Blackstone’s $7.1B Credit Fund to Propel Global Energy Transition
- Media Manager
- Aug 21, 2023
- 1 min read
Carboncredits.com
Written By: Jennifer L
Published: August 22nd, 2023
The world’s largest private equity firm and asset manager Blackstone Inc.’s $7.1 billion credit fund will help pump capital into assets that propel energy transition such as electric vehicle factories and carbon capture facilities.
The company said that its recently closed Blackstone Green Private Credit Fund III was the biggest fund ever raised to financially support the energy transition.
As per the head of Blackstone Credit’s Sustainable Resources Group, Robert Horn, the transition impacts major sectors of the economy. This further led to more private capital requirements.
Funding the Energy Transition to Decarbonize the Global Economy
Innovative and revolutionary solutions are a must for both clean energy transition and industrial decarbonization.
According to the International Energy Association, technologies that are under development can reduce over 40% of carbon emissions in 2050. Some of these technological solutions include green hydrogen, sustainable aviation fuels (SAF), and carbon capture and storage (CCS).
But these green technologies are still in their early phases and remain uncompetitive with the current carbon-intensive alternatives. Trillions of dollars in capital investments are necessary to fund their R&D and scale them up to commercialization.
As seen below, the IEA estimates that the annual capital investment needed for net zero is over $4 trillion.
