Mirova Launches €2 Billion Energy Transition Infrastructure Fund
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Mirova, an affiliate of Natixis Investment Managers dedicated to sustainable finance, announces the project launch of Mirova Energy Transition 6 (MET6), its sixth strategy dedicated to energy transition infrastructure, aiming to raise up to €2 bn. This new vintage will continue to support decarbonization, mainly in Europe, where the need for diverse renewable energy sources has never been greater.
Mirova Energy Transition 6 (MET6) will help to meet the financing needs for resilient infrastructure that is essential to the decarbonization of energy production and consumption. MET6 will build on the success of previous Mirova’s energy transition funds and will retain flexible investment approaches – majority or minority stakes and equity financing or subordinated debt – drawing on the solid technical expertise of its teams and their strong relationships with established players in the industry. The new investment strategy succeeds Mirova Energy Transition 5 (MET5): launched in February 2021, the fund exceeded its target, raising 1.6 billion euros in less than 18 months.
This new strategy will aim to finance proven technologies (onshore and offshore wind power, photovoltaics, hydropower, storage and energy efficiency) while continuing to support the development of low-carbon electric mobility and hydrogen. The MET6 team will seek to identify project promoters and provide them with the financial resources to support their development phase, throughout the projects’ entire life cycles.
While the fund’s core deployment target remains Europe, part of the investments could be made in other OECD member countries. By duplicating proven models, Mirova aims to extend the partnerships forged with European developers in new regions, notably in Asia.
To support this growth, Mirova’s Energy Transition Infrastructure team, which works on OECD funds, now employs 29 people (up from 22 in 2022). With over 20 years’ investment experience in renewable energy, the team manages €3.5 billion and has financed over 1,000 projects in 48 countries in Europe, Asia and Africa. It will be supported by Mirova’s Singapore office in both its fundraising and deployment.
“We are proud to continue our investments with this new vintage, and to offer it to institutional investors wishing to contribute to the fight against global warming. 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. As a responsible investor, Mirova is pursuing its commitment to investment solutions that aim to combine returns with a positive impact on society” said RAPHAËL LANCE, Managing Director of Energy Transition Funds at Mirova
To ensure that global warming does not exceed 1.5°C, as set out in the Paris Agreement, greenhouse gas (GHG) emissions must be reduced by 55% by 2030 and reach net zero emissions by 2050. To achieve this, massive investment in clean energies is required, in the order of US$4-5,000 billion per year worldwide by 2030.
As a mission-driven company, Mirova is committed to contributing to the financing of a more sustainable economy, through its recognized experience in energy transition infrastructure. With the project launch of MET6, Mirova is responding to the challenges of European energy sovereignty and reinforcing its position as a market leader.