In this Week’s Issue: $25.7 billion across 28 deals in Transition Finance ($18 billion), NbS ($810 million), Carbon Removal ($5 billion), Hard-to-Abate industries ($1.4 billion) and the Blue Economy ($182 million).
Capital for Climate’s Climate Investment Newsletter will be on hiatus until early January. We wish our readers a happy holiday season and new year, and look forward to sharing many more deals and stories with you in 2025. Thank you for making this an amazing 2024 for us. We hope you’ve enjoyed reading this newsletter, as much as we’ve enjoyed writing it.
Sincerely,
Ezekiel, Nicole, Marina, and the rest of the C4C team.
Ecuador has completed a debt conversion for $1.53 billion of its international bonds, generating $800 million in fiscal savings through 2025. The transaction was supported by The Nature Conservancy (TNC), the U.S. International Development Finance Corporation (DFC), the Inter-American Development Bank (IDB), and Bank of America, and will free up $460 million to support Ecuador's Amazon Biocorridor Program (Programa Biocorredor Amazónico, BCA). The initiative is the largest ever land-based Nature Bonds Program effort engaged in by The Nature Conservancy.
The Biden-Harris Administration has announced nearly $335 million in grants to support sustainable forest management and conservation on private lands. The funding, made possible by the Inflation Reduction Act, includes $210 million for grants to state agencies, for-profit entities, and non-profits to incentivize climate-focused forest practices. Additionally, $125 million will conserve 105,000 acres of forestland in 10 states through the Forest Legacy Program, which partners with local communities and landowners. The grants also aim to reduce wildfire risks and enhance carbon sequestration efforts.
HeavyFinance has partnered with Multitude Bank, which will invest €14 million ($ 14.7 million) in loans for small- and medium-sized agricultural businesses in Europe through a debt-asset securitisation deal. The loans are backed by a €10.5 million ($ 11 million) portfolio guarantee from the European Investment Fund, supporting farmers in Poland and Lithuania in adopting sustainable practices. This collaboration aims to accelerate the transition to regenerative agriculture and expand HeavyFinance's geographic reach, with full deployment expected by the end of 2025.
Bpacks has raised €1 million ($ 1.05 million) in seed funding to scale its eco-friendly bark-based packaging technology. The composite material extends shelf life of perishable items, reducing food waste by over 42%. The company has partnered with Serbian retailer, Gomex, to meet demand from FMCG retailers. Bpacks plans to build a pellet manufacturing facility and enhance its supply chain by 2025.
Triodos Bank has provided a private sector loan (at an undisclosed amount) to finance nature restoration through the UK's biodiversity net gain (BNG) model. The loan supports environmental consultancy Nature Impact in purchasing land for restoration in Wadhurst, East Sussex. BNG requires property developers to deliver a 10% net gain in biodiversity, with the option to buy credits to offset the shortfall. This marks the first BNG unit model loan from Triodos Bank.
Privium Fund Management is launching the €500 million ($ 525 million) Biodiversity Impact Fund (BIF) in partnership with Impact Orange Partners to focus on regenerative agriculture, sustainable forestry, ocean preservation, and sustainable fishery. The fund aims to address biodiversity loss by investing in solutions for conservation and restoration while aligning with SFDR Article 9. Set to launch in Q1 2025, the fund has received commitments from Dutch family offices and targets multiple UN SDGs. BIF will also provide institutional investors with guidance on measuring biodiversity impact.
Acadia Infrastructure Capital, supported by Microsoft and other companies, is developing a $9 billion pipeline of renewable energy projects across the U.S. Over the next five years, the initiative aims to build 5 gigawatts of renewable power. The projects will focus on providing affordable clean energy to low- and middle-income households, supporting local jobs, and promoting diverse ownership. Acadia's recent deal secured financing for a 210 MW solar project with Matrix Renewables, backed by Microsoft.
bp and JERA have launched JERA Nex bp, a $6 billion offshore wind joint venture with a potential net generating capacity of 13 GW, making it a top global offshore wind developer. The equally-owned company will combine bp’s and JERA’s offshore wind assets, including 1 GW of net capacity, 7.5 GW of development projects, and 4.5 GW in secured leases. Based in London, the JV will merge bp’s offshore wind teams with JERA’s renewables platform, with completion expected by Q3 2025.
