Alongside MUFG Bank and other partnering organizations, Mitsubishi Corp. is set to launch strong investments into decarbonization funds in Japan. Set to be the largest investment process in Japan for decarbonization efforts, the investment plan will begin with $1 billion in funds. These heavy funds are being allocated into technology start-up companies, specifically in the fields of offshore wind turbines and sustainable aviation fuel. The primary attention and engagement will be on the sectors in Europe and the US, focusing on the main established start-ups. With their ultimate goal of advancing companies' decarbonization efforts, they plan on aiding partnerships between these tech start-ups and Japanese and other Asian companies through their global network.
The announced fund will establish about 20 investments in start-ups by April of 2029–individual investments will range from $10 million to $100 million. Achieving the milestone investment, Mitsubishi will be funding approximately $700 million of the total, expecting an increase to $1 billion by April 2024. The start-ups will mainly be those that have not been commercialized just yet.
Shocking allocation numbers have been brought forth–in order to reach net-zero by 2025 there needs to be an annual average of $2 trillion invested into these start-ups. Then, this number will rise to $4 trillion annually once we hit 2026 until 2030. These numbers are extremely aggressive when it comes to outward investments, especially in the field of sustainability. Many countries, companies and individuals have been less likely to spend that amount on environmental needs in previous years–maybe due to instability with pledged outcomes, others may not have the capacity to ‘go green,’ or many don’t want to make the switch over to renewable resources because it won’t bring in as high of revenue. But, Japan will receive high praises if these milestone investments pull through and the start-ups actually have a lasting positive effect on the planet.
In addition to offshore wind turbines and sustainable technology investments, Mitsubishi plans on providing opportunities for collaboration with companies. This can push proactive and productive ideas onto other companies that can also fully flesh out environmental effort plans. Mitsubishi has already invested in numerous renewable energy plans, one being Breakthrough Energy Catalyst created by Bill Gates, with a $100 million investment in 2020.
