Our Climate Investment Newsletter is back from hiatus with 3 weeks of deals, commitments, and important financial and scientific developments. Catch up on what you missed from the end of the year with major investments in NbS, Sustainable Aviation Fuel, and more, alongside major policy developments and financial market news.
In this Week’s Issue: $20.9 billion across 45 deals in Transition Finance ($13.4 billion), NbS ($2 billion), Carbon Removal ($646 million), Hard-to-Abate industries ($4.6 billion) and the Blue Economy ($161.7 million).
The Climate Investment Funds (CIF) has approved $34.65 million for Zambia's Nature, People, and Climate Investment Plan (ZNPC-IP). The funding will support nature-based solutions to address climate change impacts in Central, Copperbelt, and North-Western Provinces. This approval, alongside Ethiopia's similar plan, aims to tackle climate challenges through integrated environmental strategies. The investment will focus on solutions that address multiple climate change drivers.
The IDB has approved a $750 million loan to the Brazilian Development Bank (BNDES), with BNDES contributing $150 million, to establish the BID-BNDES Access to Credit Program for MSMEs in the Brazilian Amazon. The program aims to foster sustainable, productive activities, supporting job creation and income generation. Key targets include 30% of funds for women, 20% for low-carbon agriculture, and a zero deforestation policy. The program will offer MSMEs long-term loans for investments in equipment and sustainable practices to boost the region’s economy and protect the environment.
IFC issued a 2 billion Swedish krona green bond, equivalent to $184 million, to fund biodiversity and ecosystem protection projects in emerging markets. Underwritten by SEB, the bond aims to mobilize private capital for biodiversity initiatives aligned with the Global Biodiversity Framework. AP7 was the sole investor. Proceeds will support reforestation projects in Latin America and forest regeneration in Colombia.
The New York State Department of Environmental Conservation (DEC) has announced $15 million in funding through the new Community Reforestation (CoRe) Grant Program, aimed at expanding, restoring, and creating urban forested areas. The funding supports the 25 Million Trees Initiative, part of the state's broader climate and community protection goals. Grants of up to $3 million are available for municipalities, tribes, and non-profits to address urban tree canopy gaps, with special consideration for projects in disadvantaged communities. The program focuses on resilient reforestation, tree planting, and invasive species management.
Brightly, a climate-tech startup focused on converting food waste into carbon credits, raised $2.3 million in an oversubscribed seed round led by Schreiber Foods, with participation from G-Force, Collaborative Fund, Clear Current Capital, and Windsail Capital. The company's platform quantifies and monetizes methane emissions avoided by food rescue organizations, creating carbon credits that can be purchased by businesses to offset emissions. The funding will enable Brightly to scale its operations and support more food rescue efforts, addressing food waste, food insecurity, and climate change.
Pennsylvania's agricultural sector will receive nearly $1 billion in federal funding to promote climate-smart practices under the Farm Bill and Inflation Reduction Act. This funding supports initiatives such as reducing methane emissions from livestock, promoting hemp production, and empowering underserved farmers to adopt sustainable methods. The investment also focuses on marketing climate-friendly agricultural products and developing sustainable agroforestry systems.
The Global Environment Facility (GEF) approved $68 million, facilitated by FAO, to finance projects across 22 countries addressing biodiversity loss, climate change, land degradation, and pollution. The funding includes a $19 million Small Grants Program to support local initiatives and biodiversity-focused projects in Asia, the Pacific, and Latin America, alongside water and land management efforts in Kenya, Tanzania, and Liberia. Additional projects in Gambia and Vanuatu promote sustainable tourism and reduce harmful agrochemical use. Combined with $273 million in co-financing, these initiatives aim to restore ecosystems, improve practices, and mitigate greenhouse gas emissions.
Sienna Investment Managers (Sienna IM) has launched the Sienna Biodiversity Private Credit Fund, targeting €200 million ($207 million), with a €100 million ($103 million) initial commitment from Malakoff Humanis Group. The fund focuses on preserving and restoring biodiversity in Europe, addressing land transformation, pollution, and exploitation of organisms. It aims to finance companies with strong biodiversity practices, drawing from sectors like mid-market corporate financing, real estate debt, energy transition, and the public sector. Each financed company undergoes an in-depth analysis based on expertise from environmental solutions company Habitat.
SP Ventures has reached a $22 million first close for its third fund, AGVIII, which targets $80 million. The fund will invest in startups focused on improving the environmental impact of food production and distribution, emphasizing bio-based crop protection, agrifintech, supply chains, and education. SP Ventures aims to address Latin America's agrifoodtech needs, including financing, climate resilience, and agricultural education. The fund will also explore AI in biologicals and traceability innovations.
Momentum Venture Management secured a €25 million ($25.9 million) commitment from the European Investment Fund (EIF) for its third fund, focusing on early-stage investments in climate tech companies, including the blue economy. The fund, targeting €52.7 million ($54.7 million), will back 20 startups in the EU and Nordics, concentrating on food and agriculture, energy transition, and industrial decarbonization. Investors also include Norwegian family offices and pension funds, with EIF's backing supported by the European Commission's InvestEU program.
