Your Newsletter at a Glance
In deal flow and commitment news, the Biden administration announces $15.5bn towards domestic manufacturing in EVs, EV infrastructure, and related critical components. Funding will also focus on retaining good jobs and supporting manufacturing workers.
Brazil’s National Treasury announces guidelines for sovereign green bonds and issuance approaches, with plans to gauge interest from international investors to help set parameters for the first issue.
The steel sector sees $3bn of commitments towards net-zero across two geographic regions. Africa comes out of their first Climate Summit, held in Nairobi, with $777mn in commitments, and India is a headliner again with $2.3B in climate financing, totaling $37.3bn over the last month.
In a landmark move, Petrobras steps into the voluntary carbon market for the first time at 175k credits (certified by Verra), preserving an area of 570 hectares of Amazon rainforest.
Read the details and more below.
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Scaling Climate Tech Startups: From Innovation to Market Adoption.
Join Net Zero Insights and Alder & Co. for an in-person event, as Andrea Canepa hosts a discussion on scaling climate tech startups with top professionals from climate tech VCs and accelerators. Questions? Feel free to reach out on LinkedIn.
Climate Finance Highlights
Deals and commitments above $100mn
Market Watch
- As part of President Biden’s Investing in America agenda, the U.S. Department of Energy (DOE) announces a $15.5 billion package of funding and loans primarily focused on retooling existing factories for the transition to electric vehicles (EVs). This includes making available $2 billion in grants and up to $10 billion in loans to support automotive manufacturing conversion projects that retain high-quality jobs in communities that currently host these manufacturing facilities. The Department also announces a Notice of Intent to make available $3.5 billion in funding to expand domestic manufacturing of batteries for electric vehicles and the nation’s grid, as well for battery materials and components currently imported from other countries.
Oil India plans net zero by 2040, to invest $2.0bn in projects [Reuters]
- Oil India Ltd (OILI.NS) aims to invest 165 billion rupees ($1.98 billion) in clean energy projects to meet its 2040 net zero carbon emissions goal.
- An initiative to boost Africa's carbon credit production by 2030 drew hundreds of millions of dollars in pledges on Monday, as Kenyan President William Ruto opened the continent's first climate summit. Investment pledges include $450mn by UAE Carbon Alliance, $200mn by Climate Asset Management (joint venture of HSBC Asset Management and Pollination), $62mn from the UK, and a $65mn debt swap between Kenya and Germany.
Brazil announces rules for sovereign green bonds and issuance approaches [Reset]
- The National Treasury presents guidelines that will guide sovereign issuances of green bonds, social bonds and sustainable bonds (those that combine environmental and social attributes). The framework will be a reference for the Brazilian presence in the international ESG securities market from now on. Treasury representatives will meet with foreign investors in the near future to present the framework and gauge investor interest, which will be decisive in defining when the first issue will be made and at what amount.
- The European Commission published Terms and Conditions for its pilot auction dedicated to European renewable hydrogen production, set to open on 23 November 2023. The auction will award up to €800 million to renewable hydrogen producers in the European Economic Area (EEA). The support will take the form of a fixed premium in €/kg of renewable hydrogen produced over ten years of operation, targeting the gap between the production costs and the demand’s willingness to pay.
Nature-based Solutions HighlightsDeals and commitments above $1mn
Market Watch
Top green fund backs deforestation-free crops with $189mn [Bloomberg]
- The world’s biggest global climate fund has approved a $189 million commitment to &Green fund to support deforestation-free agriculture. The pledge by the $12.8 billion Incheon, South Korea-based Green Climate Fund will target the sustainable production of crops such as cocoa, palm oil, soybeans and rubber in 11 nations without reducing tree cover. Six of the recipients are located in Africa: Ivory Coast, Zambia, Liberia, Gabon, the Democratic Republic of Congo and Cameroon.
- The Kitchen Hub, the foodtech incubator and investment arm of Israeli food giant Strauss Group, is raising a new $70 million fund, The Kitchen Labs, with the support of the Israeli Innovation Authority (IIA). The fund will focus on four verticals: enabling technologies to support players in the alt protein space; alternative ingredients, which covers innovations such as molecular farming and plant cell culture; food as medicine; and food security and food waste reduction.
