Blackstone, the world’s largest alternative investment firm, has announced the launch of its Sustainable Resources Credit Platform. This platform is dedicated to investing in and lending to renewable energy companies and those supporting the energy transition. With an estimated $100 billion set to be invested over the next decade, Blackstone aims to be a global leader in providing sustainable finance solutions to companies driving the energy transition.
A Global Commitment to Decarbonization
Governments and companies worldwide are committing to decarbonize at an accelerated pace, with over 90% of global emissions covered by government net zero commitments. To achieve this, an estimated $100 trillion will be required through 2050 to decarbonize the global economy. Blackstone, as one of the world’s largest sources of private capital, has a strong history of investing in renewable energy and climate change solutions. Since 2019, the firm has committed over $15 billion to investments that align with the broader energy transition. Going forward, Blackstone anticipates further growth in its capital deployment in this space.
Driving the Energy Transition
Led by Robert Horn, Global Head of the Sustainable Resources Group for Blackstone Credit, the Sustainable Resources Platform includes over 30 investment professionals across North America and Europe. These professionals are supported by Blackstone’s portfolio operations teams and the firm’s considerable expertise in Environmental, Social, and Governance (ESG) matters. The platform will invest across the credit spectrum in various sectors, such as residential solar, renewable electricity generation and storage, decarbonized transportation, green financings, and other energy infrastructure investments.
Unleashing Blackstone’s Scale
Jon Gray, President and COO of Blackstone, believes that private capital is essential in supporting decarbonization goals and that Blackstone’s scale allows them to play a major role. Dwight Scott, Global Head of Blackstone Credit, shares this sentiment, stating that Blackstone Credit’s unmatched scale will be unleashed to support companies that drive the energy transition. Robert Horn adds that large-scale and flexible capital are crucial in funding decarbonization, and he looks forward to providing efficient capital and Blackstone’s expertise to companies across various sectors driving this important transition.
Investments in the Market
Blackstone has been an active participant in the market, making several recent debt and equity investments. Some notable investments include:
- A commitment of approximately $3 billion in Invenergy Renewables, the largest developer of renewable energy projects in North America.
- Financing over 350 MW of solar across 18 states through an investment in Altus Power, a solar power company providing clean electricity and energy storage to customers across the United States.
- Investment in ClearGen, a company that provides flexible capital for microgrids and other energy transition solutions for commercial and industrial customers.
- Investment in Transmission Developers Inc. (TDI) to develop the Champlain Hudson Power Express (CHPE), an underground electric transmission line delivering clean power to New York City.
A Commitment to Sustainability
Blackstone has also made significant commitments to reducing carbon emissions. In January 2021, the firm announced its Emissions Reduction Program, aiming to reduce carbon emissions by 15% in aggregate over three years for all new assets under its control. Blackstone has developed a robust decarbonization program to increase value by reducing energy use and carbon emissions at scale. The firm is also working on a carbon accounting system to track and report on emissions reductions, providing critical data to investors to help them meet climate targets and financial goals.
About Blackstone
Blackstone, with $731 billion in assets under management, is the world’s largest alternative investment firm. Its mission is to create positive economic impact and long-term value for investors, the companies it invests in, and the communities it works in. With investment vehicles focused on various sectors globally, including private equity, real estate, public debt and equity, life sciences, and more, Blackstone uses its exceptional people and flexible capital to solve problems and drive sustainable growth.
Contact: Kate Holderness
[email protected]
646-482-8774
Source: Climate Action Tracker, IRENA World Energy Transitions Outlook
