A new strategic alliance has been formed by global investment firm KKR and BBVA to aid in the decarbonisation of the economy.
As part of the strategic relationship, BBVA has contributed $200m (€187m) to KKR’s Global Climate Strategy, which invests in large-scale solutions to help move to a low-carbon economy.
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The joint venture will also look for new climate infrastructure investment possibilities, such as those that promote energy transition and electrification. Likewise, the effort will benefit both firms’ complementary strengths, knowledge sharing, and common aims of promoting and accelerating the energy transition.
BBVA wants to assist its clients move toward a more sustainable future. To this purpose, it has made sustainability one of its six strategic pillars, putting it at the heart of its operations.
The bank has highlighted decarbonisation and clean technologies as important investment opportunities. As a result, it formed a global funding group that focuses in cleantech innovation. This team, situated in New York, London, Madrid, and Houston, offers funding and consultancy services.
Additionally, BBVA invests in some of the most modern and innovative climate action funds, with the goal of generating financial returns while also participating in disruptive projects. The bank also wants to gain experience in these new technologies so that it can better advise companies who are affected by them and, eventually, help them with their financial requirements.
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By GlobalDataGlobal Head of Sustainability and CIB at BBVA, Javier Rodríguez Soler stated: “We are confident that the second part of this decade will see strong growth of new low carbon infrastructures. It is an immense opportunity. Our goal is to become a leader in deploying advisory and financing to support our clients in US and Europe sectors like Energy, Construction, Mobility, and others in building the infrastructures of the future. This ambitious partnership with KKR will be a key piece of our sustainability strategy. Teams from both groups will work together to take advantage of this opportunity of growth for our businesses.”
“We are still in the early innings of what will be a multi-decade transition to net zero, which is one of the biggest investment opportunities of our time and requires participation from across the financial sector. We are delighted to collaborate with BBVA given their industry-leading presence within the renewables sector and their deep commitment to mitigating the impacts of climate change,” added Emmanuel Lagarrigue and Charlie Gailliot, co-head of KKR´s Global Climate Strategy.
With over 15 years of experience in infrastructure investing, KKR has invested over $21bn in renewable energy and climate-related projects. They have made three climate strategy investments: Zenobē, Avantus, and Ignis. Zenobē focuses on transportation electrification and battery storage solutions, while Avantus focuses on solar projects.