MyLand, soil health innovator secures $23mn in Series B [MyLand]
- MyLand Company Inc. (“MyLand”), a soil health focused venture, closes its Series B funding round, raising $23 million. Climate Innovation Capital and The Borden Family led the round.
- Amazon pledges $15 million towards nature conservation efforts in the Asia-Pacific (APAC). The initiative starts with a focus on India’s Western Ghats, a UNESCO World Heritage Site known for its rich biodiversity, where $3 million of the budget has been allocated. The company plans to support communities, climate resilience, and biodiversity through nature-based projects.
Research
Fast-growing mini forests help cool down a desert city [Bloomberg]
- Cities are the first line of defense in humanity’s battle against deadly heat. Bloomberg Green’s Hot Cities series looks at changes some of the world’s hottest cities are making to protect their people from extreme temperatures. This article focuses on Amman, Jordan, and the Miyawaki method, a nature-inspired method developed by a Japanese botanist in the 1970's.
Contribution of prioritized urban nature-based solutions allocation to carbon neutrality [Nature]
- Nature-based solutions (NbS) are essential for carbon-neutral cities, yet how to effectively allocate them remains a question. Carbon neutrality requires city-led climate action plans that incorporate both indirect and direct contributions of NBS. The research evaluates the carbon emissions mitigation potential of NBS in European cities, focusing on overlooked indirect pathways, for example, behavioural interventions and resource savings. Assuming maximum theoretical implementation, NbS in the residential, transport and industrial sectors could reduce urban carbon emissions by up to 25%.
- Although the importance of forest restoration for climate mitigation is acknowledged, current estimates of its climate mitigation potential may be underestimated because they focus predominantly on reforesting cleared areas. There are over 1.5 billion ha of forests worldwide that retain 50–80% of their potential biomass - prioritizing restoration in these areas could deliver rapid biodiversity and climate mitigation benefits, relative to restoring forest on cleared land. Reasonable estimates around reforestation and forest restoration suggest 2–3bn tons of sequestered CO2 per year.
Petrobras makes first-ever purchase of carbon credits [Reset]
- Petrobras announces its debut in the voluntary carbon credits market. There were 175 thousand credits generated by the preservation of an area of 570 hectares of the Amazon forest, acquired from the Envira Amazônia Project, based in Feijó, Acre, and verified by Verra.
- First Sentier Investors, a global investment manager, launches a guide designed to help institutional investors identify and assess nature and biodiversity risk in portfolio companies in light of the final framework outlined by the Taskforce on Nature-Related Financial Disclosures (TNFD), which is due to be published imminently. The guide, titled ‘Investors Can Assess Nature Now’ (ICANN), is to be used by investors to undertake nature-related company assessments and develop approaches to tackle biodiversity risks.
Climate Finance
Deals and commitments above $100mn
Individual Deals & Market Watch
Sweden's H2 green steel raises $1.6bn for Boden plant [Reuters]
- H2 Green Steel raises equity funding of about 1.5 billion euros ($1.6 billion) to build the world's first large-scale green steel plant. The plant in the northern town of Boden will use hydrogen produced from renewable electricity - rather than coal - to deliver steel in a process emitting as much as 95% less CO2 than steel produced with traditional blast furnace technology.
Steelmaker JFE to raise $1.4bn for decarbonization in share, bond sale [Nikkei Asia]
- Japanese steelmaker JFE Holdings plans to raise around 200 billion yen ($1.37 billion) for efforts to cut carbon emissions, including higher production of metal for electric vehicles. Japan's second-largest steelmaker by output seeks to raise 100 billion to 120 billion yen through a public share offering amounting to nearly 10% of its outstanding shares.
Bridgepoint expands in mid-market with $1bn Energy Capital buy [Reuters]
- Alternative asset fund manager Bridgepoint (BPTB.L) will buy Energy Capital Partners for an initial 835 million pounds ($1.05 billion) including debt, boosting its presence in mid-market asset investing. Energy Capital Partners invests across energy transition, electrification and de-carbonization infrastructure, including power generation, renewables and storage.
Repsol enters U.S. onshore wind market with $768mn ConnectGen buy [Reuters]
- Repsol (REP.MC) enters the U.S. onshore wind market by buying renewable energy developer ConnectGen for $768 million, expanding its presence in a country the Spanish energy firm sees as a key market. The acquisition of ConnectGen from Quantum Capital is part of the Spanish company's pivot from oil and gas to renewables, with a special focus on the United States.