DP World has issued a $100 million Blue Bond, the first corporate Blue Bond from the Middle East and North Africa, to fund sustainable projects in marine transportation, port infrastructure, marine pollution, and biodiversity conservation. The bond aligns with DP World’s Ocean, Decarbonisation, and Water Strategies, targeting UN SDG 14 (Life Below Water) and SDG 6 (Clean Water and Sanitation). Eligible projects include alternative fuels, sustainable ports, marine ecosystem restoration, and pollution control. This issuance marks DP World’s second entry into sustainable finance, following its $1.5 billion Green Sukuk in 2023.
The Biden administration has announced the final $20 million in grant funding for NOAA Fisheries' Coastal Habitat Restoration and Resilience Grants targeting Tribes and underserved communities. The funding supports climate resilience and habitat restoration projects, with awards ranging from $75,000 to $2 million, and 15% reserved for U.S. federally recognized Tribes and Alaska Native Corporations. This marks the third and final round of grants under the Bipartisan Infrastructure Law, which has supported numerous habitat restoration initiatives.
The Australian and South Australian governments have allocated AUD 26.2 million ($16.7 million) for Phase 2 of the Healthy Coorong, Healthy Basin program, bringing total funding to AUD 77.8 million ($49.8 million) since 2018. The initiative focuses on improving the ecological health of the Coorong and Lower Lakes through infrastructure design, on-ground restoration, and collaboration with local communities and First Nations. The program aims to enhance water quality, support biodiversity, and maintain the region's social, cultural, and economic values, including its importance to tourism and commercial fishing.
The Korean government has pledged 450 trillion won ($309 billion) in green finance by 2030 to support the country's transition to a low-carbon economy and achieve its 2050 carbon neutrality goals. Announced during the carbon neutrality grand alliance declaration ceremony, the investment will drive decarbonization in industries contributing 36% of domestic emissions, promote technological innovation, and foster new markets like clean methanol. Additionally, 2.7 trillion won ($1.8 billion) will be allocated by 2025 for climate change response technology development.
Financial commitments to South Africa’s Just Energy Transition Investment Plan have increased to nearly $14 billion, up from an initial pledge of $8.5 billion by the International Partners Group and multilateral organizations. The plan aims to support the country's transition to cleaner energy, but the program has faced criticism for delays in fund disbursement.
The Asian Infrastructure Investment Bank (AIIB) has approved $250 million in financing to support Uzbekistan's climate transition. The program focuses on enhancing climate governance, improving water and land resource management, and accelerating the shift to low-carbon solutions in sectors like energy and transport. It also aims to promote sustainability practices, and climate risk disclosures, and expand renewable energy efforts, benefiting vulnerable communities. The initiative aligns with Uzbekistan's "New Uzbekistan 2030" strategy and its updated Nationally Determined Contribution (NDC).
The USDA announced $78.3 million in partially forgivable loans under the Powering Affordable Clean Energy (PACE) program to fund clean energy projects in rural areas, including solar, hydroelectric, and battery storage systems. Recipients include projects in Maryland, Ohio, Vermont, Washington, and American Samoa, collectively powering nearly 7,000 households. Funded through the Inflation Reduction Act, PACE supports renewable energy development, job creation, and affordable electricity, with up to 60% loan forgiveness for eligible initiatives. To date, USDA has advanced 34 projects under PACE, totaling over $995 million in loans.
The African Development Bank (AfDB) approved a $30 million equity investment in the Africa Finance Corporation’s (AFC) Green Shares initiative to support climate action across Africa. The initiative will fund renewable energy and climate resilience projects, such as wind and solar installations in Djibouti and Egypt and energy storage systems in Cabo Verde. AFC will leverage this investment to attract additional capital for transformative infrastructure projects, addressing Africa’s $170 billion annual financing gap. The partnership aims to expand clean energy access, create 1,600 jobs by 2031, and foster inclusive economic growth.
Nexus W2V secured $140 million, including $75 million from Orion Infrastructure Capital, to build the Kingsbury Bioenergy Complex in Indiana. The facility will process 200 tons of organic waste daily, producing renewable natural gas (RNG), compost, and biochar, with RNG integrated into Northern Indiana’s pipeline. Set to be operational by 2026, the project will enhance the region's renewable energy supply, create 35 local jobs, and support waste diversion and emissions reduction.
The African Development Bank's Sustainable Energy Fund for Africa (SEFA) is investing $10 million in the Persistent Africa Climate Venture Builder Fund (ACV Fund) to bolster climate technology entrepreneurship in Sub-Saharan Africa. This investment aims to unlock $70 million for early-stage ventures in solar, energy efficiency, electric mobility, agritech, and circular economy, with a focus on supporting African and women-led businesses. The initiative is expected to catalyze 200 MW of renewable energy, improve energy access for 420,000 households, and create over 66,000 jobs while reducing 17 million tons of CO2e emissions.
