20 January - 24 January, 2025

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In this Week’s Issue: $123.6 billion across 16 deals in Transition Finance, NbS ($28.6 million), Hard-to-Abate industries ($10.2 million) and the Blue Economy ($2.3 million).

10 Essential Deals and Commitments:

Transition Finance

• Norsk Hydro issues $525 million in green bonds
• A2A launches its first ever green bond, raising $520 million
• Allianz and the EIB complete a $468.2 million emerging market climate fund
• BNP Paribas AM closes its climate VC fund at $187.5 million
• Japan lays out priorities for $70 billion in climate finance

Nature-based Solutions

• The “Race to Belem” initiative launches to mobilize billions to Brazilian NbS by COP30
• The GEF invests $20 million in Bhutan to support urban NbS

Hard-to-Abate Emissions

• Metafuels secures $9 million to expand SAF production

Carbon Removal

• SLB commissions its first modular carbon capture plant

Blue Economy

• Seares raises $2.3 million to expand sustainable mooring facilities

News Highlights

Policy and Regulation

• Indonesia opens its carbon exchange to international buyers
• France and Germany push to shift back the EU CSDDD and CSRD
• 24 US states commit to the Paris Agreement following federal withdrawal

Climate & NbS Finance

• Bloomberg Philanthropies agrees to cover US UNFCCC contributions following Paris Agreement withdrawal
• The UN GCF considers capital market borrowing to raise funds for climate action
• Standard Chartered joins the #BackBlue blue economy commitment, bringing signatories assets managed to $2.69 trillion

Emerging Science

• A new BirdLife Europe report estimates the carbon storage potential of ecosystem restoration in Europe
• The World Economic Forum publishes sectoral analyses for nature positive transitions
• Carbon Direct publishes a new guide to sustainable biomass sourcing

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Nature-based Solutions ≥ $1M

Commitments and deals

Commitments

Race to Belem's initiative launched to scale rainforest finance by billions ahead of COP30 [environmental finance]

• Conservation International, The Nature Conservancy, and Silviana have launched the “Race to Belem,” an initiative aiming to mobilize billions in private sector finance ahead of COP30. The initiative will move capital through investments in state-level programs that reduce deforestation, including direct investments in indigenous communities and Jurisdictional REDD+ programs. Silviana has already agreed to commit $100 million to support the development of a forest protection project. Citi has also signaled a potential $100 million commitment.

Deals

Madagascar secures $8.56 million to conserve species and restore habitats [iucn]

• Madagascar has secured $8.56 million from the Global Biodiversity Framework Fund (GBFF) of the Global Environment Facility (GEF) for the five-year BioTAct project, which aims to conserve threatened species and restore critical habitats across 1.24 million hectares. Co-designed by IUCN and Madagascar's Ministry of Environment and Sustainable Development, the project aligns national strategies with international biodiversity goals, integrating ecological restoration, climate resilience, and community engagement. An additional $41 million in co-financing will support long-term conservation efforts and innovative financing mechanisms.

Marubeni and MOL launch joint venture for nature-based carbon removal credits [marubeni]

• Marubeni Corporation and Mitsui O.S.K. Lines, Ltd. have formed Marubeni MOL Forests Co., Ltd. to create, trade, and retire nature-based carbon removal credits. The venture’s first project involves afforesting 10,000 hectares in India, targeting credit generation by 2028. This aligns with both companies’ decarbonization strategies and aims to contribute to climate goals and biodiversity conservation.

Bhutan secures $20 million for urban resilience project and nature-based solutions [undp]

• The Global Environment Facility's Least Developed Countries Fund has approved a $20 million grant to Bhutan for the Enhancing Climate Resilience of Urban Landscapes and Communities project in the Thimphu-Paro Region (ECRUL). The initiative, co-financed by the Royal Government of Bhutan with over $62 million, aims to improve urban resilience by implementing nature-based solutions, restoring 800 hectares of land, upgrading infrastructure, and enhancing early warning systems. The six-year project will benefit over 146,000 residents and contribute to Bhutan’s National Adaptation Plan and Paris Agreement commitments.

Fund Formation

$1.5 billion Amazon protection fund launched at WEF Davos [esg news]

• The “Race to Belém” initiative, launched at the World Economic Forum in Davos, aims to raise $1.5 billion for Amazon rainforest protection through the sale of jurisdictional carbon credits. Led by Silvania in partnership with Conservation International and The Nature Conservancy, the initiative seeks private investments to safeguard the Amazon and mitigate climate change. Credits will be issued under the JREDD+ framework, with Sylvania committing up to $100 million in upfront capital. The plan aims for large-scale, measurable carbon savings while supporting local communities and avoiding past project pitfalls.