KKR invests $750mn in battery storage firm Zenobe [Mergers and Aquisitions]
- KKR & Co. plans to invest $750 million in U.K. energy storage company Zenobe Energy Ltd., marking a first step in the U.S. private equity giant’s global climate strategy. Zenobe runs grid-scale batteries and provides charging and battery infrastructure for electric vehicle fleets. The parties are discussing a potential valuation of $900 million for the London-based company before the injection of any new money is taken into account, according to people familiar with the matter.
- Eos Energy Enterprises, Inc. (NASDAQ: EOSE), a provider of safe, scalable, efficient, and sustainable zinc-powered long-duration stationary energy storage systems, announces Project AMAZE —American Made Zinc Energy, a $500 million planned expansion and a significant milestone to build 8 GWh of clean energy storage production capacity.
- Statkraft adds 39 wind farms in operation to its European onshore wind power portfolio in a second fleet acquisition. Thirty-five of the assets are based in Germany and four are in France. The move to add to the existing portfolio in both countries is part of Statkraft’s ambition to accelerate its growth rate in wind, solar, and battery storage in its established markets to reach an annual development rate of 4 GW by 2030.
Enfinity secures ICG funds to back 17-GW renewables portfolio ($428.9mn) [Renewables Now]
- US-based renewable energy and sustainability services company Enfinity Global Inc secures a EUR-400-million (USD 428.9m) investment to support the development of its 17-GW project portfolio.
Encina seeks to raise $300mn for US renewables, storage [Renewables Now]
- Houston, Texas-based investment management firm Encina Sustainable Infrastructure launches its first green investment vehicle, setting a target to raise USD 300 million (EUR 279.8m) to pour into renewable energy generation assets and batteries in the US market over the coming years.
- Qualitas Energy, a global investment and management platform focused on renewable energy, energy transition, and sustainable infrastructure investment, announces the closing EUR 280 million for the 494MW Mula photovoltaic plant in Murcia, Spain. Mula, one of the largest PV projects in Europe, is owned by Northleaf Capital Partners and Qualitas.
- Netherlands-based EIT InnoEnergy raises over €140 million to support cleantech and energy innovation. The funding will boost growth in its portfolio companies, aiming to generate €110 billion in revenue by 2030.
Temasek leads $140mn funding in Ola Electric at a valuation of $5.4b [Deal Street Asia]
- Singapore’s Temasek leads a $140 million funding round in India’s Ola Electric at a valuation of $5.4 billion, the latest funding for the e-scooter maker before its initial public offering. Ola Electric, founded by Bhavish Aggarwal and backed by Japan’s SoftBank Group, has become India’s e-scooter market leader with a 32% share, competing with Ather Energy as well as companies such as TVS Motor and Hero Electric.
Hero MotoCorp, GIC to increase stake in Ather with $108mn investment [Tech Crunch]
- Hero MotoCorp and Singapore sovereign fund GIC are investing $108 million in Ather Energy, a promising electric vehicle startup in India whose fast-growing fortune had to hit the brakes after a local policy change. Ather Energy, which was on track to hit $1 billion in revenue by December this year, recently hit a roadblock after the Ministry of Heavy Industries cut the subsidy it offers for two-wheelers.
Climate- and impact-focused Indian VC Asha Ventures looks to raise $100mn fund [Deal Street Asia]
- Climate- and impact-focused venture capitalist Asha Ventures is understood to be in talks to raise a $100-million fund as it looks to back companies that can create a positive financial impact on the mass market segment in India.
Nature-based Solutions
Deals and commitments above $1mn
Individual Deals & Market Watch
California based Ceres Imaging secures $25.3mn in funding [SEC]
- California based Ceres Imaging closed $25.3mn in a recent funding round from undisclosed investors. Ceres specializes in aerial spectral imagery and analytics for agribusiness, across four continents and 40 crop types.
- Espoo-based Paptic closes a Series A financing amounting to €23 million to drive the growth of the Finnish company and expand its materials portfolio. The round is led by the European Circular Bioeconomy Fund (ECBF), US-based chemical company Ecolab and Japanese trading house Itochu Fibre. Founded in 2015, the company has developed Paptic®, a fibre-based and recyclable material to replace plastics and conventional materials in packaging.