Stellantis and CATL will invest €4.1 billion ($ 4.3 billion) to build a large-scale EV battery plant in Zaragoza, Spain, producing cost-effective lithium iron phosphate (LFP) batteries to enable affordable EV models. The facility, designed to be carbon-neutral, will start production by 2026 and reach up to 50 GWh capacity. This joint venture aims to support Stellantis’ B and C segment EV offerings while advancing sustainable manufacturing.
The U.S. EPA has selected 105 projects to receive nearly $1.6 billion in funding from the Inflation Reduction Act’s Community Change Grants Program. The grants will support local efforts to reduce pollution, enhance climate resilience, and address environmental justice issues in underserved communities. Notable projects include solar energy initiatives in Alaska, air quality improvements in Evansville, and water and ecosystem restoration in North Carolina. This marks the largest federal investment in environmental and climate justice in U.S. history.
Portland City Council has approved a $1.5 billion budget for the Portland Clean Energy Fund (PCEF), increasing its five-year spending plan from $750 million. The fund, which taxes large retailers in the city, supports climate projects such as energy efficiency, renewable energy, and job training. The increase in budget comes after the fund raised more revenue than expected, with an additional $300 million allocated for a new competitive grant. This expansion will support city bureaus and the program's Community Response Grants.
Google, Intersect Power, and TPG have launched a $20 billion partnership to invest in renewable energy infrastructure for new U.S. data centers, aiming for clean energy-powered expansion by 2030. The initiative includes a new $800 million funding round for Intersect Power, led by TPG Rise Climate and Google. Intersect Power will build renewable energy and storage assets, while Google will secure power offtake for data centers. The first co-located clean energy project is expected to begin operations in 2026.
The OPEC Fund for International Development has approved nearly $1 billion in development financing, supporting global projects focused on infrastructure, food security, renewable energy, and economic resilience. Notable projects include loans for improving governance and economic management in Bangladesh, promoting renewable energy in Mauritania and Türkiye, and enhancing food security in Senegal. The funding also supports small business growth, including SME financing in Côte d'Ivoire and Paraguay. Additionally, a $1.5 million grant will advance nature-based solutions in Asia-Pacific.
ADB has approved$173 million for climate-resilient irrigation projects in Cambodia, targeting infrastructure modernization and sustainable water management. The package includes $88 million for irrigation systems in Battambang and Pursat, with an additional $4.3 million for local water management capacity. Another $85 million will support large-scale irrigation systems across four provinces, aiming to enhance agricultural productivity and climate resilience.
Leyline Renewable Capital secured $140 million in follow-on funding from Keystone National Group and a public university foundation to expand support for renewable energy projects across North America. The capital will fund mid- and late-stage project portfolios, including grid interconnection deposits and equipment down payments, advancing Leyline's 15 GW renewable energy pipeline.
The World Bank has approved a $100 million development policy operation (DPO) to support Nepal’s efforts towards greener, more resilient, and inclusive growth. This DPO is part of a three-phase series aiming to enhance Nepal’s sustainability framework, focusing on areas such as green fiscal policies, water security, sustainable land use, and climate resilience. The program also aligns with Nepal's broader strategy to address environmental risks, joblessness, and vulnerable groups' economic opportunities. This initiative is expected to attract investment and improve resilience through integrated policy reforms.
BECIS secures $53 million in new equity financing from existing shareholders FMO, KLP Norfund Investments, Pula Investments, and Siemens Financial Services to drive growth in Solar, Bioenergy, and New Solutions, including cooling and heating services. Operating in eight Asian markets, BECIS aims to expand its EaaS platform, targeting over 600 MWp of solar and 400 TPH of bioenergy assets within two years. The funding aims to support BECIS’s mission to enable corporate clients to achieve decarbonization goals and advance sustainable energy adoption.
The African Development Bank has approved a $30 million equity investment in Africa Finance Corporation to support the rollout of innovative green shares for climate action projects across Africa. The funding will mobilize resources for renewable energy projects in Djibouti, Egypt, and Cabo Verde, leveraging AFC’s green equity to secure additional debt financing. This investment aims to address Africa’s climate challenges and infrastructure gap, with expected job creation and economic benefits for marginalized communities.
