Japan's Mitsubishi is planning to launch one of Asia's largest net zero tech growth vehicles which plans to pump fresh equity into startups that focus on renewable energy, next-generation fuels, batteries and other decarbonisation solutions.
Called the Marunouchi Climate Tech Growth Fund, the vehicle has a war chest of over $1 billion in commitments from a range of investment giants.
It has been reported that Mitsubishi has put "several hundred million dollars" into the fund, while an equal commitment has come from Mitsubishi Heavy Industries.
The investment vehicle will be managed by a new joint venture that has been set up by Mitsubishi and South Korean private equity fund Pavilion, with Mitsubishi's stake in the JV to be around 90%.
European and US startups
The vehicle's primary targets will be startups across Europe and the U.S., as they are seen to be leading in areas such as sustainable aviation fuel and offshore wind farms.
A Mitsubish spokesperson explained that “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.”
"The Marunouchi Climate Tech Growth Fund is expected to play a crucial role in achieving Mitsubishi’s decarbonization goals," he added.
"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," the spokesperson continued.
“We believe that the fund will contribute significantly to the global effort to tackle climate change and to achieve a sustainable future,” he concluded.