Transition Finance ≥ $100M

Commitments and deals

Deals

Bees & Bears secures $525 million for sustainable home energy solutions in germany [eu-startups]

• Bees & Bears, a Berlin-based climate fintech company, has secured €500 million ($525 million) in financing commitments to support the installation of sustainable energy solutions in private homes across Germany. The funds will enable the installation of up to 25,000 photovoltaic systems, heat pumps, energy storage units, and EV chargers. The company offers flexible, deferred payment options for private customers, aiming to make climate-friendly home retrofits more accessible through independent contractors.

Mirova Gigaton Fund invests $10.2 million in Ecoligo’s solar projects in Vietnam [impactinvestor]

• Mirova's Gigaton Fund is investing €9.75 million ($10.2 million) in senior debt financing to Berlin-based solar developer Ecoligo to expand rooftop solar projects in Vietnam. This financing will help local businesses transition from fossil fuels to clean energy, contributing to the country's goal of carbon neutrality by 2050. Ecoligo focuses on providing solar photovoltaic systems to commercial and industrial clients, working alongside local partners to ensure project success and maintenance. This is Mirova Gigaton Fund's first investment in Vietnam, furthering its strategy of supporting energy transition in emerging markets.

Japan’s $70 billion push for carbon credit leadership and net-zero goals [carboncredits]

• On trend with countries building their own carbon markets, Japan is aiming to position itself as a leader in carbon credit markets, with a $70 billion investment in sustainable solutions and decarbonization efforts. The Japan Carbon EX platform supports the country's carbon neutrality goals by facilitating trading in Voluntary Carbon Credits, J credits, and Non-Fossil Fuel Certificates. Backed by SBI Group and ASUENE, it ensures reliable and transparent carbon credit transactions. Japan's Green Growth Strategy, alongside global collaborations, aims to reduce emissions and drive economic growth, targeting net zero by 2050.

CalPERS commits over $53 billion to climate solutions [carmichael times]

• CalPERS has committed over $53 billion toward climate solutions as part of its $100 Billion Climate Action Plan, which is aligned with its Sustainable Investments 2030 Strategy. The plan aims to reduce investment risks by halving emissions intensity by 2030 and achieving Net Zero by 2050. CalPERS has made new commitments of $3.6 billion in climate solutions, including partnerships with Brookfield, TPG Rise Climate, and investments in companies like Octopus Energy. Additionally, $3.2 billion in climate-related investments are under review.

Insight Terra raises $5.7 million to expand ai-driven climate risk platform [tech in africa]

• Insight Terra has raised $5.7 million in an extended Series A funding round led by E3 Capital, with additional investment from Fireball Capital, Atlantic Bridge, Globalive, and JLR Star. The funds will help expand its AI-powered platform for monitoring greenhouse gas emissions and geotechnical risks, targeting industries facing stricter environmental regulations. The company plans to grow its commercial and technical teams, enhance platform capabilities, and expand into new markets, with a focus on supporting sustainability goals and improving climate risk management. Insight Terra’s platform also aims to improve operational safety and regulatory compliance in industries vulnerable to climate impacts.

New York allocates $1.2 million for electrolyzer membranes R&D [renewables now]

• NYSERDA has awarded over $1.2 million in state funding to four research projects focused on improving clean hydrogen production technology, with the largest grant of $720,000 going to Ecolectro Inc. for developing advanced electrolyzer membranes, helping these projects meet federal cost-sharing requirements.

SLM Partners holds $32.7 million close on Silva Europe Fund [agri investor]

• SLM Partners has completed the final close of its Silva Europe Fund at $32.7 million, restructuring it to focus exclusively on permanent crops, while moving its forestry investments to a separate fund.

Pine Wind Power to acquire 26% interest (at an undisclosed amount) in Formosa 2 offshore wind farm [pr newswire]

• Pine Wind Power, a subsidiary of J&V Energy, has agreed to acquire a 26% stake (at an undisclosed amount) in Taiwan's Formosa 2 Offshore Wind Farm from Macquarie Asset Management, marking J&V Energy's first operational wind farm investment in Taiwan and strengthening local ownership of the 376MW facility that powers approximately 380,000 Taiwanese households.

