Grace Ashiru
Mirova, a leader in sustainable investment, recently celebrated a major achievement in its drive to accelerate the transition to clean energy across developing nations. A year after its launch, the Mirova Gigaton Fund, which aimed to gather $500 million, has successfully amassed $282 million in pledges. This milestone is a testament to the fund’s commitment to fostering sustainable projects globally.
The fund’s recent progress was significantly bolstered by a $75 million senior commitment from the European Investment Bank (EIB), contributing to the array of support received since the fund’s initial closing in March 2023. This accomplishment represents over half of the fund’s target goal, highlighting the increasing endorsement of sustainable investments within the financial community.
The Mirova Gigaton Fund aims to offer medium- to long-term debt financing for projects in clean energy, targeting emerging areas such as Africa, Latin America, the Middle East, and Asia. Its goal is to attract support from institutional investors for projects that significantly impact climate change mitigation and adaptation, contributing to social development and economic infrastructure and promoting gender equality investments.
Primarily concentrating on small and medium-sized enterprises (SMEs), the fund focuses on various sectors. These include solar home systems, agri-solar projects, solar solutions for commercial and industrial purposes, solarization of telecom towers mini-grids, and also ventures into new fields such as electric mobility, battery storage solutions, climate-smart food systems, improving energy efficiency, and pre-financing for carbon credits.
In line with the objectives of the 2X Challenge, initiated by the G7, the Mirova Gigaton Fund is dedicated to improving women’s lives in developing countries. This commitment includes providing female entrepreneurs with easier access to financial resources, enhancing women’s access to renewable energy, promoting fair and high-quality employment opportunities, and supporting the success of female-led businesses.
Furthermore, the European Investment Bank has invested significantly in this initiative. Additionally, Mirova has announced a €5 million junior investment through the Luxembourg-EIB Climate Finance Platform. This initiative aims to encourage investment from both the public and private sectors into companies that significantly impact emerging markets, specifically those focused on combating climate change and implementing mitigation strategies.
The Mirova Gigaton Fund has lent its support to several key projects, including SunCulture, which supplies solar-powered irrigation systems to small-scale farmers in Kenya; Solar Panda, a provider of solar systems for homes; and Energy Vision, which delivers renewable energy solutions in Gabon and Nigeria.
As momentum builds around the Mirova Gigaton Fund, its achievements underscore the critical role of private investment in advancing sustainable energy solutions in developing countries. The fund’s efforts to foster gender equality and its adherence to international frameworks like the 2X Challenge demonstrate its commitment to environmental sustainability and the positive impact on communities it serves.
