Sustainable investment manager Mirova revealed that its Mirova Gigaton Fund, aimed to expedite the shift to clean energy in emerging markets, has garnered $282 million in commitments. This achievement represents over half of the fund’s $500 million goal a year after its launch. Recent contributions, including a $75 million senior commitment from the European Investment Bank (EIB), have reached this milestone since the fund’s initial closing in March 2023.
The primary objective of the Mirova Gigaton Fund is to furnish medium- to long-term debt financing for clean energy initiatives, particularly in emerging regions like Africa, Latin America, the Middle East, and Asia. Its mission is to rally support from institutional investors for impactful endeavours related to climate mitigation and adaptation, social development, economic infrastructure, and gender equality investments. The fund predominantly focuses on small and medium-sized enterprises (SMEs), directing attention to sectors such as solar home systems, agri-solar, commercial and industrial solar, telecom tower solarization, mini-grids, and promising areas like e-mobility, battery storage, climate-smart food systems, energy efficiency, and carbon credit pre-financing.
Aligned with the G7-founded 2X Challenge initiative, the fund strives to enhance the well-being of women by facilitating access to finance for female entrepreneurs in emerging markets, increasing women’s access to clean energy, fostering equitable and quality employment, and supporting entrepreneurial success.
In addition to the EIB’s $75 million commitment, it also disclosed a €5 million catalyst junior investment through the Luxembourg-EIB Climate Finance Platform. This platform seeks to stimulate investments from both public and private sectors into high-impact companies operating in emerging markets involved in climate change and mitigation projects.
Projects already backed by the fund include SunCulture, a Kenya-based provider of solar and irrigation systems for smallholder farmers; Solar Panda, a home solar system provider; and Energy Vision, a clean energy solutions provider focused on Gabon and Nigeria.