Fund Formation

BNP Paribas AM closes climate VC fund at $180 million [new private markets]

• BNP Paribas Asset Management has closed its first climate tech venture capital fund, BNP Paribas Solar Impulse Venture Fund, with a total of €172 million ($180 million). The fund focuses on early-stage investments in sectors such as energy transition, sustainable agriculture, circular economy, water management, and sustainable mobility. Investors include ADP Group, AGPM, Cardiff, Sogecap, high-net-worth individuals, and BNP Paribas itself, which committed €86 million ($90 million). The fund is marketed under Art 9 of the EU SFDR.

Allianz, EIB closes biggest equity blended finance fund at $468.2 million [environmental finance]

• Allianz Global Investors and the European Investment Bank have completed the final close of their Emerging Markets Climate Action Fund (EMCAF) at $468.2 million, which aims to invest in 15 funds focused on climate action projects across emerging markets, with the potential to mobilize $7.8 billion in climate finance for approximately 150 projects.

Green Bonds ≥ $100M

Commitments and deals

Completed Issuances

Norsk Hydro issues $515 million green bonds to fund sustainability projects [recycling today]

• Norway-based aluminum producer Norsk Hydro ASA successfully issued €500 million ($525 million) in senior unsecured green bonds under its Euro Medium Term Note (EMTN) program. The bonds, with a seven-year tenor and a 3.625% annual coupon, will fund eligible projects under Hydro’s Green and Sustainability-Linked Financing Framework, supporting its green aluminum transition strategy. The bonds will be listed on Euronext Dublin, with Citi, Danske Bank, ING, J.P. Morgan, and SEB as joint lead managers.

A2A green bond raises $520 million under the EU green bond standard (environmental finance)

• Italian utility A2A has launched the first-ever green bond under the new EU Green Bond Standard, raising $520 million with strong investor demand. The issuance could pave the way for future EuGB offerings, though widespread adoption may take time due to stringent regulatory requirements.

Carbon Removal ≥ $1M

Commitments and deals

Deals

SLB Capturi inaugurates its first modular carbon capture plant [carbon herald]

• SLB has commissioned its first modular carbon capture plant at Twence's waste-to-energy facility in the Netherlands, featuring the Just Catch™ design capable of capturing 100,000 metric tons of CO2 annually for use in horticulture, food, and beverage applications.

Hard to Abate Sectors ≥ $1M

Commitments and deals

Deals

Metafuels raises $9 million to scale sustainable aviation fuel production [sustainable times]

• Metafuels, a developer of sustainable aviation fuel (SAF) technology, has secured $9 million in a funding round led by Celsius Industries, with participation from RockCreek, Fortescue Ventures, Verve Ventures, and existing backers. The investment brings the company's total raised to $22 million, supporting its efforts to scale production following technological breakthroughs in 2023 and 2024. Metafuels also received a $5 million grant from Switzerland's Federal Office of Energy and is partnering with European Energy to establish an e-SAF production facility in Denmark, aiming to decarbonize aviation.

Boeing invests in synthetic aviation fuel producer Norsk e-Fuel (at an undisclosed amount) [esg today]

• Boeing has invested in Norwegian synthetic aviation fuel producer, Norsk e-Fuel, (at an undisclosed amount) to support the development of one of Europe's first industrial-scale facilities producing sustainable aviation fuel from CO2 and water, which claims to reduce flight emissions by over 90% compared to conventional jet fuel.

Vale advances green steel plans in Saudi Arabia [capital reset]

• Vale advances its green steel production plans in Saudi Arabia, having secured land for a plant, and is now seeking partnerships with local steelmakers to develop an integrated industrial complex.

Blue Economy ≥ $1M

Commitments and deals

Deals

Seares raises $2.3 million for sustainable mooring solutions in the blue economy [nautica press]

• Seares, a startup specializing in smart mooring solutions for floating structures, has raised €2.2 million ($2.3 million) in a funding round led by CDP Venture Capital, with contributions from Toscana Next, Selected Investments, and several business angels. The funds will support Seares' growth strategy, focusing on expanding its market presence in yachting, ports, marinas, aquaculture, and renewable energy. Its innovative mooring technology includes energy recovery from wave motion and IoT sensors for constant monitoring.

Research and Knowledge Sharing

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Policy and Regulations

Indonesia opens carbon exchange to international buyers [france 24]

• Indonesia has opened its carbon exchange to international buyers, aiming to fund its 2050 carbon neutrality target and transition from coal dependency. The platform, launched in September 2023, now facilitates the sale of government-guaranteed carbon credits, with scrutiny to ensure compliance with global standards. While initial trades accounted for over 41,000 tons of CO₂, concerns remain about the additionality and alignment of credits with emissions reduction strategies.