The Portland Clean Energy Fund has allocated $300 million to eight large-scale projects aimed at reducing carbon emissions, boosting energy efficiency, and creating jobs over the next five years. The projects include solar and battery storage for low-income households, community solar initiatives, energy-efficient upgrades for schools, net-zero housing, and municipal fleet decarbonization. These grants are part of the city’s $1.5 billion Climate Investment Plan, which also focuses on workforce development and infrastructure improvements.
IFC has invested $20 million in Sol Agora, a fintech offering long-term financing for micro and mini-distributed solar generation in Brazil. This partnership aims to expand access to solar energy, helping Brazil diversify its energy mix, reduce carbon emissions, and improve energy efficiency for households and small businesses. IFC's investment supports Sol Agora’s green financing platform, which has raised over BRL 1.4 billion ($268.8 million) to date.
The U.S. Department of Agriculture (USDA) finalized $4.37 billion in clean energy investments for rural electric cooperatives through the Empowering Rural America (New ERA) program. This funding, part of the Biden administration's Inflation Reduction Act, will support renewable energy, storage, transmission, and emissions reductions for 10 cooperatives across multiple states, benefiting over 5.3 million rural customers. The investments are expected to create 5,000 jobs and reduce annual climate pollution by over 11 million tons.
Crusoe has raised $600 million in a Series D round to expand its clean energy-powered AI cloud platform, valuing the company at $2.8 billion. The company aims to address growing AI-driven data center energy demands by utilizing surplus clean energy, flare gas, and renewable sources to power scalable, eco-friendly computing infrastructure. The funds will support Crusoe’s expansion, including new data centers and its AI-optimized cloud platform, as the company scales operations across nine states and three countries.
Norway's Morrow Batteries secured a 1.5 billion crown ($134 million) loan from the Norwegian Government's Innovation Norway to scale up battery production at its Arendal plant, the country's first gigawatt LFP battery factory. The funding supports Norway's battery strategy, leveraging green power and proximity to European markets to reduce reliance on Chinese supply. Morrow aims to start production in 2025, with a 5.5 GWh delivery agreement over seven years and backing from investors like A Energi, ABB, Siemens, and Nysnø.
The EBRD is providing a $275 million syndicated loan to support the construction and operation of Africa's largest wind farm in Egypt's Gulf of Suez region. The 1.1GW project, co-financed by multiple development institutions, will generate over 4,300 GWh annually and reduce CO2 emissions by over 2.2 million tonnes per year. Part of Egypt's Nexus of Water, Food & Energy (NWFE) program, this wind farm advances the country's Paris Agreement commitments and renewable energy goals.
The EPA and DOE announced $345 million for projects in Colorado and Wyoming as part of an $850 million nationwide initiative to reduce methane emissions in the oil and gas sector under the Inflation Reduction Act. Awardees include Colorado State University, Pioneer Energy Inc., and Blue Mountain Operations, focusing on emissions monitoring, methane-free technologies, and workforce development. The program aims to support small operators, Tribal groups, and local communities with advanced mitigation technologies, improving air quality and operational efficiency.
Bangladesh has secured $900 million in financing from the World Bank to advance environmental sustainability, inclusive growth, and climate resilience. The $500 million Second Bangladesh Green and Climate Resilient Development Credit supports policy reforms for green growth, air pollution reduction, and energy efficiency. The $400 million Resilient Urban and Territorial Development Project will enhance climate-resilient infrastructure, benefiting 17 million people across seven city clusters. The funds will also promote gender-responsive urban infrastructure and sustainable water, sanitation, and transport systems.
The Global Environment Facility (GEF) has approved $204.3 million to support UNDP's climate and nature projects across 121 countries, aimed at tackling climate change, and nature loss, and promoting social inclusion. This funding will benefit over 9.4 million people, including 4.8 million women, and will help restore over 3 million hectares of land. It will also leverage an additional $1.9 billion in co-financing for scalable, community-driven interventions, with a focus on indigenous groups and marginalized communities.
Emirates Global Aluminium (EGA) secured a green loan (at an undisclosed amount) to finance its acquisition of an 80% stake in US-based aluminum recycling firm Spectro Alloys, which produces secondary foundry alloys with a capacity of 110,000 tonnes annually. The acquisition enhances EGA's US business and supports its expansion into aluminum recycling, a key part of its strategy to meet the growing demand for low-carbon aluminum. The green loan, arranged by Citi, ING, and Standard Chartered, provides access to broader liquidity for low-carbon projects.
Poland’s state development fund, PFR SA, plans to invest up to 3 billion zloty ($731 million) annually in energy projects, including offshore wind, power storage systems, and gas-fired plants. Acting as an anchor investor, PFR aims to boost local demand for green bonds, enabling higher issuances through a multiplier effect. The fund also supports Poland’s energy transition from coal, with potential involvement in nuclear energy development.
