June 3 - June 7,2024

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Your Newsletter at a Glance

‍Commentary by C4C

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In this week's Newsletter: $15.4 billion across 20 deals in Climate ($13.6 billion) and nature-based solutions ($414 million), and hard to abate industries ($1.4 billion).

10 Essential Deals and Commitments:

Climate

• CalPERS seeks co-investment to meet $100 billion climate investment commitments
• Australia releases three times oversubscribed green bond for $4.7 billion
• EB Capital and Saudi Arabia plot $600 million climate and energy fund
• Foresight Group holds first close of second energy transition fund at $326 million
• Xcimer raises $100 million for fusion energy commercialization

Nature-based Solutions

• Aymium secures $210 million for renewable biocarbon coal replacement plants
• Pollination launches A$150 million target climate and nature investment fund
• BBVA issues first biodiversity bond in Colombia for $50 million

Hard to Abate Emissions

• Germany will provide ArcelorMittal €1.3 billion to fund steel decarbonization
• C-Capture receives $2.1 million investment from NZIP

News highlights

Policy and Regulation

• US launches marine biodiversity strategy
• Biden Administration tightens car mileage rules
• Canada outlines blue economy plans

Climate & NbS Finance

• US clean energy investment reached $71 billion in Q1 of 2024
• Clean energy investment expected to reach $2trillion, double fossil fuel investment in 2024
• HolonIQ releases Indo-Pacific climate Tech 100 report

Emerging Science

• State of Carbon Dioxide Removal Report finds 4x annual carbon removal needed to meet goals
• WBCSD publishes new Nature-based Solutions Map
• New research examines lessons from Atlantic Forest Restoration Pact

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Nature-based Solutions ≥ $1M

Commitments and deals

Commitments

Pollination launches A$150 infrastructure fund [new private markets]

• Pollination, an asset manager and climate change advisory firm, has launched a venture capital fund focused on climate and nature technology solutions investment in Australia. The fund is the first of its kind in Australia to combine climate and nature technology investments with other solutions in one vehicle, and aims to target a final close of A$150 million ($99 million) in 2024, with a late 2024 interim close. The Fund is expected to deploy ticket sizes between A$4 million and A$12 million in companies in Series A and Series B.

BBVA to issue first biodiversity bond in Colombia for $50 million [finextra]

• BBVA Colombia and the International Finance Corporation (IFC) will issue the financial sector's first biodiversity bond worth $50 million. The proceeds will finance projects focusing on reforestation, regeneration of natural forests on degraded land, mangrove conservation or restoration, climate-smart agriculture, and wildlife habitat restoration. The transaction also includes advisory services to support best practices in natural resources management.

Deals

Aymium closes $210 million biocarbon financing deal [businesswire]

• Aymium, a renewable biocarbon product company, has closed a $210 million financing round to construct a biocarbon production facility in California. The facility is focused on replacing coal with non combustion biocarbon, which removes carbon from the atmosphere, and is expected to be finished in 2025. Much of the financing was funded through green bonds provided by ECP ForeStar and Copenhagen Infrastructure Partners Green Credit Fund.

Gresham House raises £150 million for Forest Fund VI  [new private markets]

• Following a £50 million ($64 million) investment from the South Yorkshire Pensions Authority, Gresham house has announced it has raised more than £150 million for its Forest Fund VI, out of a £400 million target. The vehicle will invest in forestry assets in the UK and generate revenue through sustainable timber harvesting.

Rio Tinto invests A$8 million in traditional owner land conservation in Pilbara [businesswire] [rio tinto]

• Rio Tinto has announced a five-year, A$8 million partnership with Western Australia's Department of Biodiversity, Conservation and Attractions (DBCA) to bolster conservation land management and Traditional Owner ranger programs in Karijini and Millstream Chichester National Parks. The Pilbara Conservation Project aims to safeguard areas of exceptional conservation value and merge Traditional Owners' profound understanding of the land into conservation strategies. Additionally, the project will sponsor ranger training and fee-for-service work for Aboriginal Ranger Programs. The investment comes as Rio Tinto seeks to come back from considerable controversy, including the destruction of First Nations’ cultural sites.

ecoLocked raises €4 million for biochar carbon removal [carbon herald]

• ecoLocked, a German startup focused on biochar production for carbon removal, has secured €4 million in seed funding from a round led by Matterwave Ventures and Climentum Capital. The funding will go to expanding the company's biochar production facilities and growing their research and development team.

innocent Drinks provides 11 farmers £1 million from regenerative ag fund [food manufacture]

• innocent Drinks has announced 11 winners for its Farmer Innovation Fund, with  £1 million distributed across farms in 10 countries. Projects were selected based on their work addressing agricultural challenges across soil health, biodiversity, climate change and water use.