Plant-Based Egg Maker Eat Just Gets New Funding Amid Cash Crunch ($16mn) [Bloomberg]
- Eat Just Inc., a closely held maker of cultivated chicken and plant-based eggs, secures new funding to fund the company through a tough market period for plant-based food companies. Ahimsa Foundation, a nonprofit, provided $16 million in new capital to help Eat Just grow. Both Ahimsa and VegInvest Trust have been significant investors in Eat Just and share the company’s goal of working toward more humane food.
- Dutch microalgae specialist Phycom has announced a €9 million investment from partners, including bioingredient maker Corbion, Phase2.earth, Invest-NL, and Invest International. With the new funds, Phycom plans to grow its high-quality microalgae at an industrial scale, improve its technology, and expand its marketing activities.
- ViAqua Therapeutics, a biotechnology company and developer of an orally administered RNA-particle platform to promote and improve animal health in aquaculture, announces a US$8.25M funding round led by S2G Ventures with participation from Rabo Ventures, The Trendlines Group Ltd., Agriline Limited, Nutreco, I-Lab Angels and Circle Investments LLC. Aquaculture is essential for improving food security, providing a healthy and sustainable food source, and protecting wild fish stocks in the face of growing demand for marine protein - yet disease management is currently the biggest issue facing the aquaculture industry. To address this challenge, ViAqua has developed RNA-based solutions to improve disease resistance in aquaculture.
- From over 400 contesting teams, a research consortium led by Finnish company Solar Foods to produce sustainable milk protein from CO2 and electricity won the European Innovation Council’s Pathfinder Challenge 2022. The challenge, which seeks cutting-edge research projects that could achieve breakthroughs in their respective fields, will invest €5.5 million in the consortium’s four-year HYDROCOW project.
- BioInnovation Institute (BII), an international non-profit foundation incubating and accelerating world-class life science research, announces three NbS companies that are to receive additional financial support for their next phase of growth: TriptoBIO, which is developing a high-value plant compound production platform focused on triptolide to liberate the world from rat poison; Agrobiomics, which is developing transformative natural solutions, with a vision of securing a sustainable food supply, that makes agriculture resilient to climate change; and MATR Foods, which is producing plant-based umami foods from the side streams of the current food industry.
Biomaterials startup altM raises $3.5mn in funding led by Omnivore [The Economic Times]
- Biomaterials startup altM raises $3.5 million in a seed round led by Omnivore. The Bengaluru-based startup aims to develop and manufacture scalable biomaterials to help large industries reduce carbon footprints across their supply chains. It uses lignocellulosic agricultural residues as its raw material to produce advanced materials as alternatives to unsustainable incumbents.
- Nasekomo, pioneering insect-tech scale-up in Europe, announces it was selected to receive a grant under the European Recovery and Sustainability Plan, at a total of BGN 4,9 million (€2,5 million). The funding is furthering Nasekomo’s mission to contribute to the circular bioeconomy and address critical sustainability challenges around the production of animal feeds, such as fishmeal and soy.
The Conrad N. Hilton Foundation awards $2.5mn to One Acre Fund [Farmers Review Africa]
- One Acre Fund – an agricultural service provider that supports Africa’s smallholder farmers to build resilient communities – won the 2023 Conrad N. Hilton Humanitarian Prize and will receive a $2.5mn grant. One Acre Fund reaches a network of four million farm families across nine countries through its direct service program and partnerships. This funding will support One Acre Fund’s plans to grow its portfolio across key markets, reaching roughly 1.6 million farmers with its core program and over 3 million additional farmers via partnerships. Funding will aid implementation of One Acre Fund’s 10-year climate strategy, prioritizing climate-smart interventions that bolster farmers’ incomes.
iRancho Raises USD $1.4mn to Transform Sustainable Livestock Farming [Contexto]
- Banco do Brasil announces a USD $1.4 million investment in the Brazilian agtech firm iRancho through its corporate venture capital fund, BB Ventures, managed by MSW Capital. The investment aims to accelerate sustainable livestock farming practices across Brazil and beyond.
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