The USDA has awarded a $200 million grant to Nebraska Electric Generation & Transmission Cooperative (NEG&T) under the Empowering Rural America Program (New ERA). The funding will support the procurement of 725 MW of wind and solar energy in three Nebraska counties, providing electricity for 170,000 homes annually and reducing greenhouse gas emissions by 2.2 million tons per year. The project, which aligns with the Justice40 Initiative, will create up to 425 jobs and enhance clean energy accessibility for rural areas.
KoBold Metals, a US-based company leveraging AI for mineral exploration for the energy transition, raised $537 million in equity funding at a $2.96 billion valuation. Led by Durable Capital Partners LP and T. Rowe Price funds, the round also saw participation from Breakthrough Energy Ventures and Andreessen Horowitz. The funding will support exploration, R&D, and advancing high-potential projects, including the Mingomba copper mine in Zambia.
Equinor secured over $3 billion in financing for its Empire Wind 1 offshore project near New York, set to power 500,000 homes with 810 MW capacity by 2027. The project, under full Equinor ownership since 2024, has a 25-year agreement with NYSERDA at $155/MWh and total expected investments of $5 billion. Construction is ongoing, with the South Brooklyn Marine Terminal serving as the operations hub, becoming the largest offshore wind port facility in the U.S.
European venture capital firm 360 Capital has raised €140 million ($144 million) for its 360 Life II fund, targeting technologies in renewable energy, hydrogen, and pollution and waste reduction. Key commitments include €40 million ($41 million) from Italian utility A2A and €10 million ($10.3 million) from electrochemistry company De Nora. The fund's launch aligns with rising global urgency to address climate change and follows data showing 2024 as the hottest year on record.
Astana International Exchange (AIX) facilitated the issuance of debut green bonds by PlanDem LLC, the first issuer from the Kyrgyz Republic, under a Green Wholesale Bond Programme. PlanDem, developing over 1.6 GW of solar and wind power projects globally, raised funds to support renewable energy initiatives in emerging markets. The first tranche, valued at 370 million yuan ($50 million), offers a floating interest rate tied to 1-Year SHIBOR + 1.7%, with maturity in 2054 and quarterly coupons starting in the 10th year.
Greening Group, a Spanish renewable energy company, has launched its first green bond program on Spain's MARF market, aiming to raise up to €30 million ($30.8 million). The bonds, rated BBB- (Investment Grade) by Ethifinance, are secured by a portfolio of renewable energy projects and will support the company's business plan for 2024-2026. Greening plans to expand its renewable energy capacity to 800 MW by 2026, focusing on geographic and technological diversification.
California issued $1.3 billion in green bonds through the California Community Choice Financing Authority to finance renewable energy purchases. The Clean Energy Project Revenue Bonds Series 2024H, with maturities ranging from 2031 to 2056, offer 5% coupons and yields between 3.42% and 3.62%. Proceeds will cover the upfront costs of long-term renewable electricity delivery, backed by energy sales revenues.
The U.S. Department of Energy’s Office of Clean Energy Demonstrations has opened the application process for $1.8 billion in funding to support direct air capture (DAC) projects. This funding aims to advance commercial-scale DAC technologies across the U.S., with the creation of four regional DAC hubs. Awards will be made in three categories: Infrastructure Access Platforms (up to $250 million), Mid-Scale Commercial DAC Facilities (up to $50 million, and Large-Scale Commercial DAC Facilities (up to $600 million). The application deadline for full submissions is July 2025, with award announcements expected in December 2025.
The US Department of Energy has signed a cooperative agreement with the National Cement Co of California (Vicat Group) to fund the Lebec Net Zero project at its cement plant in California. The agreement includes up to $500 million in funding, covering 50% of the investment, to develop a CO2 capture, transport, and storage system aimed at reducing emissions by 950,000 tons annually. This funding will support National Cement's decarbonization efforts, with the project marking a step in advancing sustainable cement production.
Frontier coalition, including Google, H&M, and Stripe, has agreed to purchase $80 million worth of carbon credits from two firms using technologies to capture emissions. CO280 uses oil industry carbon capture technology at paper mills, while CREW adds limestone to water at sewage plants to capture CO2. These deals aim to support the development of scalable, cost-effective carbon removal technologies, with credits priced between $214 and $447 per ton. The purchases focus on driving the integration of carbon removal into industrial processes.
Bill Gates’ Breakthrough Energy Catalyst program has committed $40 million to Deep Sky Corp., a Montreal-based carbon removal startup. Deep Sky aims to build large-scale facilities, including a $70 million direct-air capture plant in Alberta, to remove millions of tons of CO2 from the atmosphere and store it underground. The company has raised over C$130 million ($90 million from investors, including Canadian banks and the Quebec government), and plans to deliver carbon removal credits starting in 2025.
