Carlyle Group Inc is seeking at least $1.6 billion for its second private equity fund that will invest in assets focused on renewable energy and sustainability, according to people familiar with the matter.

The Washington, D.C.-based firm began amassing capital this year for the new fund, dubbed Carlyle Renewable & Sustainable Energy Fund II, the sources said. If it meets its fundraising target, it would be double the size of its predecessor fund, the Carlyle Renewable & Sustainable Energy Fund, which had collected $800 million from investors, the sources added.

A Carlyle spokesperson declined to comment.

The renewable energy and sustainability sector encompasses battery technology as well as power generation from solar and wind. It also includes companies that aim to reduce their carbon footprint in the food and agriculture industry. Private equity firms have raised $40.5 billion for impact investments, which includes the renewable energy and sustainability sector, as of this August, according to data provider Pitchbook.

Carlyle has been increasing its renewable energy and sustainability sector investments. In November, it invested $350 million to acquire a majority stake in U.S. renewable energy developer Aspen Power Partners and launched Telis Energy which aims to develop clean energy projects in Europe.

In August, Carlyle invested an undisclosed amount in green hydrogen developer Eneus Energy Ltd alongside Singapore’s sovereign wealth fund GIC. Carlyle said last year it would invest up to $700 million into a platform called Copia Power for “utility-scale sustainable infrastructure” across the United States.

Carlyle‘s renewable energy and sustainability investments are part of its infrastructure platform, which is led by Macky Tall and Pooja Goyal and has $15 billion in assets under management spread across power, energy, transportation, digital, water and renewable energy sectors.

Reuters