Climate Finance ≥ $100M

Commitments and deals

Commitments

CalPERS seeks co-investors for $100 billion climate investment [new private markets]

• The California Public Employees Retirement System (CalPERS) is seeking co-investment partners to help fulfill its $100 billion climate solutions investment pledge by 2030. The system has already approved $600 million climate solutions co-investments between March 2023 and March 2024.

EB capital and Saudi Arabia discuss $600 million climate and energy fund [zawya]

• EB Capital Gestao de Recursos Ltda is in talks with Saudi Arabian investors to launch a $600 million fund targeting the Brazilian climate and energy sectors. The fund is expected to launch in Q3 of 2024, with 50% of the funding to be raised in Saudi Arabia.

Rockefeller Foundation announces Big Bets Climate Fellows [rockefeller foundation]

• The Rockefeller Foundation has announced its 2024 inaugural Big Bets Climate Fellows cohort, with a focus on Latin America and the Caribbean. The program will support 16 leaders across Brazil, Columbia, the Dominican Republic, Ecuador, Panama, and Puerto Rico.

Deals

Australia raises A$7 billion in three times over-subscribed bond [renewables now]

• Australia released an inaugural A$7 billion ($4.7 billion) green bond, which was over-subscribed more than three times, with bids exceeding A$22 billion ($14.6 billion).

ECP buys Atlantica for $2.6 billion [hart energy]

• In conjunction with a $6.7 billion raise, Energy Capital Partners has also agreed to acquire Atlantica Sustainable Infrastructure for $2.55 billion. Shareholders will receive $22 per share for the renewable energy plant operation company.

Qatar raises $2.5 billion in green bonds [bloomberg]

• Qatar raised $2.5 billion through its first-ever green bond issuance, divided into a $1 billion tranche with a five-year maturity priced at 30 basis points over U.S. Treasuries and a $1.5 billion tranche with a 10-year maturity priced at 40 basis points over U.S. Treasuries.

Azerbaijan invests $2billion in green investment [reuters]

• Azerbaijan will invest $2 billion in green energy while also maintaining an aggressive posture towards selling natural gas, as the country prepares to host COP29. The investments are expected to help add 2 gigawatts of renewable capacity.

Canada launches CAD $530 million fund for city adaptation [northern sentinel]

• The Canadian government has announced a CAD$530 million federal fund aimed at helping communities adapt to climate change and climate-related natural disasters. The funding will be provided over the next 8 years in the form of grants of up to CAD$1 million for municipalities throughout the country, and will include projects ranging from nature-based solutions to community infrastructure for heat resiliency.

Philippines secures $500 million investment from Climate Investment Funds [solar quarter]

• The governing board of the Climate Investment Funds (CIF) has approved a $500 million investment plan presented by the Government of the Philippines, named the Accelerating Coal Transition (ACT) investment plan, to facilitate a just transition from coal to renewable power in the country. Under the plan, the Philippines agrees to expedite the retirement or repurposing of coal-fired plants, and accelerate the retirement of up to 900 MW of existing coal generation capacity by 2027.

Foresight raises €300 million for transition-focused fund [environmental finance]

• Foresight Group has held a first close of $326 million for its second energy transition-focused fund, Foresight Energy Infrastructure Partners II. The closure was anchored by a ‘cornerstone commitment’ from the Border to Coast Pensions Partnership, plus another unnamed investor. The fund will target energy infrastructure assets across renewables generation, energy storage, and grid infrastructure.

World Bank loans Yichang City $250 million for climate-smart transportation pilot [world bank]

• The World Bank approved a $250 million loan to support Yichang City in China's transition to a low-carbon urban transportation system. The $250 million will be provided over 5 years, with any additional money to support the program needed made up by the Chinese Government. The program will help Yichang enforce cleaner vehicle emission standards, retire older polluting vehicles, prioritize public transit, walking and cycling, improve parking management, and pilot participation in an emissions trading scheme.

Net Zero Ventures secures $136 million for first close [environmental finance]

• Suma Capital's Net Zero Ventures fund has held a first close at $136 million for its first impact fund, SC Net Zero Ventures, with Repsol as an anchor investor. The fund has a €150 million target and will invest in “green transition technology” scale-up investments focused on low-carbon mobility, industrial decarbonisation and renewable energy in Spain, Europe and North America.