The National Science Foundation has launched the $26 million Carbon Utilization Redesign for Biomanufacturing Decarbonization (CURB) Engineering Research Center, led by Washington University in St. Louis, in partnership with seven universities and 21 industry collaborators. CURB ERC will develop hybrid electro-bio CO2 utilization technologies to convert carbon dioxide into liquid chemical intermediates for biofertilizers, biochemicals, and biomaterials. The project aims to reduce greenhouse gas emissions, advance sustainable manufacturing, and evaluate the market viability and life cycle impact of new products.
Dutch company Ada Green Hydrogen Investments BV plans to invest over $100 million in a green hydrogen and ammonia initiative in Paraguay. The project, named Honest Ada Hydrogen Investment EAS, will begin construction in 2024 and is expected to be operational by 2028. Based in Villa Hayes, the project aims to enhance regional energy security, create jobs, and foster technological advancements in renewable energy.
Pengerang Energy Complex (PEC) has secured $3.5 billion in financing for a low-carbon petrochemical project, from export credit agencies across Asia, Europe, and North America, along with Islamic financing from the Islamic Development Bank. The funds will support the development of a $5.3 billion low-carbon petrochemical facility expected to produce 2.6 million metric tonnes of aromatic products and 3.0 million metric tonnes of related energy products annually. Construction is set to begin in mid-2025, with operations expected by the fourth quarter of 2028.
Fortera and Sumitomo Corporation have entered a strategic partnership (at an undisclosed amount) to introduce Fortera’s low-to-zero-carbon ReCarb® cement technology to Asia, focusing initially on Japan. The technology transforms industrial CO2 into sustainable, high-performance green cement, reducing carbon emissions by 70% compared to traditional cement. Fortera’s process can be integrated into existing cement plants, offering a cost-effective path to large-scale decarbonization. The partnership aims to position Fortera for widespread adoption in Asia, the largest cement market globally.
Air New Zealand has purchased over 30 million liters of sustainable aviation fuel (SAF) from Neste, at an undisclosed amount, to be supplied from Los Angeles and San Francisco through February 2026. The SAF, produced from renewable waste materials, offers up to 80% carbon emission reductions compared to fossil jet fuel and will account for 1.6% of the airline’s FY25 fuel use, meeting its SAF target for the year. This marks a fourfold increase from FY24 and aligns with Air New Zealand’s goal of 10% SAF usage by 2030, as the airline explores domestic SAF production options.
Hoffmann Green Cement Technologies has signed a strategic licensing agreement with Cemblend Ltd, covering the UK and Ireland, as part of its international expansion strategy. The deal includes up to €2 million ($2.07 million) in entry fees and annual royalties tied to Hoffmann's clinker-free cement sales and premix commercialization. This agreement builds on their partnership since 2022 and supports the production of sustainable materials in the UK to advance construction decarbonization goals.
Moeve and easyJet have signed a six-year agreement starting in 2025 to supply sustainable aviation fuel (SAF) for easyJet's Spanish network, at an undisclosed amount. SAF will be produced at Moeve's La Rábida Energy Park using used cooking oils, with plans for expanded production capacity by 2026 as part of a new biofuels complex. This aligns with Moeve’s goal of producing 2.5 million metric tons of biofuels annually by 2030, including 800,000 metric tons of SAF.
Fervo Energy secured $255 million in funding, including $135 million in equity led by Capricorn’s Technology Impact Fund II and $120 million in debt from Mercuria, to advance geothermal energy projects. The funding supports the development of Cape Station in Utah, a project using enhanced geothermal systems (EGS) to provide 24/7 carbon-free power, with the first phase expected to begin in 2026. Fervo’s approach combines horizontal drilling and distributed fiber optic sensing to create scalable and cost-effective clean energy solutions.
IFC has provided a €75 million ($77 million) green loan to Sococim, Senegal’s largest cement manufacturer, to modernize its operations and adopt low-carbon technologies like solar and refuse-derived fuels. The investment aims to cut 312,000 tons of CO2 emissions annually by 2030, improve energy efficiency, and create approximately 4,700 jobs along the value chain. The project supports Senegal’s housing and infrastructure needs while reducing the carbon footprint of cement production.
Comstock has entered into a technology cooperation agreement with Emerging Fuels Technology (EFT), at an undisclosed amount, to integrate EFT’s gas-to-liquid process into its renewable fuel production. Comstock’s existing technology yields up to 125 gallons per metric tonne of feedstock, and the partnership aims to boost yields to over 140 gallons per metric tonne, enhancing the production of sustainable aviation fuel. This aligns with Comstock’s plans for a 75,000tpa demonstration facility and a commercial-scale operation of one million metric tonnes annually.
Avina Clean Hydrogen will invest $820 million to develop a sustainable aviation fuel (SAF) production facility in Southwest Illinois, utilizing KBR’s alcohol-to-jet technology. The facility is expected to produce up to 120 million gallons of ASTM-certified SAF annually, preventing 25 million metric tons of carbon emissions over its lifespan. The project will create 157 jobs and benefit from Illinois' Reimagining Energy and Vehicles (REV) incentives.
