Your Newsletter at a Glance
Commentary by C4C
A new report provides some hopeful news on the Brazilian Amazon: deforestation is down 57% since last September, according to INPE. Green hydrogen pulls $6.2bn in commitments in India and South Africa. Green bonds receive $13.3bn in deals and commitments across the US and Netherlands, with JP Morgan selling them for the first time since 2021 at $7.25bn. Government commitments fall from last week, however still reach $25.3bn. Nature Tech sees $25.6mn.
Government-, policy-, and regulatory- movements:
- Brazil’s version of the SEC – the Comissão de Valores Mobiliários or CVM – is the first country to adopt disclosure standards for sustainability.
- US National Academies of Science, Engineering, and Medicine (NASEM) provides a set of recommendations for the US to achieve net-zero by 2050.
Climate finance headlines:
- A new IEA report argues that lack of attention and ambition may result in electrical grids hampering the energy transition.
- UK researchers tell us via Nature Communications that solar is likely to become the dominant energy source for electricity production by 2050.
- Forest Trends inform us carbon credits are associated with businesses decarbonizing faster.
Additional knowledge pieces to reflect on:
- Two new nature tech advances in fish population monitoring and biodegradable soil moisture sensors.
- Google’s DeepMind tells us how its using AI to solve the climate crisis.
Research and Knowledge Sharing
Grow your climate finance expertise
Climate
Lack of ambition and attention risks making electricity grids the weak link in clean energy transitions [IEA]
- The new IEA special report, Electricity Grids and Secure Energy Transitions, offers a first-of-its-kind global stock take of the world’s grids as they stand. It assesses signs they are not keeping pace with the emerging global energy economy, thus becoming a bottleneck for efforts to accelerate clean energy transitions and ensure electricity security.
Brazil's Securities and Exchange Commission (CVM) is the first to adopt global ESG reporting standard for sustainability financial disclosures [Reset]
- This is big. Brazil is the first country in the world to officially adopt the newly created global standard for sustainability financial disclosures for companies and funds. The Securities and Exchange Commission (CVM) issued a resolution endorsing the rules launched in June this year. Standards created by the ISSB will be mandatory for companies from 2027; the objective is to standardize the disclosure of sustainability risks and opportunities
World may have crossed solar power 'tipping point' [TechXplore]
- A new study out of the University of Exeter and University College London and published in Nature Communications finds the world may have crossed a "tipping point" that will inevitably make solar power our main source of energy. The study, based on a data-driven model of technology and economics, finds that solar PV (photovoltaics) is likely to become the dominant power source before 2050—even without support from more ambitious climate policies. However, it warns four barriers could hamper this: creation of stable power grids, financing solar in developing economies, capacity of supply chains, and political resistance from regions that lose jobs.
New report by NASEM provides comprehensive plan to meet U.S. Net-Zero goals and ensure fair and equitable energy transition [NASEM]
- A new report from the National Academies of Sciences, Engineering, and Medicine, titled Accelerating Decarbonization in the United States, provides a broad set of recommendations that form a comprehensive plan to put the U.S. on a pathway to realize its net-zero carbon emissions goals by 2050. The second of two reports, the new report focuses on gaps and barriers to implementation of net-zero policies, emphasizing the need for a strong social contract during the decades-long transition.
All in on climate: the role of carbon credits in corporate climate strategies [Forest Trends]
- Forest Trend’s Ecosystem Marketplace publishes a new report, All In On Climate: The Role of Carbon Credits in Corporate Climate Strategies. This serves as the first major update to the Taking Stock report series since 2016. This report is designed to look specifically at the climate-related behavior of companies that are involved in the voluntary carbon market (VCM) versus those who are not.
Earth had its warmest September; sixth consecutive month of record-high global ocean surface temperature [National Centers for Environmental Information]
- Earth had its warmest September; sixth consecutive month of record-high global ocean surface temperature.
DeepMind wants to use AI to solve the climate crisis [Wired]
- DeepMind, the Google-owned artificial intelligence lab, has been using its AI expertise to tackle the climate change problem in three different ways: better prediction models; optimizing current infrastructure; and accelerating breakthrough science.
