Japanese MUFG Bank established the Marunouchi Climate Tech Growth Fund to fuel the development of advanced technologies and solutions necessary for the realization of a carbon-neutral society
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One of Japan’s largest banks, MUFG Bank, jointly with Marunouchi Innovation Partners, Mitsubishi Corporation and Pavilion Private Equity, established the $400 million Marunouchi Climate Tech Growth Fund. Eventually, the fund is targeting a size of $800 million – $1 billion.
The initiative will invest mainly in climate-tech-related startups aiming for growth. MUFG expects strong demand for financing in the field over the medium- to long-term. As the global economies are accelerating their efforts towards a sustainable future, the development of technologies and solutions helping to transit to a carbon-neutral society will be crucial.
Although the main aim of the funding in the sphere remains solving issues related to global climate change, MUFG also sees economic potential in the initiative. Therefore, growth investments in climate-tech-related startups will allow the fund to commercialize and spread advanced technologies while increasing the investee’s corporate value.
Besides the financial infusion, the fund’s main sponsor, the Mitsubishi Corporation Group, as well as other participating investors, will contribute to the growth of promising startups with their industry knowledge and business networks.
Headquartered in Tokyo, MUFG has a global network with approximately 2,700 locations spanning across 50 countries. The bank offers numerous commercial and investment banking products and services to businesses, governments and individuals worldwide.
Asian financial companies are currently accelerating the funding in climate-related businesses and initiatives. Almost simultaneously with MUFG’s Marunouchi Climate Tech Growth Fund, Asian Development Bank (ADB) launched the Innovative Finance Facility for Climate in Asia and the Pacific program to enhance support for the region in the battle against climate change.
