KKR, a leading global investment company, and Spanish bank BBVA have announced a new strategic partnership aimed at strengthening climate solutions and infrastructure investments to drive the deregulation of the real economy. As part of this partnership, BBVA has invested $200 million in KKR’s global climate strategy, which will be launched in 2023. The strategy focuses on investing in key solutions that promote the transition to low carbon economy. KKR’s infrastructure unit, which runs the strategy, has invested heavily in projects related to power supply. The firm identified the shift from “brown to green” in resource-intensive sectors as a key investment objective, with decarbonisation as a key focus. Emmanuel Lagarrigue and Charlie Gailliot, Co-Heads of KKR’s Global Climate Strategy, highlighted the long-term nature of this shift to net zero, describing it as a multi-decade process that represents one of the most significant investment opportunities in recent times.
They emphasized that collaboration across the financial sector is essential, and BBVA’s experience in renewable energy, combined with their dedication to addressing climate change, makes them an ideal partner for this venture. The partnership will seek to uncover new climate infrastructure investments that support the ongoing energy transition and promote electrification. BBVA, which has been enhancing its sustainability initiatives, is poised to take a leading role in this area. The bank launched a global advisory and financing unit last year to support clean technologies, initially setting up operations in London, New York, and Madrid, with a recent expansion to Houston. BBVA’s commitment to sustainability began in 2020, when the bank identified it as one of its six strategic priorities. Carbon neutralization and smart technologies are the focus of their investments. Javier Rodríguez Soler, global head of life and business and investment banking (CIB) at BBVA, expressed confidence that the second half of the decade will see significant growth in carbon- little. Soler said that BBVA wants to be a leader in providing consulting and financial services to sectors such as energy, construction and mobility, so that they can build infrastructure for the future. in front. He also emphasized that the partnership with KKR is important for the bank’s sustainability strategy. The collaboration between KKR and BBVA is seen as an important step towards achieving their shared vision of promoting climate-related investments and facilitating the transition of world to the green economy.