Mirova Seeks €2bn for Energy Transition Fund

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by KnowESG
KnowESG_Mirova Seeks €2bn for Energy Transition Fund
Image courtesy of Mirova

Mirova, a subsidiary of Natixis Investment Managers dedicated to sustainable finance, has announced the initiation of Mirova Energy Transition 6 (MET6), marking its sixth initiative focused on energy transition infrastructure.

The goal of this project is to secure funding of up to €2 billion. This latest endeavour will continue its steadfast support for decarbonisation efforts, primarily in Europe, where the demand for diverse renewable energy sources has never been more pressing.

Mirova Energy Transition 6 (MET6) is set to play a pivotal role in meeting the financial requirements for resilient infrastructure, a critical component of the energy production and consumption decarbonisation process.

Building upon the successful track record of previous energy transition funds by Mirova, MET6 will maintain a flexible investment approach. This approach encompasses both majority and minority stakes, along with equity financing and subordinated debt, leveraging the robust technical expertise of its teams and their strong relationships with established industry players.

This new investment strategy follows in the footsteps of Mirova Energy Transition 5 (MET5), which exceeded its target by raising 1.6 billion euros in less than 18 months after its launch in February 2021.

MET6's primary aim is to finance proven technologies, such as onshore and offshore wind power, photovoltaics, hydropower, energy storage, and energy efficiency. It will also continue to support the growth 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 support their projects throughout their entire lifecycle.

Although the fund's primary focus remains on Europe, it may also allocate some investments to other member countries of the OECD. By replicating successful models, Mirova intends to expand its partnerships with European developers into new regions, particularly in Asia.

To support this expansion, Mirova's Energy Transition Infrastructure team, responsible for OECD funds, has expanded from 22 to 29 members in 2022. With over two decades of experience in renewable energy investments, the team manages a portfolio of €3.5 billion and has funded over 1,000 projects across 48 countries in Europe, Asia, and Africa. Mirova's Singapore office will also play a pivotal role in both fundraising and project deployment.

To meet the objectives set by the Paris Agreement, which limits global warming to 1.5°C, there must be a 55% reduction in greenhouse gas (GHG) emissions by 2030, ultimately reaching net-zero emissions by 2050. Achieving this monumental task necessitates substantial investments in clean energy, with estimates ranging from US$4–5 trillion per year worldwide by 2030.

As a company guided by a mission-driven approach, Mirova is steadfast in its commitment to contribute to the financing of a more sustainable economy. Leveraging its recognised expertise in energy transition infrastructure, the launch of MET6 represents Mirova's response to the challenges related to European energy sovereignty while reinforcing its position as a leader in the market.

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Source: Mirova

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