Elemental Impact has invested $18.6 million across 16 climate technology companies deploying projects in the U.S. (Texas, Nevada, Oklahoma, Colorado and Tennessee) and international markets. The funding seeks to address the $150 billion "Scale Gap" for early commercial deployments, targeting themes like U.S. manufacturing, resilient supply chains, rural and tribal access, and regenerative food systems. This initiative aligns with its broader strategy, including the upcoming Greenhouse Gas Reduction Fund program for later-stage technologies.
The U.S. Department of Energy (DOE) has announced an additional $14.8 million investment to support 57 small- and medium-sized manufacturers (SMMs) in implementing energy efficiency projects. These grants, part of the Bipartisan Infrastructure Law, will fund initiatives such as onsite solar installations, heat pumps, and equipment electrification to lower energy costs and reduce emissions. The program is expected to help SMMs reduce over 33,000 tons of CO2 emissions annually. The funding will leverage an additional $33.2 million from industry contributions and align with the Biden-Harris Administration’s Justice40 Initiative.
DeepGreenX Group and Hues Capital have launched the $10 billion DXG-Hues Fund to accelerate global innovation in AI, green energy, and computing power. DeepGreenX and Hues will each hold a 50% stake and act as co-general partners in the $10 billion fund, which will be based in the EU and comprise two $5 billion $ sub-funds: the DXG-Hues AI Computing Infrastructure Fund and the DXG-Hues AI Energy Fund, leveraging expertise from former executives at Alibaba Cloud, Ant Group, and Tencent, and targeting AI computing infrastructure and emerging enterprises in AI ecosystems, fintech, and green energy. This initiative aims to foster sustainability and advanced financial systems through transformative investments and collaboration.
Invesco launched the Invesco MSCI North America Climate ETF (KLMN), backed with a $2.4 billion investment from Finnish pension insurer Varma. The ETF aims to reduce exposure to greenhouse gas emissions and focus on companies with science-based emissions reduction targets, tracking the MSCI Global Climate 500 North America Selection Index. This launch follows the earlier introduction of the Invesco MSCI Global Climate 500 ETF (KLMT), also supported by Varma.
DWS Group raised €323 million ($ 339 million) at the first close of its ESG Infrastructure Debt Strategy (EIDS), targeting senior secured debt investments in sectors like renewable energy, clean transportation, and circular economy projects. The firm aims to raise €500-750 million ($ 525-735 million) for this strategy, which focuses on sustainable infrastructure in Europe. EIDS targets a 5.5-6.5% gross return per year, with at least 50% of investments aligned with the EU Taxonomy. The strategy has strong institutional backing from EMEA and APAC investors.
German development bank KfW plans to raise €10 billion ($ 10.6 billion) from green bonds in 2025, bringing its total green bond issuance to over $ 100 billion. The bank's updated framework includes biodiversity projects, such as deforestation-free avocado supply chains in Colombia and forest ecosystem adaptation in India. KfW has also expanded its green bond program to finance corporate climate change mitigation projects, alongside traditional areas like renewable energy, clean transport, and green buildings.
Brookfield Renewable will issue CAD200 million ($ 140 million) Fixed-to-Fixed Reset Rate Subordinated Hybrid Notes due 2055, with an initial 5.450% annual interest rate resetting every five years from 2030. Proceeds will fund eligible projects under its 2024 Green Financing Framework, including renewable energy, carbon capture, and materials recycling. This marks Brookfield's fifteenth green-labeled corporate issuance, reinforcing its commitment to sustainable financing and its 35,000 MW renewable portfolio. The Hybrid Notes feature a fixed-reset rate structure, aligning with Brookfield's ESG investment strategy.
bp, Equinor, and Total have reached Final Investment Decision (FID) on the $5.1 billion Northern Endurance Partnership (NEP) and Net Zero Teesside Power (NZT Power) projects in the UK. NEP will transport and store up to 4 million tonnes of CO2 annually via a 145km offshore pipeline network, while NZT Power will capture 2 million tonnes of CO2 and generate 860 MW of power. Construction begins in 2025, with operations expected by 2028, creating over 3,000 construction jobs and 1,000 operational roles.
Google has signed its largest carbon removal deal (at an undisclosed amount), purchasing 200,000 tonnes of CO2 credits from Terradot, a startup using enhanced rock weathering (ERW) to capture CO2 in crushed basalt rock and soil. The agreement, which begins in 2029, includes an equity investment in Terradot to help scale its ERW solution. Additionally, Terradot has secured $54 million in Series A funding, with backing from prominent investors including Google, Microsoft, and Sheryl Sandberg. This partnership aims to advance ERW as a significant climate solution.
