Mirova has raised $282 million so far for its emerging markets climate debt fund, which has a target of $500 million, the firm said.
Launched in 2022, the Mirova Gigaton fund predates the wave of emerging markets-focused climate strategies we saw towards the end of 2023: Brookfield, TPG and BlackRock launched dedicated EM climate funds at COP28 with catalytic anchor commitments from the UAE’s $30 billion climate fund, Alterra; Investcorp’s first impact fund, Climate Solutions Partners, was also launched at COP28 and focuses on the Global South. Earlier in 2023, Leapfrog launched a climate strategy with a $600 million target. These are all private equity strategies. In private debt, ResponsAbility launched a €500 million-target climate debt fund, while Ninety One is planning an EM transition debt strategy developed with the UK’s Wiltshire Pension Fund.
Mirova’s Gigaton is a blended finance vehicle, which includes a €75 million senior commitment from the European Investment Bank and €5 million “catalyst junior investment under the Luxembourg-EIB Climate Finance Platform”, the firm said.
The Nordic Development Fund, financed by the governments of Denmark, Finland, Iceland, Norway and Sweden, committed $15 million last year.
The fund targets both climate change mitigation and adaptation for populations in Africa, Latin America, the Middle East and Asia: it provides debt to small- and medium-sized enterprises in the clean energy, community solar, energy efficiency, carbon mitigation and digitisation sectors.
“Investing in clean energy in emerging economies means investing in resilience [and] helping communities to better adapt to the impact of climate change,” EIB vice-president Ambroise Fayolle said in Mirova’s announcement.