In response, BBVA has announced a commitment to KKR’s Global Climate Strategy amounting to $200 million in equity, as part of a strategic partnership focused on accelerating the transition to a low-carbon economy. The partnership is announced in the midst of Climate Week held in New York by these two companies. They are looking forward to induce investment into green infrastructure and support energy transition, electrification, and decarbonization. This will come out as a giant leap forward for both companies as they look forward to driving large-scale climate action projects across the globe.
BBVA Commitment to Climate Action
BBVA is one of Spain’s largest financial institutions, with placing sustainability at the heart of business strategy. According to Javier Rodríguez Soler, Global Head of Sustainability and Corporate & Investment Banking for BBVA, “Our goal is to become a leader in deploying advisory and financing to support our clients in key sectors like Energy, Construction, and Mobility.”. This will be an aggressive partnership for KKR, an important piece in our sustainability strategy.
BBVA Group increased its commitment to sustainable finance with specialized units that advise clients on and offer financing options for transitions to cleaner energy sources and more low-carbon practices. In addition, the sustainability hub launched recently in Houston, Texas, is expected to further enhance the bank’s know-how about clean technologies and energy transition strategies.
BBVA, then, can identify and invest in the most innovative climate infrastructure projects in partnership with KKR, supporting its strategy in favour of clients on their sustainability journey. The sustainability focus of BBVA complements this global demand increasing for investments in low-carbon emitting projects advancing the energy transition.
KKR’s Global Climate Strategy
This partnership between KKR-an investment firm with a global track record in infrastructure investment and one of Spain’s largest, most committed bank’s evidences BBVA’s Global Climate Strategy. “This is an important opportunity-not only for us at KKR-but for any investor looking to invest in this multi-decade transformation towards net zero as one of the largest investment opportunities of our time,” say Emmanuel Lagarrigue and Charlie Gailliot, Co-Heads of KKR’s Global Climate Strategy. Working with BBVA will enable us to multiply our efforts at investment in infrastructures and climate projects.
KKR has been a pioneer in sustainable infrastructure investment for over 15 years. Actually, the firm has already committed over $21 billion to renewable energy and climate-related projects focusing on solutions that are urgently needed to decarbonize. Some of the investments include Zenobē in the UK as a leading battery storage solution provider, Avantus in the US being a utility-scale solar company, and Ignis focusing on green hydrogen and ammonia projects in Spain.
This new partnership will further strengthen the investment efforts of KKR, and both firms will be able to share their knowledge and resources to unveil new projects that are in line with the common goal of promoting sustainable development. With this strategic partnership, the two companies will be looking forward to getting value in this growing market of sustainable infrastructure as massive growth in the coming years is anticipated with an increasing rate of action by the global communities and businesses towards meeting the needed climate ambitions globally.
Energy Transition and Decarbonization
Key areas of energy transition will be targeted through a focus on electrification, clean technology development, and decarbonization initiatives with a strong geographical focus in Europe and the US. Projects focus on areas that reduce reliance on fossil fuel, lower greenhouse gas emissions, and enhance the resilience of energy systems.
Electrification of the energy system through renewable sources, including solar and wind energy, will be a crucial part of the strategy of the partnership. KKR’s investments in utility-scale solar projects, such as Avantus, and BBVA’s strengths in financing renewable energy projects will further stimulate innovation and deployment of clean technologies.
Another important aspect of the alliance is the decarbonization of industries based on carbon-intensive processes, notably those that have inspired industry for centuries. The alliance will drive innovations such as the production of green hydrogen and energy storage, which are considered the foundation for heat reduction in sectors like transport and heavy industry.
The Contribution of BBVA in Sustainable Finance
In its role as a leader in sustainable finance, the bank creates an indispensable role for it to help translate global climate goals into reality. The cleantech innovation unit of the bank based in New York, London, Madrid, and Houston has the key function of identifying emerging opportunities in the clean energy space and advising clients on how to navigate the complex transition toward a low-carbon economy.
The $200 million investment made by BBVA into KKR’s Global Climate Strategy further adds to its work in sustainable finance while enhancing its credentials as a mover and shaker in the fight against climate change. A sustainability hub that was recently launched by the bank in Houston on September 12th and goes hand-in-glove with clean technology innovation will help develop new solution lines to speed up their transition processes for clients.
A Milestone in Climate Investment
BBVA and KKR have signed a strategic partnership that will be a landmark step in the global battle against climate change, under sustainability infrastructures with investment. Both companies boast of robust experience and financial strength, the perfect combination to fast-track massive climate action projects that will see the global economy transition into the low-carbon future.
This type of innovative cooperation is just what is so badly needed to address this challenge of decarbonization in an urgent manner. With such focus areas as electrification, clean technology, and decarbonization, BBVA and KKR are making a significant contribution toward the global effort toward achieving net zero emissions and building a more resilient and sustainable world.
Conclusion
BBVA has committed to $200 million in KKR’s Global Climate Strategy, highlighting the deep role of financial institutions in sustainable development. BBVA and KKR have been building complementary strengths together as the two companies boldly take next steps towards speeding up the energy transition, supporting decarbonization, and investing in infrastructure in creating a low-carbon economy. This is not only a win for the climate but also a model of how strategically designed collaboration leads to impactful large-scale climate action projects.