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The European Green Bond Standard (EUGBS), effective 21 December 2024, is expected to drive significant issuances from entities including sovereigns, financial institutions, and corporates, leveraging the €249 billion ($258 billion) taxonomy-aligned investments recorded in 2023. The EUGBS mandates alignment with the EU taxonomy for proceeds, offering minimal compliance burdens for banks and corporations with sustainable pipelines. Research by IEEFA highlights the potential for public entities, such as the EU's NextGeneration Green Bond program, to lead uptake by issuing benchmark bonds and fostering broader market participation.
The European Union faces pressure from some member states to weaken climate policies, with governments citing concerns over economic impacts ahead of upcoming elections. Denmark's climate minister Lars Aagaard expressed concern over efforts to revisit or delay green measures, including the anti-deforestation law and green farming policies. Countries like Italy, the Czech Republic, and Poland are seeking adjustments, such as delaying carbon market initiatives and revising the 2035 combustion engine car ban. Aagaard warned that backtracking on these laws could undermine the EU's credibility in climate investments.
The U.S. government has finalized its first aquaculture development plan in 40 years, aimed at growing the domestic aquaculture sector. The plan, led by the White House National Science and Technology Council, focuses on investing in infrastructure, establishing R&D programs, and supporting workforce development. It includes four key goals: engagement and literacy, infrastructure development, industry investment, and market expansion. This plan complements previous efforts to enhance research, improve regulatory efficiency, and promote sustainable seafood production.
The European Commission has released three working documents to promote sustainable aquaculture in the EU. 1. Access to Space and Water for Freshwater and Land-Based Aquaculture, addresses the challenges of securing land and water for inland aquaculture, complementing earlier guidelines on marine aquaculture. 2. Climate-Change Adaptation in the EU Aquaculture Sector, offers guidance on preparing climate adaptation plans and features good practices for responding to climate impacts. 3. Energy Transition in the EU Aquaculture Sector, outlines energy use in aquaculture and strategies for decarbonization, including examples of EU-funded projects. These focus on improving access to space and water for inland aquaculture, preparing climate adaptation plans for the sector, and providing guidelines for decarbonizing energy use in aquaculture operations. The documents offer recommendations, good practices, and examples of EU-funded projects to support aquaculture sustainability, with further updates and training planned for EU Member States.
The European Solar Manufacturing Council (ESMC) has released recommendations for strengthening the EU's Net Zero Industry Act (NZIA) to better support solar manufacturers. While praising the NZIA, ESMC highlights gaps, particularly in achieving the EU's 30GW manufacturing goal by 2030. Recommendations include expanding support for projects outside state tenders, adjusting VAT and interest rates for European products, and providing operational support to compete with global manufacturers. ESMC also calls for a Climate Tech Sovereignty Fund and the extension of the Carbon Border Adjustment Mechanism (CBAM) to include solar modules.
The UK government has signed its Sustainable Aviation Fuel (SAF) mandate into law, requiring 2% of jet fuel to come from sustainable sources by 2025, increasing to 22% by 2040. It has also launched the Jet Zero Taskforce, which includes airline CEOs, government officials, and academics, to drive aviation decarbonization efforts such as SAF production, zero-emission flights, and efficient aviation systems. The task force will also address aviation's broader environmental impacts, including greenhouse gas removals and vapor trails. Additionally, £450,000 ($562,000) has been allocated to support SAF adoption in developing countries and offset international aviation emissions.
The UK is integrating the UN's CORSIA scheme into its domestic Emissions Trading Scheme (UK ETS) to reduce aviation emissions, aiming for net-zero aviation by 2050. Airlines must offset emissions exceeding 2019 levels using carbon credits or sustainable aviation fuels (SAFs). Non-compliance with CORSIA could incur a £100 ($127) per ton fine. The UK faces challenges balancing both systems and ensuring fair implementation while supporting SAF development as a key decarbonization solution.
Ethiopia’s House of People’s Representatives has passed a proclamation establishing a special fund for green legacy and landscape restoration initiatives. The fund aims to support the rehabilitation of degraded land through afforestation, reforestation, and assisted natural regeneration. It will ensure the sustainability of the Green Legacy initiative, which aims to restore 22 million hectares of land by 2030. The fund will also attract resources from development partners to support Ethiopia’s climate-resilient and low-emission economic development.
New York's Governor Kathy Hochul signed the Climate Change Superfund Act, which will charge major oil and gas companies $75 billion over 25 years to cover climate adaptation costs. The bill uses a "polluter-pays" model, holding the largest climate polluters responsible for damages caused by the climate crisis, without passing costs on to consumers. The funds will be used to address extreme weather and climate impacts, with significant support from economists and New York residents. The act is expected to ease the financial burden on New Yorkers facing growing climate-related expenses.