Xcimer raises $100 million for initial fusion energy commercialization [businesswire] [xcimer]

• Xcimer Energy has raised $100 million in financing from a consortium of funders including Breakthrough Energy Ventures, Lowercarbon Capital, Prelude Ventures, Emerson Collective, Gigascale Capital and Starlight Ventures. The funding will help to establish a new facility in Denver where Xcimer will build a prototype laser system including the world's largest nonlinear optical pulse compression system to advance its laser-driven inertial fusion technology. The company aims to build off of recent advancements in fusion energy to develop commercial-scale fusion generation in the near future, and claims to have achieved a 30x lower cost per joule system than the NIF laser system that achieved breakeven in 2022.

Macquarie Asset Management raises $85 million debt investment to support North American solar assets [businesswire] [macquarie]

• Macquarie Asset Management has agreed to a $85 million, six-year loan debt investment to Sol Systems to support the construction and operation of five utility-scale solar projects located in Illinois and Ohio. The projects are expected to complete construction by the end of 2025 and will generate revenues under long-term, fixed-price power purchase agreements with a so far undisclosed software services provider.

Research organizations collaborate on €61 million climate fund [science business]

• Led by Canada, research agencies from 8 countries will fund 32 research teams with a total of €61 million in grants. The awards will fund research on managing flooding from rising sea levels, mitigating food and water scarcity from rising temperatures, and investigating other economic, social and environmental consequences of climate change.

Hard to Abate Sectors ≥ $1M

Commitments and deals

Commitments

Rio Tinto plans to invest $143 million in New Low Carbon Steel project [esg today]

• Rio Tinto announced a $143 million investment in a new low-carbon steel project in Western Australia. The project aims to develop a new low-carbon ironmaking process, which uses raw biomass and microwave energy instead of coal. The new plant will be the first semi-industrial test of the process.

Deals

ArcelorMittal to receive €1.3 billion in funding for steel decarbonization project [steel orbis]

• The German Ministry of Economic Affairs and Climate Action has announced the approval of funding for a decarbonization project to be implemented by ArcelorMittal. The ministry will provide €1.3 billion in funding for the company's electric arc furnace (EAF) and direct reduction iron plant at Bremen, and two EAF's at Eisenhuettenstadt. The company hopes to produce 3.8 million metric tonnes of green steel per year with this investment.

Bezos earth fund grants $30 million for NC State sustainable protein lab [eurekalert]

• The Bezos Earth Fund has awarded NC State $30 million to launch the Bezos Center for Sustainable Protein, part of a $100 million alternative protein investment across multiple universities. The grant will focus on plant-based products, precision fermentation, and cultivated animal cells.

C-Capture receives $2.1 million investment from NZIP [the chemical engineer]

• C-Capture has received $2.1 million from the Net ZeroInnovation Portfolio to expand its amine-free post-combustion carbon capture technology. The company plans to trial the technology in the glass, cement, and water-to-energy industries.

Blue Economy ≥ $1M

Commitments and deals

Commitments

UBS Rockefeller Ocean Engagement Fund launched [esgtoday]

• UBS GWM and Rockefeller Asset Management have announced the launch of the UBS Rockefeller Ocean Engagement Fund, a blue economy-focused fund aimed at addressing ocean health issues. The fund will encompass a portfolio of approximately 50 stocks, and will collaborate with The Ocean Foundation as a policy and science advisor.

World Bank extends PROBLUE program [mirage news]

• The World Bank and 12 donor partners have announced they will extend the PROBLUE program through 2030, in an announcement made at the 2nd PROBLUE Global Engagement Forum. The program currently has an overall portfolio of $152 million supporting 223 activities in 89 economies, as of March 2024.

Research and Knowledge Sharing

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Policy and Regulations

US launches marine biodiversity strategy [carbon pulse]

• The US National Ocean Biodiversity Strategy, launched on Monday, June 3rd, lays out guidelines for protecting and restoring ocean biodiversity within U.S national waters. In addition to laying out plans for expanding ocean protected areas to 30% of U.S national waters by 2030, and surveying oceanic biodiversity, the strategy sets out recommendations for ocean economy that measures the values of ecosystems, as well as other natural resources, such as oceanic carbon and seabed minerals.