Nature-based Solutions
Despite severe drought, Amazon deforestation continues to slow [Mongabay]
- Despite a severe drought, deforestation in the Brazilian Amazon is still on the decline, according to data released by Brazil’s national space research institute (INPE). INPE’s near-real-time deforestation monitoring system, DETER, detected 629 square kilometers of forest clearing in September, a 57% drop from last September. This decline in forest loss has occurred despite a severe drought that is affecting vast swathes of the Brazilian Amazon, drying up rivers and worsening the spread of agricultural fires.
EPA releases new food waste reports [EPA]
- Three new reports reveal the impacts of food waste on landfill methane emissions and provide updated recommendations for managing food waste.
First Nations-led AI technology holds promise for salmon recovery [Phys.org]
- Scientists and natural resource managers from Canadian First Nations, governments, academic institutions, and conservation organizations, published the first results of a unique salmon population monitoring tool in Frontiers in Marine Science. This groundbreaking new technology, dubbed "Salmon Vision," combines artificial intelligence with age-old fishing weir technology. Early assessments show it to be remarkably adept at identifying and counting fish species, potentially enabling real-time salmon population monitoring for fisheries managers.
Sustainable smart agriculture with a biodegradable soil moisture sensor [Phys.org]
- Researchers from Osaka University recently announced their development of a wirelessly powered soil moisture sensing technology that is largely biodegradable. This work is an important milestone in removing the remaining technical bottlenecks in precision agriculture, such as the safe disposal of used sensor devices.
Climate Finance
Deals and commitments above $100mn
TotalEnergies to invest heavily in Brazil, including offshore wind ($98.8bn) [Renewables Now]
- Brazil's energy minister Alexandre Silveira announced France's TotalEnergies will invest BRL 500 billion (USD 98.8bn/EUR 93.7bn) in boosting its presence in the country, including offshore wind projects.
Egypt inks $14.8bn green energy pacts with Chinese firms [Renewables Now]
- Egypt's Suez Canal Economic Zone (SCZONE) has entered into USD 14.75 billion (EUR 13.9bn) worth of investment pacts with Chinese companies aimed at the production of green hydrogen and ammonia as well as renewables-powered potassium chloride in the North African country.
JPMorgan returns to green bond market ($7.25bn) for first time since August 2021 [Bloomberg]
- JPMorgan Chase & Co. sold green bonds for the first time in over two years as global sales of the debt accelerate at a record pace. The biggest US bank raised $7.25 billion in three parts. The shortest portion of the offering, a four-year security, is a $2 billion green bond that’s callable after three years.
Netherlands raises almost EUR 5bn ($5.3bn) from new 20-year green bond [Reuters]
- The Netherlands raised almost 5 billion euros from a new green bond, emphasizing its efforts to mitigate flood risks. The 20-year bond priced with an issuance yield of 3.345%, the Dutch State Treasury said, adding that more than 18 billion euros of bids were received on the order book for the new bond.
REC invests $3.7bn in Odisha green H2 projects [Renewables Now]
- India's REC Ltd, formerly Rural Electrification Corporation Ltd, has committed to investing INR 310 billion (USD 3.72bn/EUR 3.53bn) into two projects for the production of green hydrogen and ammonia in the state of Odisha.
Biden-Harris administration announces $3.5bn investment in America’s electric grid, deploying more clean energy, lowering costs, and creating union jobs [USDOE]
- White House Infrastructure Implementation Coordinator Mitch Landrieu and Secretary of Energy Jennifer M. Granholm announced $3.46 billion for 58 projects across 44 states to strengthen electric grid resilience and reliability across the US.
Phelan Green to pour $2.5bn into S African green H2 plan [Renewables Now]
- Independent solar power producer Phelan Green Energy unveiled plans to invest ZAR 47 billion (USD 2.5bn/EUR 2.37bn) to build a green hydrogen and ammonia production plant in South Africa's Western Cape province.
