BlackRock Commits Up: In a strategic move towards sustainable initiatives, BlackRock has pledged a substantial investment of up to $400 million in Positive Zero, a Dubai-based decarbonisation company. This investment, facilitated through a diversified infrastructure fund, is poised to bolster Positive Zero’s efforts in advancing energy transition projects across Gulf countries.
Positive Zero, established last year by climate investment-focused Creek Capital, operates as a decentralised decarbonisation infrastructure business. The company’s formation coincided with the U.N. COP27 climate summit in Egypt. It emerged through the merger of prominent entities, including solar company SirajPower, energy efficiency services firm Taka Solutions, and on-demand battery business HYPR Energy.
Creek Capital, founded by Mohammed Abdulghaffar Hussain (Chairman) and David Auriau (Managing Director), played a pivotal role in bringing together these entities. Notably, Hussain also serves as the Managing Director of Dubai-based family conglomerate Green Coast Enterprises, adding a layer of expertise to Positive Zero’s leadership.
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Ed Winter, BlackRock’s Head of APAC and Middle East for diversified infrastructure, expressed confidence in Positive Zero’s potential to capitalize on the prevailing tailwinds driven by ambitious economic growth and energy-transition objectives set forth by the United Arab Emirates (UAE) and other Gulf nations. Winter’s endorsement, as stated in Positive Zero’s release, underscores the alignment of this investment with the broader regional sustainability agenda.
The infusion of funds is strategically timed to align with the UAE-hosted COP28 summit, which concluded last week. Positive Zero aims to play a pivotal role in realizing the summit’s objectives, particularly the ambitious target of tripling renewable energy capacity by 2030. Mohammed Abdulghaffar Hussain emphasized the significance of BlackRock’s investment in advancing Positive Zero’s mission and contributing to the UAE’s renewable energy aspirations.
BlackRock, a major player in global finance, remains committed to sustainable investments, and this collaboration with Positive Zero exemplifies its dedication to supporting impactful ventures in the green infrastructure space. As Positive Zero charts its course in the Gulf’s decarbonisation landscape with BlackRock’s backing, industry observers eagerly anticipate the catalytic effects of this partnership on the region’s sustainable future.
Our Reader’s Queries
What is the BlackRock controversy?
Critics on the right have accused BlackRock of being overly enthusiastic about green energy, leading corporations to undertake expensive initiatives. Additionally, their focus on ESG may have contributed to their clients losing a staggering $1.7 trillion during the market downturn in early 2022.
Why are people pulling out of BlackRock?
Some Republicans are criticizing BlackRock’s sustainable investment policies, claiming that they pose a threat to the U.S. energy industry and go beyond the company’s obligation to provide returns to shareholders. However, some argue that this backlash is politically motivated and influenced by lobbyists in the oil and gas industry.
What has BlackRock done recently?
BlackRock has made some significant exits, including SoFi, Fisker, and Chewy. They have also acquired 22 organizations, with their most recent acquisition being Kreos Capital on June 8, 2023.
Why is BlackRock so powerful?
BlackRock has emerged as a market leader by drawing in clients and employees, and by acquiring other asset management firms. The company’s goal is to establish itself as the most respected investment and risk manager in the world, with a mission to create a brighter financial future for its clients.