Canada outlines blue economy plans [government of canada]

• The Canadian government has published a new Blue Economy Regulatory Roadmap, announced at the H2O conference in Halifax. The roadmap covers actions the government plans to take across 5 major focus areas, including marine renewable energy and environmental protection, marine spatial planning, maritime autonomous surface ships, ocean technology, and sustainable fishing gear and practices.

U.S tightens car mileage rules [new york times]

• The Biden administration has tightened vehicle emission standards as part of its push to make hybrid and electric vehicles 100% of all new cars sold by 2032. The new regulations require ICE vehicles to achieve 65 miles per gallon for all passenger car models by 2031, with light trucks having to reach 45 miles per gallon, and heavy-duty pickups 35 mpg by 2035.

African Development Bank joins the African Carbon Markets Initiative [afdb]

• The AFDB has announced it will join the African Carbon Markets Initiative in order to help coordinate African countries and private sector organizations to secure climate mitigation and adaptation funding.

Finance Research and Updates

HolonIQ announces Indo-Pacific Climate Tech 100 [wate] [ein presswire]

• HolonIQ has released its Indo-Pacific Climate Tech 100 report, covering 100 climate tech startups in the Indo-Pacific. The cohort represents a valuation over $20 billion ottal and aggregate revenue exceeding $1.5 billion.

US clean energy investment reaches $71 billion in Q1 of 2024 [utility dive]

• MIT's Center for Energy and Environmental Policy Research and the Rhodium Group estimate that clean energy and transportation investment in the US hit $71 billion in the first 3 months of 2024, an all-time record 28% and $20 billion greater than the same period in 2023. The investment was driven by governments and large institutions, with retail investment falling 3% from the previous quarter, and with falls in Utility-scale solar and wind offset by emerging climate technologies.

Clean energy investment set to double fossil fuel investment in 2024 [bloomberg]

• The IEA has found that investment in clean energy is expected to climb to $2 trillion in 2024, double the amount spent on fossil fuels. The IEA finds that solar power-led sectoral growth, with investment expected to reach $500 billion, and investment in renewable electricity generation were 10 times that for fossil fuel energy generation investment.

European clean investment falls behind US [rystad]

• Rystad Energy estimates that the European Union is likely to fall behind its transition targets and behind other comparable players in 2024. The analysis found that the bloc's capex for clean technologies of $125 billion was less than a third of China's $390 billion, and while larger than the US's $86 billion, was likely to be soon eclipsed due to the IRA's incentives.

Island nations seek trillion dollar climate fund [the national news]

• A group of small island states have called for a new fund focused on supporting their fight against climate change. The 39-member Alliance of Small Island states called for a trillion dollar or more fund, dedicated to emission reduction, preparedness and disaster response, paid for by richer and less affected countries.

Emerging Science

Researchers say carbon dioxide removal must quadruple to meet climate goals [reuters]

• The annual State of Carbon Dioxide Removal report finds that the annual amount of carbon dioxide removed from the atmosphere through both engineered solutions and NbS needs to quadruple in order to meet climate goals. The report found that 7-9 billion tons of carbon need to be removed from the atmosphere each year if temperatures are to be kept below 1.5 degrees Celsius over pre-industrial levels, up from 2 billion each year currently.

New research examines bison's role in carbon storage [yahoo] [albuquerque journals]

• A report by the Yale School of the Environment finds that bison in the Carpathian region of Romania -could boost the ecosystem's ability to uptake carbon. Forest ecosystems with bison took up 9.8 times more carbon than those without it, while numbers in American plains ecosystems were at a less dramatic, but still significant, doubling or tripling.

WBCSD publishes Nature-Based Solutions Map [wbcsd]

• WBCSD has published a Nature-based Solutions map tool, as part of their NbS Blueprint report. The map is designed to help companies understand what business challenges they can address through NbS, and what biomes they can be applied in.

Paper examines ecosystem restoration lessons from Atlantic Forest [researchgate]

• An early stage paper by scholars from the University of Oregon examines the effects of the Atlantic Forest Restoration Pact on forest restoration on the east coast of Brazil. The study found that intervention increased forest cover by 9-21 percentage points, most likely because of support for private landowners.

Nature study examines mangrove restoration in India [nature]

• A new paper in Nature examines the effect of ecological restoration on degraded mangroves in the Indian Sundarbans, and attempts to quantify their success rate when done under mono-species plantation frameworks vs. more diverse site-specific techniques. The study found greater faunal and floral diversity, and ecosystem integrity where site-specific target species were planted overall, compared to mono-species restorations.

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