BlackRock commits US$400M to Dubai’s Positive Zero for decarbonization initiatives

UAE – BlackRock has committed to investing up to US$400 million in the Dubai-based decarbonization firm, Positive Zero, through a diversified infrastructure fund, as announced in a statement by Positive Zero.

The statement affirmed that this substantial investment aims to bolster Positive Zero, an infrastructure business focusing on decentralized decarbonization, in advancing energy transition initiatives across Gulf countries.

The company was established last year by Creek Capital, which centers its investments on climate initiatives, timed alongside the U.N. COP27 climate summit in Egypt.

It was formed through the merger of solar enterprise SirajPower, energy efficiency services provider Taka Solutions, and on-demand battery operation HYPR Energy.

Creek Capital, co-founded by Mohammed Abdulghaffar Hussain, its chairman, and David Auriau, its managing director, focuses on climate-centered investments.

Hussain also holds the position of managing director at Green Coast Enterprises, a Dubai-based family conglomerate. Auriau previously held positions at Alstom Power and consultancy firm Oliver Wyman.

Ed Winter, BlackRock’s head of APAC and Middle East for diversified infrastructure, expressed confidence in Positive Zero’s prospects, citing advantageous economic growth and the ambitious energy-transition objectives outlined by the United Arab Emirates and other Gulf nations. Winter’s sentiments were conveyed through Positive Zero’s statement.

This investment aligns with the UAE-hosted COP28 summit’s objective, concluded the previous week, aiming to triple renewable energy capacity by 2030, as highlighted by Hussain in the statement.

At COP28, countries agreed to work together to triple the world’s current renewable energy generation capacity to at least 11,000 gigawatts by 2030, considering different starting points and national circumstances.

They will also aim to double the global average annual rate of energy efficiency improvements to 4 percent, from 2 percent currently, amid efforts to limit the global temperature rise to 1.5°C above pre-industrial levels, the key Paris Agreement goal.

BlackRock is among the institutional investors backing the UAE’s US$30 billion climate fund called Alterra, which aims to raise US$250 billion globally in the next six years.

“Decarbonization and decentralization are two key structural trends that we believe present significant investment opportunities,” added Mr Winter.

By 2030, emerging markets and developing economies will require US$2.4 trillion every year to address climate change, according to the Climate Policy Initiative.

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