The Brazilian Government has finalized the demarcation of the 13 indigenous territories that President Lula promised at his election, though one territory is still pending from the initial list promulgated by the president. The demarcations were delayed in part due to the controversial Marco Temporal bill, which sought to limit the ability of indigenous communities to claim occupation of their territories, and was struck down by the Supreme Court. Lula hopes to demarcate more of the 261 indigenous territories still unrecognized during his final 2 years in office.
Australia and South Korea have announced a bilateral agreement to increase their collaboration on climate and energy initiatives. The new Green Economy Partnership Arrangement aims to streamline trade barriers and improve cooperation on carbon market standards and certifications between the two countries, with collaboration on developing clean energy industries, low-carbon fuel supply chains, and carbon capture and storage.
California has introduced the Net Cost of Reinsurance in Ratemaking Regulation, the first of its kind to require insurers to provide coverage in high-risk areas. The regulation ensures insurers cover wildfire-prone regions, capping reinsurance costs to prevent excessive charges and modernizing reinsurance practices to stabilize the market. It mandates consistent wildfire catastrophe models for rate predictions and aligns risk assessments with consumer protection. This reform aims to enhance the state's insurance market resilience against climate risks while expanding options for Californians.
The U.S. Treasury Department plans to release guidance later this week on accessing tax credits for hydrogen production under the 2022 Inflation Reduction Act. The guidance will likely include provisions for hydrogen produced using nuclear power, although the eligibility of existing nuclear plants has been a point of contention. The credits, based on the life-cycle greenhouse gas emissions of the production process, could range from 60 cents to $3 per kilogram. The final rules will impact the commercial viability of hydrogen production, particularly with respect to nuclear energy.
Puro.earth has released a report on the development of the carbon dioxide removal market aiming to provide an overview of the development of the market worldwide. The Report found that Carbon Removal Certificate retirements rose from 16,000 in 2020 to 156,000 in 2024, with offtake value concentrated in the Americas and Europe, the Middle East, and Africa. The U.S alone made up 53.6% of global offtake value.
Verra’s Afforestation, Reforestation, and Revegetation (ARR) Methodology (VM0047) has received approval from the Integrity Council for the Voluntary Carbon Market (ICVCM). This approval aims to strengthen confidence in nature-based carbon removal projects and enables the methodology to issue high-quality carbon credits under ICVCM’s Core Carbon Principles (CCPs). The methodology uses two innovative carbon accounting approaches, supporting scalable and credible ecosystem restoration efforts globally. Projects using VM0047 can now generate CCP-labeled carbon credits, attracting increased investment in nature-based solutions.
The Prince Albert II Foundation, ODDO BHF Asset Management, and Altitude Investment Solutions have launched the "Blue Economy Index" in Monaco to support the transition to a sustainable blue economy. This index aims to align economic growth with marine ecosystem regeneration and low-carbon societal development, targeting sectors like sustainable fishing, waste management, and water treatment. The index also targets SDGs 14, 12, and 6, offering tailored investment solutions and reduced fees to encourage investment in blue economy initiatives.
Fastmarkets has launched a new voluntary carbon pricing and news service to enhance transparency in the voluntary carbon markets. The service includes regional project-type assessments, differentials, and CORSIA-focused analysis, addressing challenges like fragmented pricing and market opacity. A comprehensive analytical release with forecasts and expanded coverage of the voluntary carbon market is planned for 2025 to further support stakeholders in making informed sustainability decisions.
A report by Global Witness reveals a sharp decline in support for biodiversity and deforestation-related shareholder resolutions by major asset managers, dropping from 59% in 2022 to 13% in 2024. Despite growing interest in nature, none of the record 18 biodiversity resolutions filed in 2024 passed, largely due to opposition from US-based managers like BlackRock, Vanguard, and State Street, compared to stronger support from European counterparts. Companies like Tyson Foods and JBS remain central to deforestation-related investor concerns.
British International Investment (BII) has partnered with Mercer to identify innovative investment strategies for mobilizing private capital into climate-related projects in emerging markets and developing economies. The initiative is part of BII’s £100 million ($125 million) Mobilisation Facility, with £50 million ($62 million) allocated for proposals by asset managers with expertise in climate finance. Selected proposals will be evaluated by an expert panel based on criteria such as scalability and impact, with potential access to non-concessional funding.
Clean Maine Carbon (CMC) has issued its first biochar CO2 Removal Certificates (CORCs) on the Puro.earth registry, with Flowcarbon as its carbon development partner. CMC produces premium biochar from locally sourced woody biomass, which enhances soil health, and water retention, and reduces the need for chemical fertilizers. CMC plans to expand its biochar production to meet growing demand from agriculture, water filtration, and mine reclamation sectors.
