Spanish lender BBVA and leading global investment firm KKR have formed a new strategic partnership to support the decarbonization of the economy through climate-focused investments.

According to a press release, BBVA has committed $200 million to KKR´s Global Climate Strategy, which invests in solutions at scale focused on transitioning to a low-carbon economy.

Both companies announced during Climate Week, which is being held in New York this week.

The release stated that the strategic partnership will seek to uncover new climate infrastructure-related investments, including opportunities that support the energy transition and electrification.

Transition Curve

Further, the collaboration will support the respective firm’s complementary strengths, knowledge sharing and shared goals of advancing and accelerating the energy transition.

“We are confident that the second part of this decade will see strong growth of new low-carbon infrastructures. It is an immense opportunity,” said Javier Rodríguez Soler, global head of sustainability and CIB at BBVA, in the press release.

BBVA’s goal is to become a leader in deploying advisory and financing for their clients in US and European sectors across energy, construction, mobility, and other business sectors, and KKR will help cross the bridge.

“With KKR’s proven experience in this area, we will share knowledge across our teams, capabilities, and efforts in this strategic alliance to multiply investments in infrastructure and climate projects,” Soler said.

BBVA said sustainability is one of its six strategic priorities, and it has been helped by a global financing unit specializing in clean technology innovation with offices in New York, London, Madrid, and Houston.

KKR has made three investments from its climate strategy, including in UK-based transport electrification and battery storage solutions provider Zenobe and US utility-scale solar and solar-plus-storage developer Avantus.

“We are still in the early innings of what will be a multi-decade transition to net zero (carbon emissions), which is one of the biggest investment opportunities of our time and requires participation from across the financial sector,” said Emmanuel Lagarrigue, co-head of KKR’s global climate strategy in the release.

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