Salesforce has committed $5 million to invest in durable carbon dioxide removal (CDR) through a prepurchase agreement with Milkywire. The funds will support early-stage carbon removal technologies via Milkywire's Climate Transformation Fund, which has backed 27 suppliers across nine CDR technologies globally. This partnership aligns with Salesforce’s $100 million pledge under the First Movers Coalition, aiming to accelerate the growth of innovative climate solutions. Milkywire will use this funding to help scale promising CDR projects.
Boston Consulting Group (BCG) has purchased 50,250 tonnes of certified carbon dioxide removals (CDRs) through ClimeFi (at an undisclosed amount), to be delivered over the next two years. The purchase spans various carbon removal technologies, including enhanced rock weathering and microbial carbon mineralization. This agreement supports BCG's goal to neutralize its emissions by 2030 and remove more carbon post-2030.
The California Energy Commission (CEC) has approved a $1.4 billion plan to expand the state's zero-emission vehicle (ZEV) infrastructure over the next four years. The investment will fund the deployment of nearly 17,000 new light-duty chargers, contributing to a network of 250,000 chargers, and will prioritize benefits for low-income and disadvantaged communities. The funding is part of California's broader $48 billion Climate Commitment, with at least 50% allocated to priority populations. Grants will be distributed to projects through competitive processes, supporting businesses, non-profits, and public agencies.
Electrified Thermal Solutions raised $19 million to advance the commercial demonstration of its Joule Hive Thermal Battery (JHTB), a technology that generates zero-carbon heat at temperatures up to 1,800°C. The funding round, supported by industrial and venture capital firms including Holcim, Vale Ventures, and EDP Ventures, will enable the company to scale its solution for decarbonizing industrial heat processes. According to the company, the JHTB offers a cost-effective, sustainable alternative to fossil fuels for sectors like mining, cement, and chemicals. Electrified Thermal aims to deploy 2GW of thermal power by 2030.
Meta has partnered with CarbiCrete to advance its low-carbon, cement-free concrete production technology. The collaboration will help expand CarbiCrete's capacity in Quebec and install equipment in Ontario, replacing cement with steel-making slag and mineralizing CO2 for permanent storage. The partnership also includes carbon financing to support the decarbonization of the concrete industry. CarbiCrete collaborates with 3Degrees to verify the carbon removal achieved through this technology.
The European Commission has approved €155 million ($ 162 million) in funding to support large-scale Danish seafood processing companies in reducing CO2 emissions and transitioning to eco-friendly energy sources. The grant aims to foster green investments within the fisheries and aquaculture processing sector.
The Biden-Harris Administration and NOAA have announced $20 million in funding for coastal habitat restoration and climate resilience projects for tribes and underserved communities. Of this, 15% is reserved for federally-recognized tribes and Alaska Native corporations. The funds will support capacity building, project planning, and restoration activities such as wetland restoration and dam removal. This funding is part of the third and final round from the Bipartisan Infrastructure Law, aimed at enhancing resilience to climate change and extreme weather.
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President Lula has signed Brazil's cap and trade greenhouse gas emission bill, establishing a nationwide carbon market for the country. The market is estimated to generate an estimated $7 billion per year, with companies that emit more than 10,000 metric tons of carbon dioxide required to report and trade excess emissions under the new Brazilian Emissions Trading System. Each carbon credit will be worth 1 metric ton of emissions, and fines for noncompliance will be routed to the national climate change fund, with 5% earmarked to compensate Indigenous communities.
The Western and Central Pacific Fisheries Commission (WCPFC), which sets standards for fisheries encompassing more than 20% of the worlds surface and half the world's tuna catch, has approved new crew welfare measures for fishing fleets, the first binding labor rights measures adopted in any of the world's 17 regional fisheries management organizations. The New rules are expected to significantly change aspects of the blue economy, protecting fishery employees from abuses, and will go into effect in 2028.
The California Air resources Board has announced that companies subject to the Climate Corporate Data Accountability Act will not be sanctioned for incomplete reporting for their scope 1 and scope 2 greenhouse gas emissions data for 2026. The announcement is aimed at helping companies build their emissions reporting infrastructure before the law comes fully into force.
