Mirova is planning to raise a billion euros for its fifth fund dedicated to financing energy transition infrastructure.

The Natixis Asset Management subsidiary said the Mirova Energy Transition 5 Fund (MET5), which is still in its project phase, follows the Mirova Eurofideme 4 fund which raised €859m in 2018.

The manager said MET5, which will target over €1bn fundraise should become operational by the end of the first quarter of 2021.

The Eurofideme 4 was invested over the past two years, the manager said and the latest fund is expected by continuing to focus on renewable energy and low-carbon mobility sectors.

MET5 is also expected to pursue the work commenced by fund 4 in prospecting and investing in the low-carbon mobility sector, notably to support the growth of the electric vehicle sector and the emergence of hydrogen.

MET5 will be able to invest outside of Europe. This geographical diversification will involve up to 10% of the fund’s assets and will target projects located in OECD member countries, Mirova said.

Raphaël Lance, head of Mirova’s energy transition infrastructure funds, said renewable energy represents 20% of overall energy consumption in Europe.

By 2030, this should rise to 32%, Lance said, adding that an investment of €1.7trn over the next ten years will be necessary to achieve this objective.

“As a responsible investor, we will continue to provide greater capital to sustainable and resilient infrastructure, and to give institutional investors the opportunity to play their part in the fight against climate change.”

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