SPARX Group Co., Ltd. ("SPARX") today announced that, in November, its subsidiary, SPARX Asset Management Co., Ltd., began managing the Mirai Renewable Energy Fund ("the Fund"), which aims to invest in new renewable energy power facilities. SPARX issued a joint press release with Toyota Motor Corporation ("Toyota") regarding the Fund on September 19. The Fund first received financing from Toyota, followed by Chubu Electric Power Co., Ltd. ("Chubu Electric"), Sumitomo Mitsui Banking Corporation ("SMBC") and Mizuho Bank, Ltd. ("Mizuho Bank"). The Fund began operations with JPY 23.6 billion in capital, aiming to grow to JPY 30 billion.
The UN's Intergovernmental Panel on Climate Change (IPCC) released a report in October, by 2030, global temperatures would rise by 1.5 degrees higher prior to the industrial revolution, warning of the growing risk of heavy rains, flooding, drought, and other abnormal weather. In order to keep temperatures from rising by more than 1.5 degrees, the report highlighted the need to reduce global carbon dioxide (CO2) emissions by 45% compared to 2010 levels by 2030 and to reduce these emissions to virtually zero by 2050. To reach these levels, the report's analysis indicates that the energy sector must raise the global volume of power generated through renewable energy by 70% to 85% by 2050.
In addition, the Government of Japan shows the policy to aim for the main power supply of renewable energy with a view to 2050 in "Fifth Energy Basic Plan".
Chubu Electric, which newly decided to invest in the Fund, has been promoting ESG management along with the Chubu Electric Power Group to enhance the corporate value of the Group continuously. Chubu Electric also works on activities to reduce CO2 emissions by aggressively developing the renewable energy sources, and by making efforts in all our business phases throughout the entire value chain from the power generation to sales.
Chubu Electric believes this invest could make more contributions to the increase of renewable energy sources and the reduction of CO2 emissions in Japan.
SMBC aims to drive renewable energy growth and use throughout Japan, by investing in the Fund, together with Toyota and other investors. As a global financial group, we hope to contribute to the development of a sustainable society to fulfill our social responsibilities.
Mizuho Bank is engaged in a range of initiatives aimed at resolving global social issues, including issues related to the environment, energy, infrastructure, public health, and food security. Investment in this Fund is part of our continued commitment to further contributing to the sustainable development of society, through initiatives such as environmentally conscious financing and investment in renewable energy projects and businesses.
SPARX boasts the largest portfolio of renewable energy power facilities in Japan, with funds investing in roughly 380 MW of solar, ligneous biomass, wind power, and geothermal development projects in 25 locations across Japan. As of September 30, 2018, these projects include 17 locations that have begun selling electricity that amounts to roughly 161 MW.To realize the lofty resolution of Japan’s various type of corporations, as an "All Japan", the Fund's basic philosophy is "driving renewable energy growth and use throughout Japan." As the backer of this philosophy, SPARX aims to further raise awareness about the global environment, while improving regional economic development and Japan's energy self-reliance.
|Basic principle||"Driving renewable energy growth and use throughout Japan"|
|Fund name||Mirai Renewable Energy Investment Limited Partnership|
|Investment targets||Domestic new renewable energy power facilities (power sources: solar, wind, biomass, geothermal, and hydraulic)|
|Investors||GP: SPARX Group Co., Ltd.
LP: Toyota Motor Corporation, Chubu Electric,
Sumitomo Mitsui Banking Corporation, Mizuho Bank
|Current size of the Fund||23.6 billion yen (As of 9th November, 2018)|
|Capital to be raised||Approximately 30.0 billion yen|
|Additional financing period||From November 1, 2018 until March 29, 2019|
|Fund period||25 years from November 1, 2018|