Plus Power raises $1.8bn for energy storage in US [Renewables Now]
- Plus Power raises USD 1.8bn for energy storage in Texas, Arizona. Houston-based battery systems developer Plus Power LLC unveiled on Tuesday the completion of USD 1.8 billion (EUR 1.7bn) in new financing for the construction and operation of five standalone energy storage projects in Texas and Arizona.
Octopus Energy to invest $1.1bn in renewables in Germany [Renewables Now]
- Octopus Energy plans to invest EUR 1 billion (USD 1.05bn) in the development of new wind and solar farms in Germany by 2030, according to a spokeswoman for the British energy and technology group.
Trina Solar to invest up to $1bn in Mexico's Nuevo Leon [Renewables Now]
- Chinese solar equipment manufacturer Trina Solar Co Ltd may invest between USD 700 million (EUR 661.3m) and USD 1 billion in the northern Mexican state of Nuevo Leon.
New York Power Authority set to hit market with $751mn green bond deal [The Bond Buyer]
- The Power Authority of the state of New York is heading into the municipal bond market with a $750.975 million issuance of green bonds.
Scottish Government announces £500mn ($607.6mn) commitment to Scotland's offshore wind supply chain [Windtech International]
- First Minister Humza Yousaf has declared that the Scottish Government will allocate £500 million for the development of Scotland's offshore wind supply chain over the next five years. This financial commitment underscores the government's dedication to renewable energy, economic development, and the growth of the offshore wind sector in Scotland.
Ørsted strikes €473mn ($501.6mn) deal to sell half of Gode Wind 3 [Renewables Now]
- Danish energy major Ørsted A/S (CPH:ORSTED) announced it is selling a 50% interest in the 253-MW Gode Wind 3 offshore wind project in German waters to funds managed by Nuveen's Glennmont Partners.
Hydro One Inc. prices offering of $400mn medium term notes under sustainable financing framework [Hydro One]
- Ontario's Hydro One Limited announced that its wholly-owned subsidiary priced an offering of $400 million aggregate principal amount of 5.54% Medium Term Notes, Series 57, due 2025 (the "Notes"). The net proceeds from the issuance of the Notes will be approximately $399 million. The offering of Notes represents Hydro One's third issuance of medium term notes pursuant to its Sustainable Financing Framework (the "Framework") dated January 23, 2023, and Hydro One's second issuance of green bonds under the Framework.
EBRD reviews potential €165mn ($175.0mn) loan to upgrade Egypt’s electricity grid [Egypt Today]
- The European Bank of Reconstruction and Development (EBRD) announced a potential sovereign loan of up to €165 million, aiming to upgrade and reinforce Egypt’s electricity transmission grid. The EBRD has set the approval date for the loan as 13 December 2023.
Nature-based Solutions
Deals and commitments above $1mn
IFC, OCP Group launching $800mn platform to finance sustainable food systems in Africa [Global Ag Investing]
- The International Finance Corporation (IFC), a member of the World Bank Group, and OCP Group, the world’s largest producer of phosphate-based fertilizer, are launching an $800 million ag finance platform to build sustainable food production and distribution systems in Africa.
Netherlands National Growth Fund invests EUR 129mn ($136.8mn) in transition of the agricultural sector [Next Food Collective]
- The National Growth Fund invests an amount of 129 million euros in the ReGeNL program; a groundbreaking program designed to transform the Dutch agricultural sector into a regenerative, sustainable and future-proof sector. The program is founded by a partnership of 54 companies and organizations. This week the Ministry of Economic Affairs and Climate Policy announced that the ReGeNL consortium has met all the conditions for this investment and that the allocation of funding is therefore final.
Central Govt. to give ₹990 crore ($118.9mn) for restoration of River Noyyal in Coimbatore [The Hindu]
- The Central Government would soon allot ₹990 crore from the National River Restoration Fund, managed by the Ministry of Jal Shakti, for the restoration of River Noyyal proposed by the Coimbatore and Tiruppur city Corporations under the ‘Nadanthai Vaazhi Cauvery’ project.
