Japan’s largest bank MUFG Bank has on Tuesday announced that it has established the Marunouchi Climate Tech Growth Fund L.P. with Mitsubishi Corporation and Pavilion Private Equity Co., Ltd.

MUFG said in a statement that the fund which has $400 million at establishment, is targeting a fund size of $800 million to $1 billion.

The fund has Marunouchi Innovation Partners Co., Ltd. as its general partner, and will invest mainly in climate-tech-related startups for growth.

In the field of climate-tech, MUFG said the development of various advanced technologies and the dissemination of solutions are necessary for the realization of a carbon-neutral society, and strong demand for financing is expected over the medium- to long-term.

Through growth investments in climate-tech-related startups, the fund aims to commercialize and spread advanced technologies owned by investees while increasing their corporate value and contributing to solving issues related to global climate change.

MUFG Bank has been supporting customers’ efforts toward decarbonization and innovative technologies.

Through the Fund, the firm will work with its main sponsor, the Mitsubishi Corporation Group, with its industry knowledge and business networks, and other participating investors to capture investment opportunities and support the growth of investee companies.

MUFG is Japan’s premier bank with a global network spanning around 50 countries.

Outside of Japan, the bank offers an extensive scope of commercial and investment banking products and services to businesses, governments and individuals worldwide.

MUFG Bank’s parent, Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups.

Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,100 locations in more than 50 countries.

The group has about 160,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing.

MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges.

MUFG sets up $100M fund with Danamon in Indonesia