Mitsubishi Corp Announces Launch of Major Decarbonisation Fund in Japan, Investing $1bn in Tech
Mitsubishi Corp launches a major $1bn decarbonisation fund in Japan to support technology startups driving innovation in clean energy solutions.
Mitsubishi Corp, one of Japan's leading trading companies, is making a significant move towards decarbonisation with the launch of a substantial fund aimed at supporting technology startups. The company, in collaboration with MUFG bank and other partners, plans to allocate $1 billion towards emerging startups focused on developing innovative solutions in the areas of floating offshore wind turbines and sustainable aviation fuel.
The fund, known as the Marunouchi Climate Tech Growth Fund, aims to foster the growth and advancement of startups in Europe and the United States that are at the forefront of these sectors. By providing financial support and access to Mitsubishi's global business network, the fund seeks to facilitate partnerships between these startups and Japanese or other Asian companies. The ultimate goal is to accelerate decarbonisation efforts and drive sustainable innovation in the industry.
Mitsubishi Corp, along with MUFG bank and South Korean private equity fund Pavilion Private Equity, will establish a management company to oversee the operations of the Marunouchi Climate Tech Growth Fund. The fund plans to make approximately 20 investments in startups by April 2029, with individual investments ranging from $20 million to $100 million. The focus will primarily be on early-stage projects that have the potential to make a significant impact in the decarbonisation space.
Mitsubishi Corp has committed to providing several hundred million dollars of investment to the fund and expects it to reach a total size of $1 billion by April 2024. If this milestone is achieved, it will make the Marunouchi Climate Tech Growth Fund one of the largest funds in Japan led by an operating company. The substantial investment underscores Mitsubishi's dedication to supporting the development of innovative solutions that can drive the transition to a low-carbon future.
The urgency to address climate change and achieve net-zero CO2 emissions by 2050 is driving the need for substantial investment in decarbonisation efforts. An estimate suggests that an average annual investment of $2 trillion will be required from 2022 to 2025, with the investment target increasing to $4 trillion per year from 2026 to 2030. Mitsubishi Corp's significant investment in the Marunouchi Climate Tech Growth Fund is a crucial step towards meeting these targets and accelerating the deployment of cutting-edge technologies.
In addition to its focus on floating offshore wind turbines and sustainable aviation fuel, Mitsubishi Corp is actively exploring opportunities to invest in technologies that directly capture carbon dioxide from the air. By supporting startups in these areas, the company aims to drive innovation and contribute to the development of scalable and commercially viable solutions that can help address the pressing challenges of climate change.
Mitsubishi Corp has set ambitious goals for decarbonisation and intends to allocate ¥2 trillion (approximately $15 billion) towards decarbonisation initiatives by the fiscal year 2030. The company has already demonstrated its commitment to these goals through its investment of $100 million in the Breakthrough Energy Catalyst fund, established by Microsoft co-founder Bill Gates, which focuses on supporting decarbonisation initiatives. The fund's focus on emerging sectors and partnerships with other companies in the industry will play a crucial role in advancing decarbonisation efforts and addressing the urgent challenges of climate change.