Biden-Harris administration announces availability of nearly $50mn to strengthen forest products economy, forest sector jobs as part of Investing in America Agenda [U.S. Department of Agriculture]
- The Biden-Harris Administration announced the U.S. Department of Agriculture’s Forest Service is making nearly $50 million in grant funding available for proposals that support crucial links between resilient, healthy forests, strong rural economies and jobs in the forestry sector.
DAIZ, a Japanese alternative protein startup, raises $47mn in a Series C [Green Queen]
- Japanese plant-based meat company DAIZ, which uses a proprietary soy germination tech to make ‘miracle chips’ for vegan analogues, has raised ¥7.1B (about $47.4M) in Series C funding, which it will use to build a new 40,000 sq ft facility.
Overstory raises $14mn Series A to help solve climate and biodiversity crises [Businesswire]
- Overstory, a climate tech startup that leverages artificial intelligence (AI) to mitigate wildfires, protect biodiversity, and help industries make smarter decisions about natural resources, announced that it has raised $14 million in Series A financing. The round was led by B Capital, with participation from The Nature Conservancy, among other top climate-minded investors. The latest raise brings Overstory’s total funding to $25 million.
Urban Sky closes $9.75mn Series A to scale Earth imaging operations using reusable balloons [Tech Crunch]
- Stratospheric balloon company Urban Sky has closed a $9.75 million Series A round to scale its Earth imaging operations and expand its data products. The Series A financing round was co-led by New Legacy Ventures, Lerer Hippeau and Lavrock Ventures, with participation from Catapult Ventures, Union Labs VC, DA Ventures (a Denver Angels Affiliate) and TenOneTen Ventures.
Nongshim invests $7.4mn in food tech startups [Korea JoongAng Daily]
- Nongshim is investing 10 billion won ($7.4 million) in venture funds aimed at discovering food tech startups. The food giant behind the popular Shin Ramyun instant noodles will be investing 5 billion won each in the funds operated by Stonebridge Ventures and IMM Investment. Nongshim plans to spend the investment in fostering startups with technologies that are able to innovate the food value chain, including the fields of smart farms and cultivated meat.
India PM Modi launches maritime projects worth Rs 23,000 Crore ($2.8mn); unveils long-term blueprint for Blue Economy [BQ Prime]
- Prime Minister Narendra Modi launched maritime projects worth Rs 23,000 crore and unveiled the long-term vision document for the blue economy. The blueprint outlines strategic initiatives aimed at enhancing port facilities, promoting sustainable practices, and facilitating international collaboration, an official statement said.
Scottish Beta Bugs raises £1.7mn ($2.1mn) to scale production of insect protein from waste streams [Business Cloud]
- Scottish insect genetics business Beta Bugs has secured £1.7 million investment to scale the production, sale and supply of its Black Soldier Fly eggs and larvae to the insect farming sector, an alternative protein source for use in aquaculture, pork and poultry feed which can be reared on waste streams. The funding round was led by The TRICAPITAL Syndicate LLP, with participation from SIS Ventures, Scottish Enterprise, Beeches Group, Climate.vc, together with existing shareholders in the business and InnovateUK.
Nature startup Nala Earth raises €1.7mn ($1.8mn) to develop corporate biodiversity reporting platform [Carbon Pulse]
- Nala Earth announced its €1.7 mln pre-seed fundraise. The company said it is aiming to develop a single platform that it says will support companies to meet target-setting, voluntary corporate disclosures, and EU reporting requirements, and identify the most relevant nature metrics for businesses and supply chains. Swedish climate tech fund Pale Blue Dot and the Swiss venture capital firm Wingman Ventures lead the list of backers, along with International angel investors such as Kentaro Kawamori, founder of the carbon accounting platform Persefoni, Lea-Sophie Cramer, founder of Amorelie and 10morein, and Daniel Mahler, an EVP at Estee Lauder NY.
Notpla is awarded a £1mn ($1.2mn) grant by Innovate UK to advance alternative bio-based materials [Notpla]
- The funding will support Notpla and their partners, Eco Cascade, Atritor Limited and Plastic Engineering Solutions Limited, to scale up production of their seaweed-based material for injection molding applications like takeaway cutlery.