Mitsubishi Corp. is set to launch a new climate tech growth fund, which is expected to be one of the largest in Japan. The $1 billion fund, called the Marunouchi Climate Tech Growth Fund, will invest in startups with promising technologies in renewable energy, next-generation fuels, storage batteries, and other areas that contribute to decarbonization efforts.
The fund will be managed by a company jointly established by Mitsubishi Corp., MUFG bank, and South Korean private equity fund Pavilion Private Equity. Mitsubishi will invest several hundred million dollars in the fund, while other investors, including Mitsubishi Heavy Industries, will be invited to participate.
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Individual investments are expected to range between $20 million and $100 million per startup, with around 20 investments to be made by April 2029. Mitsubishi's stake in the management company is over 90%, and it will lead in selecting investments. The fund will mainly focus on European and U.S. startups that are leading in areas such as floating offshore wind turbines and sustainable aviation fuel.
“We aim to facilitate collaboration between these tech startups and Japanese and other Asian companies via our global business network and to promote decarbonization efforts among them,” said a Mitsubishi spokesperson.
Mitsubishi's move comes amid growing investor interest in climate tech, with many funds being launched worldwide to support companies working on innovative climate solutions. According to the International Energy Agency, an average annual investment of $2 trillion will be required from 2022 to 2025 to achieve net-zero CO2 emissions by 2050, rising to $4 trillion per year in 2026 to 2030.
Mitsubishi is also planning to put 2 trillion yen ($15 billion) into decarbonization projects by fiscal 2030. It invested $100 million in 2022, with the money going to Breakthrough Energy Catalyst, Microsoft co-founder Bill Gates' decarbonization fund.
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The Marunouchi Climate Tech Growth Fund is expected to play a crucial role in achieving Mitsubishi's decarbonization goals. By investing in innovative technologies, the fund will not only help to reduce carbon emissions but also create new opportunities for collaboration and growth in the clean energy sector.
“We believe that the fund will contribute significantly to the global effort to tackle climate change and to achieve a sustainable future,” said a Mitsubishi spokesperson.
With the launch of this fund, Mitsubishi is positioning itself as a leader in the fight against climate change, and it is likely that other companies will follow suit, investing in innovative climate solutions to address the urgent challenges facing our planet.
