Temasek warns near-term carbon emissions will rise due to aviation and energy sector hurdles

Singapore state investor Temasek reported that its near-term carbon emissions are expected to increase, driven by challenges in decarbonizing its aviation and energy portfolio companies. The firm's latest sustainability report acknowledges that portfolio emissions will rise before they fall, a candid admission that reflects the difficulty of cutting emissions in hard to abate sectors like airlines and power generation. Temasek has set a 2030 target to halve net emissions from its portfolio from 2010 levels, but the path to that goal is not linear. The report highlights that Temasek's portfolio companies in aviation and energy face structural hurdles in reducing emissions quickly. For aviation, sustainable aviation fuel remains expensive and low in supply. For energy, grid decarbonization depends on policy and technology timelines outside Temasek's direct control. The firm is pushing portfolio companies to set their own transition plans, but near term emissions will rise before they fall. This is a realistic look at the gap between portfolio decarbonization targets and the operational reality of hard to abate sectors.