In a conversation with BloombergNEF, Emmanuel Lagarrigue, the co-head of climate strategy at KKR, discussed the firm's strategic shift towards green investments, focusing particularly on batteries as a key area of interest. KKR's first investment under the Climate Fund was in the UK-based Zenobe, with subsequent investments in US-based Avantus and Spain's Ignis, showcasing a recognition of the pivotal role batteries play in grid balancing and transportation electrification. Lagarrigue emphasized the ease of battery installation compared to traditional transmission lines, foreseeing batteries as a core component of future infrastructure investments. With a climate-focused approach, KKR aims to invest in emissions-intensive sectors in developed economies, allocating substantial equity capital to each deal over a seven-year holding period. Lagarrigue expressed optimism about reaching net-zero emissions by 2050 and highlighted the rapid advancements in battery technologies, projecting batteries to be the next significant investment opportunity comparable to solar. Addressing concerns about supply chain security in battery manufacturing, Lagarrigue dismissed potential growth impediments, stating that the supply chains for battery components are evolving, and there is an abundance of metals required for battery production. He stressed the importance of sustainable mining practices and highlighted the need for localized supply chains to reduce carbon footprints. Overall, KKR's strategic approach underlines the growing importance of batteries in the transition to a greener economy and the potential for significant investment opportunities in this space.