U.S. Federal Reserve withdraws from global climate-focused central bank network [esg today]

• The U.S. Federal Reserve has withdrawn from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), citing a broadening scope beyond its statutory mandate. The NGFS focuses on managing climate and nature-related risks and mobilizing capital for sustainable investments. The Fed joined the coalition in 2020 but emphasized its limited role in addressing climate issues, conducting its first climate scenario analysis in 2023. The decision coincides with a political environment increasingly critical of climate-focused coalitions.

India and Germany collaborate on low-carbon building transition project [economic times]

• India and Germany are collaborating on the Asia Low-Carbon Building Transition (ALCBT) Project to promote sustainable construction and reduce carbon emissions. Implemented by the Global Green Growth Institute (GGGI) with support from Germany's International Climate Initiative (IKI), the project aims to integrate low-carbon concepts into new and existing buildings. The initiative plans to train over 2,100 professionals in the next two years, focusing on strategies to reduce embodied and operational emissions in construction and urban infrastructure. The project is expected to achieve a significant reduction of 1.2 million tonnes of CO₂ equivalent.

Rockefeller Foundation grants $500,000 to TNFD for nature-related financial disclosures [sustainable times]

• The Rockefeller Foundation has granted $500,000 to the Taskforce on Nature-related Financial Disclosures (TNFD) to advance its science-based framework for integrating nature-related risks into financial and organizational decision-making. This funding will support the TNFD’s goal to encourage voluntary adoption of its recommendations, aiming to shift capital towards nature-positive outcomes. The initiative aligns with the Rockefeller Foundation's mission to drive capital into underfunded areas while enhancing accountability in nature-based solutions.

France calls for 'massive regulatory pause' of CSDDD, CSRD [environmental finance]

• The French government, backed by Germany, is pushing to delay and scale back key EU sustainability reporting requirements (CSDDD and CSRD), citing business competitiveness concerns, while investors warn these delays could disrupt sustainable finance efforts.

TNFD's data facility could reduce the dominance of big players [environmental finance]

• Technology firm Refinq advocates for TNFD's open data facility to implement open funding applications and tiered licensing models, arguing these changes would democratize access to nature-related data by reducing big players' market dominance while encouraging private sector participation through flexible pricing and data-sharing incentives.

Account for 'stranded asset' risks alongside transition plan rules, EU advised [environmental finance]

• The EU Platform on Sustainable Finance recommends creating a framework to assess and account for potentially stranded assets in high-pollution industries, particularly fossil fuels, to help financial institutions evaluate corporate transition plans and make informed investment decisions as part of the EU's broader sustainability reporting requirements.

BNP Paribas backs species conservation metrics [environmental finance]

• BNP Paribas highlights two biodiversity metrics - Rarity Weighted Richness (RWR) and Species Threat Abatement and Restoration (STAR) - as valuable tools for investors to assess and prioritize biodiversity conservation efforts, despite some data limitations for less-studied species.

24 US states commit to Paris Agreement goals after trump exits accord [esg today]

• The US Climate Alliance, a coalition of 24 state governors, has reaffirmed its commitment to the Paris Agreement's climate goals despite President Trump's decision to withdraw the U.S. from the accord, pledging to continue working towards reducing greenhouse gas emissions by 50-52% by 2030 and 61-66% by 2035 through state-level climate initiatives.

Germany launches 2.6 GW solar tender [renewables now]

• Germany's Federal Network Agency has launched a new solar auction seeking 2.625 GW of ground-mounted photovoltaic projects by March 3, with a reduced price cap of EUR 0.068 per kWh, as part of its larger plan to auction 9.9 GW of solar capacity in 2025.

Rwanda CMA taking sustainable bond approach amid taxonomy roll-out [environmental finance]

• Rwanda's Capital Market Authority has introduced new sustainable bond guidelines that balance international standards with local needs by allowing 25% flexibility in project alignment while its green taxonomy develops, representing a practical approach to fostering sustainable finance in the country while preventing greenwashing.

Capturing the positive impacts of sustainable land use investment for investors [unep wcmc]

• UNEP-WCMC's updated Positive Impact Indicators Directory now provides enhanced guidance for measuring biodiversity impacts in sustainable land investments. The Directory incorporates both ecosystem extent and condition metrics, while aligning with TNFD standards to help investors effectively measure and demonstrate positive environmental impacts.

New report maps nature-related regulations for banks, finding rise in initiatives across regions [unep fi]

• A new report by UNEP FI and WWF reveals that nature-related banking regulations are gaining momentum globally, with 29 jurisdictions representing $77 trillion in banking assets now incorporating nature risk in their prudential frameworks. The Global South, particularly Latin America and Southeast Asia, is leading this integration, while Europe is advancing with new regulations addressing nature-related topics in banking, corporate disclosure, and taxonomy.