BankTrack has released its global human rights benchmark for 2024, focusing on the human rights policies and practices of 50 major banks. The report measured banks' policies against 3 new human rights criteria related to human rights defenders, indigenous rights to free, prior and informed consent, and the human right to a healthy environment. The report found that 36 out of 50 banks were less than halfway compliant with the requirements of the UN guiding principles, and even those regarded as leaders were still not fully compliant. The report did find that 42 out of 50 banks did have human rights policy standards in place, but that these disclosures were not translating into action for many banks, and that responses to human rights inquiries were frequently delayed.
A Mongabay investigation has found that Nepal's Forest Development Fund, which was established in 2019, has not distributed any funds, and does not have access to all the funds earmarked for it by the government. The delays in implementing the fund, which was supposed to help support the country's forest restoration efforts and community-based forest land management, has raised concern, as forest fires and other forms of forest degradation have grown in scale in Nepal.
Morgan Stanley has joined the departures from the Net Zero Banking Alliance, following Goldman Sachs, Wells Fargo, Citi Bank, and Bank of America. The alliance is under pressure from Republican politicians in the U.S. who accuse it of representing collusion among investment owners. The change also comes as banks revise their financed emissions targets based on lagging climate action.
Mongabay has published its 2024 retrospective on the voluntary carbon market highlighting the major changes that struck the industry this year. The report includes an overview of the SBTI offset controversy, the decline in carbon credit revenue to less than half its peak in 2023, and the rollout of new Article 6 rules for carbon trading, which may end up charting the future of the market.
A Workiva survey of 1,600 global executives reveals that 85% plan to disclose climate-related data, including greenhouse gas emissions and climate risks, regardless of political or regulatory changes. The survey highlights the financial benefits of integrated ESG and financial reporting, with 97% of executives recognizing its role in improving performance and growth. Executives in Brazil (78%) and Singapore (80%) expect expanded ESG regulations, while 75% of companies plan to align with the EU's CSRD even without compliance mandates. Investor confidence in regulated sustainability disclosures has also grown, with 96% agreeing it improves investment decisions.
Citigroup and Bank of America have exited the Net-Zero Banking Alliance, a global climate-banking coalition. The decision comes as US banks face increasing pressure from Republican lawmakers to disassociate from industry groups advocating for carbon reduction strategies. The exits highlight the tension between political scrutiny and commitments to climate goals within the financial sector.
The Glasgow Financial Alliance for Net Zero (GFANZ), the largest climate coalition for financial firms, will shift its structure to allow participation without requiring alignment with Paris Agreement goals. This decision follows key member departures from subgroups, such as the Net-Zero Banking Alliance and Net-Zero Asset Managers Initiative, amid political backlash and legal threats. GFANZ, established ahead of COP26, aims to expand participation by enabling financial institutions globally, including those in emerging markets, to mobilize capital for the energy transition without full membership. The group now has over 700 members and plans to focus on lowering barriers to financing the energy transition.
Japan Exchange Group has launched a search tool to help Tokyo Stock Exchange-listed companies provide sustainability-related reporting to investors. The new search tool will consolidate publications by Primary Market listed companies related to 38 ESG topics, to aid information gathering and disclosure preparation.
A study in Sustainability Science led by researchers at the French Agricultural Centre for International Development (CIRAD) and Stanford University examines the factors driving the success of conservation projects in African countries struggling with land degradation and desertification. The study examined 17 initiatives across 13 countries and found that, while success factors varied across the diverse sets of projects, careful integration of short and long-term goals, attention to local interests, and communication with policymakers could drive the achievement of ecological, economic, and social goals. The study also found that ecological improvements were usually the most pronounced, with economic and social improvements being more modest in most projects.
Mongabay has published an outlook on potential major developments for rainforests worldwide in 2025, with major themes including the future of private sector commitments on deforestation, the policy of the new Trump Administration, the effects of economic trends on deforestation, and the eventual implementation of the EUDR.
IPBES has released a new report prepared by more than 100 experts from 42 countries, focused on the transformative change needed to meet global biodiversity goals. The study identifies the disconnection from nature, inequitable power, and wealth distribution, and the prioritization of short-term gains as major drivers of biodiversity loss, and proposes a set of four core principles, five strategies, and six broad approaches to drive change in how economic and social systems interact with ecosystems.
Mongabay has published its year in review for global rainforests, highlighting the positive and negative trends in tropical deforestation worldwide. Major developments included the continued decline in Brazilian Amazon deforestation, the rise of deforestation in Indonesia, political shifts and the expansion of oil palm plantations, and record forest loss in the DRC, as well as the delayed implementation of the EUDR and adoption of new conservation financing methods, among other stories.
A new article explores the different typologies of NbS implemented at the North York Moors National Park in England and the effects of the different schemes on environmental health and human wellbeing. The study analyzed 79 NbS implemented across 31 projects and provided recommendations on how future practitioners can combine and utilize different interventions.
Capital for Climate, along with its partner, Nature4Climate, released a first-of-its-kind landscape analysis of the nature tech market. This report illuminates a burgeoning sector that will help protect, manage, and restore nature. Click here for the report!
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