Our partners at Ambition Loop recap the highlights of the 16th UNCCD COP, which just finished in Riyadh. The conference saw pledges exceeding US$12 billion for drought resilience, including US$10 billion from the Arab Coordination Group and US$70 million toward climate-adapted crops. Key progress included initiatives like the Great Green Wall, private sector mobilization through the Business4Land Forum, and expanding scientific frameworks with the World Drought Atlas and drought resilience observatories. Additional highlights included enhanced representation of Indigenous Peoples, strengthened gender and youth participation, and foundations for a legally binding drought protocol. With the Riyadh Action Agenda, global collaboration remains pivotal to restoring 1.5 billion hectares of land by 2030.
President Lula has signed Brazil's cap and trade greenhouse gas emission bill, establishing a nationwide carbon market for the country. The market is estimated to generate an estimated $7 billion per year, with companies that emit more than 10,000 metric tons of carbon dioxide required to report and trade excess emissions under the new Brazilian Emissions Trading System. Each carbon credit will be worth 1 metric ton of emissions, and fines for noncompliance will be routed to the national climate change fund, with 5% earmarked to compensate Indigenous communities.
The Western and Central Pacific Fisheries Commission (WCPFC), which sets standards for fisheries encompassing more than 20% of the worlds surface and half the world's tuna catch, has approved new crew welfare measures for fishing fleets, the first binding labor rights measures adopted in any of the world's 17 regional fisheries management organizations. The New rules are expected to significantly change aspects of the blue economy, protecting fishery employees from abuses, and will go into effect in 2028.
The California Air resources Board has announced that companies subject to the Climate Corporate Data Accountability Act will not be sanctioned for incomplete reporting for their scope 1 and scope 2 greenhouse gas emissions data for 2026. The announcement is aimed at helping companies build their emissions reporting infrastructure before the law comes fully into force.
Our partners at Ambition Loop recap the highlights of the 16th UNCCD COP, which just finished in Riyadh. The conference saw pledges exceeding US$12 billion for drought resilience, including US$10 billion from the Arab Coordination Group and US$70 million toward climate-adapted crops. Key progress included initiatives like the Great Green Wall, private sector mobilization through the Business4Land Forum, and expanding scientific frameworks with the World Drought Atlas and drought resilience observatories. Additional highlights included enhanced representation of Indigenous Peoples, strengthened gender and youth participation, and foundations for a legally binding drought protocol. With the Riyadh Action Agenda, global collaboration remains pivotal to restoring 1.5 billion hectares of land by 2030.
A new study published in Nature Sustainability developed by The Nature Conservancy and its partners examines the evidence for natural climate solutions' (NCS) positive impacts on people and ecosystems. The study reviews 250,000 publications to examine evidence for natural climate solutions’ co-benefits and co-impacts (trade offs), finding evidence that many NCS have human wellbeing co-benefits, but also that co-impacts have grown in the past decade.
Ahold Delhaize USA and Campbell's launched a three-year regenerative agriculture pilot to reduce Scope 3 emissions in potato farming across 1,000 acres in North Carolina, New York, and Michigan. The initiative focuses on practices like cover cropping, nutrient management, and renewable energy for farm equipment, with potatoes used in Kettle Brand and Cape Cod chips and Campbell's soups. The program supports soil health, emissions measurement, and aligns with both companies' sustainability goals. This is Ahold Delhaize USA's third farmland-focused pilot of 2024 and builds on Campbell's broader sustainable agriculture efforts.
Baker Hughes and UC Berkeley have partnered to establish the Baker Hughes Institute for Decarbonization Materials at UC Berkeley’s College of Chemistry. The institute will focus on developing next-generation materials for carbon capture, hydrogen, and clean power generation, leveraging advanced materials research, AI, and machine learning. Baker Hughes will fund collaborative research and provide market-driven insights, aiming to scale discoveries across its climate technology portfolio. The partnership builds on past successes, including Baker Hughes’ acquisition of Mosaic Materials for direct air capture technology.
The Potsdam Institute for Climate Impact Research, funded by the G20 Global Land Initiative, released a special report on land for the 16th UN Convention to Combat Desertification. The report highlights the planetary boundaries framework to analyze the interconnections between land, climate, biodiversity, and water. It underscores the role of science in understanding land degradation and guiding policymakers with reliable data to prioritize investments and design effective 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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