Finance Research and Updates

Bloomberg to fund UN climate body after US Paris accord exit [france 24]

• Michael Bloomberg's foundation pledged to fund the UNFCCC, covering 22% ($21.2 million) of its $96.5 million 2024-2025 budget previously provided by the US, after its withdrawal from the Paris Agreement. Bloomberg stepped in similarly in 2017 with a $15 million pledge and launched "America's Pledge" to track non-federal climate commitments.

Green Climate Fund considers borrowing to meet the tripling goal at COP29 [climate home news]

• The UN Green Climate Fund (GCF) is exploring borrowing from capital markets, using Special Drawing Rights, and global taxes to meet the COP29 goal of tripling annual climate fund outflows by 2030. The GCF aims to manage $50 billion by 2030 amid falling foreign aid budgets, but this approach has drawn criticism for prioritizing revenue-generating projects over adaptation and loss-and-damage efforts. Critics argue the proposal could undermine climate justice and leave vulnerable communities underfunded. GCF’s board and trustee must approve these measures, which parallel similar initiatives by other multilateral climate funds like the Climate Investment Funds (CIF).

Standard Chartered joins #BackBlue ocean finance commitment [the asset]

• Standard Chartered has joined the #BackBlue ocean finance commitment, which aims to ensure sustainable ocean regeneration and integrate ocean considerations into finance and insurance decisions. This initiative, led by the Ocean Risk and Resilience Action Alliance (ORRAA) and the World Economic Forum (WEF), seeks to drive investment into coastal and ocean natural capital. Standard Chartered, alongside other organizations such as AXA and Deutsche Bank, pledges to set net-zero targets, push for policy changes, and support the blue economy transition. The collective group manages $2.69 trillion in assets.

Canadian banks exit net-zero banking alliance amidst political pressure [esg today]

• Five of Canada's six largest banks—BMO, TD, CIBC, Scotiabank, and National Bank—have exited the UN-backed Net-Zero Banking Alliance (NZBA), following the trend of U.S. banks. The move reflects increasing pressure from political forces, particularly in the U.S., against climate-focused alliances. Despite the departure, the banks assert their commitment to sustainable finance, with ongoing climate strategies and internal capabilities to meet regulatory requirements. RBC remains the last Canadian bank in the alliance.

Use the bond markets to 'industrialize' blended finance, says BNP Paribas [environmental finance]

• BNP Paribas advocates for leveraging the bond market to scale up sustainable finance in emerging markets, suggesting that "industrializing" blended finance through bond issuances and outcome bonds could help meet UN Sustainable Development Goals by providing more efficient capital distribution and customizable investment opportunities.

Sustainable investment industry prepares for the change in US presidency [environmental finance]

• Donald Trump's second presidency raises concerns for sustainable investments, particularly regarding environmental policies. While potential policy changes may affect market sentiment, experts believe sustainable investing remains viable as the transition to a net-zero economy continues, albeit through a potentially complex path.

Milestone year for sustainability-linked bond market [environmental finance]

• 2025 will be a critical year for the sustainability-linked bond (SLB) market as $55 billion worth of bonds face their performance target observation dates, while the market grapples with declining issuance volumes, dropping from $100 billion in 2021 to $32 billion in 2024, amid concerns about target credibility and structure.

Emerging Science

Report examines European Carbon storage potential [birdlife]

• A new BirdLife Europe report reveals that fully restored natural ecosystems across the EU could store approximately 13 billion tonnes of carbon (equivalent to 48.5 billion tonnes of CO₂), with forests holding the greatest potential at 9.24 billion tonnes, while also potentially absorbing 378 million tonnes of CO₂ annually, exceeding the EU's 2030 target of 310 million tonnes.

Carbon Direct publishes a new guide to sustainable biomass sourcing [carbon direct]

• The 2025 Guide to Sustainable Biomass Sourcing provides comprehensive guidance for implementing biomass-based carbon dioxide removal agreements, featuring certification insights, contract templates, and practical implementation tools to ensure sustainable sourcing practices for projects launching by 2026.

World Economic Forum publishes sectoral reports for its Nature Positive Transitions Series [world economic forum]

• The World Economic Forum has published a new series of reports focused on how different sectors can align with halting and reversing nature loss by 2030. Developed with Oliver Wyman, the reports includes analysis of the automotive, cement and concrete, chemical, household and personal care products, mining and metals, offshore wind, and port sectors, and includes analysis of their current nature impact and pathways to achieving nature positive alignment.

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