Mirova, an affiliate of Natixis Investment Managers with a focus on sustainable finance, has unveiled its latest initiative, Mirova Energy Transition 6 (MET6). This marks the sixth strategy in its portfolio dedicated to energy transition infrastructure, with the ambitious goal of raising up to €2 billion. MET6's primary mission is to continue supporting the crucial decarbonization efforts, particularly in Europe, where the demand for diverse renewable energy sources is higher than ever.
MET6 will play a pivotal role in meeting the financing requirements for resilient infrastructure vital to the decarbonization of energy production and consumption. Building on the success of previous Mirova energy transition funds, MET6 will maintain its flexible investment approach, which includes majority or minority stakes and options for equity financing or subordinated debt. The strategy leverages the technical expertise of its teams and their robust relationships with industry leaders. Notably, MET5, launched in February 2021, exceeded its target by raising an impressive €1.6 billion in under 18 months.
This new strategy will prioritize the financing of proven technologies, such as onshore and offshore wind power, photovoltaics, hydropower, energy storage, and energy efficiency. Additionally, it will continue to support the advancement of low-carbon electric mobility and hydrogen initiatives. The MET6 team will actively seek out project promoters and provide them with the necessary financial resources to facilitate their development throughout the entire project life cycle.
While the primary focus of the fund's deployment remains Europe, it is worth noting that a portion of the investments may extend to other OECD member countries. Mirova aims to replicate successful models and extend its partnerships with European developers into new regions, particularly in Asia.
To support this expansion, Mirova's Energy Transition Infrastructure team, which manages OECD funds, has grown to 29 members, up from 22 in 2022. With over two decades of investment experience in renewable energy, the team currently oversees €3.5 billion and has funded over 1,000 projects spanning 48 countries across Europe, Asia, and Africa. Furthermore, Mirova's Singapore office will play a crucial role in both fundraising and deployment efforts.
Raphaël Lance, Managing Director of Energy Transition Funds at Mirova, emphasized the company's commitment to addressing global warming and contributing to a more sustainable economy. He stated, “MET6 will provide substantial capital to finance and support the development of innovative players across the clean energy value chain, and help accelerate decarbonization in Europe.”
To achieve the goals set out in the Paris Agreement and limit global warming to 1.5°C, a 55% reduction in greenhouse gas emissions by 2030 and achieving net-zero emissions by 2050 are imperative. This requires significant investment in clean energy, estimated at around US$4-5 trillion annually worldwide by 2030.
