M&G’s impact investing unit responsAbility Investments announced today that it has raised over $350 million for its Asia Climate Strategy, aimed at actively contributing to CO2 reduction in Asia through targeted investments in low-emission technologies.

Launched in November 2023, the strategy was established with a target to reach $500 million, and a goal to achieve 16 million tons of CO2 emissions reductions over lifetime of its assets. With the announcement of the new closing, responsAbility said that the fund has outpaced its initial private sector capital mobilization targets, and is on track to reach its $500 million goal this year.

According to responsAbility, the third closing included commitments of $100 million from institutional investors, bringing total private sector commitments in the strategy to over $200 million, well over half of total volume, while public and development finance institution contributions reached $154 million.

Key areas of investment for the fund include sectors such as renewable energy, battery storage and e-mobility, energy efficiency, and the circular economy. According to responsAbility, the strategy aims to help mobilize capital for Asia’s energy transition, with the region accounting for more than 50% of global CO2 emissions, while also anticipating a significant increase in energy demand by 2050.

Stephanie Bilo, Chief Client & Investment Solutions Officer at responsAbility, said:

“Financing the energy transition in emerging markets like Asia requires close collaboration between the public actors and the private sector. Our strategy and blended finance structure provides institutional investors with access to attractive, risk-adjusted investment opportunities that also contribute significantly to decarbonizing the region.”