Japanese conglomerate Mitsubishi Corporation announced today the launch of the Marunouchi Climate Tech Growth Fund, a new fund aimed at investing and commercializing developing climate tech-related startups, with a primary focus on those providing decarbonization solutions.

The fund has raised $400 million of capital commitments from investors at its first close, with plans to reach up to $1 billion by its final closing.

The new fund will be managed by general partner Marunouchi Innovation Partners, a company established by Mitsubishi, who holds a 90% stake in the company, and by Korea-based investor Pavilion Private Equity, and MUFG Bank with approximately 5% each.

 In a statement announcing the launch of the new fund, Mitsubishi said:

“The field of climate tech has raised expectations with respect to accelerated development and application of a wide range of cutting-edge, net-zero technologies and solutions. With more funding crucial to meeting those expectations, the demand for climate tech investments is likely to grow over the medium to long term.”

Mitsubishi said that in addition to boosting the valuation of its climate tech startups, the company aims to help investee companies commercialize, scale and rollout their cutting edge technologies, and leverage the sponsors’ industry and business networks, to help support decarbonization and the transition to a carbon-neutral society.