updated to clarify the first sentence and to clarify Carbon Direct's business in the third paragraph.

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