March 11 - March 15, 2024

Your Newsletter at a Glance

Commentary by C4C

Dealflow Summary:

• TSMC prepares a $7.26 billion green bond. The U.S Department of Energy L.P.O plans $2.26 commitment to develop Lithium mines. Iceland raises $820 million from its first ever green bond. DOE announces $750 million for 52 clean hydrogen projects. Primergy secures $586 million to support Texas solar rollout. Bloomberg pledges $200 million to help U.S cities decarbonize. Mirova closes climate fund for nature with $212.5 million. The Department of the Interior invests $120 million in Tribal Climate Adaptation funding. TSMC and Murata contributed $50 and $30 million to Apple’s restore fund. Carbon Capture Inc raises $80 million from Series A funding round. The European Food Innovation Alliance launches regenerative innovation portfolio with $33 million, and more.

Policy & Regulatory Highlights:

• UK Labour party hires Green Finance Institute and GFANZ executives to plan proposed national wealth fund
• 45 States and dozens of cities submit climate plans to Biden Administration
• EU Corporate Supply Chain Due Diligence Regulation moves ahead after Italy provides support

Climate & NbS Finance:

• Red Trail Energy releases first Ethanol Carbon Credits
• SBTI downgrades 239 companies for failing to submit detailed plans
• Shell walks back climate goals for both 2030 and 2035

Emerging Science:

• New paper in Nature suggests U.S  Methane emissions are triple reported numbers
• Verra releases new improved forest management methodology
• New remote sensing study maps global forest management trends

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Climate Finance ≥ $100M

Commitments and deals

Commitments

EPA prepares for $20 billion green project distribution [Ehn]

• The EPA is expected to finalize its selection of more than 1200 community development Financial Institutions to help distribute $20 billion dollars in climate justice, adaptation and mitigation funding through the $14 billion National Clean Investment Fund and the $6 billion Clean Communities Investment Accelerator. Awards are expected to be announced in late March.

TSMC lists $7.26 billion in green bonds [Focus Taiwan]

• Taiwan Semiconductor Manufacturing listed green bonds worth NT$22.8 balloon ($7.26 billion on the Taipei Stock exchange on March 15th. The funds are expected to support the company's goals of achieving 100% green energy within 10 years.

DOE plans $2.26 billion commitment to Lithium Americas Corp [Department of Energy]

• The U.S department of Energy's Loan Programs Office has announced a conditional commitment of a $2.26 billion loan to help Lithium Nevada Corp finance the construction of a Lithium Carbonate processing plant in Nevada. The plant is expected to produce 40,000 metric tonnes of battery-grade lithium carbonate a year once operational.

GCF commits $100 million to Somalia through 2025 [Reliefweb]

• The Green Climate Fund has committed to invest $100 million to Somalia through 2025 to help support the country's green electrification and institutional capacity building, as well as climate resilience projects.

IBM commits $45 million in climate adaptation spending [ESGtoday]

• IBM has announced $45 million in funding for climate adaptation through its IBM Sustainability Accelerator program. The funding will be released to qualifying organizations to support resilience and adaptation for cities and communities, and will be made available over the next 5 years in the form of cash and donations of technology and services.

Deals

Iceland raises $820 million from first sovereign green bond [Environmental Finance]

• Iceland has raised eu 750 million ($820 million) from its first sovereign green bond, which was 9 times oversubscribed. The 10 year bond has a 3.5% coupon and around 280 investors participated. The Funds are earmarked to be spent on marine-related sustainable projects as well as clean transport, renewable energy, green buildings, natural resources management, and the circular economy.

Department of Energy to invest $750 million in hydrogen projects across 24 states [Spectrum News]

• The U.S Department of Energy has announced it will disburse $750 million to fund 52 clean hydrogen projects across 24 states. The projects are part of the Biden Administration’s investment in 7 regional hydrogen hubs, and will be used to scale fuel cell and electrolyzer production.

Primergy Secures $588 million in project financing for 408 MW Texas Solar Project [Business Wire]

• Primergy has received $588 million in debt financing to support its 408 MWac Ash Creek Solar Project in Texas. The Company has also signed a long-term power purchasing agreement from Microsoft for energy from the plant.

World bank approves $350 million climate resilience loan for Costa Rica [Reuters]

• The World Bank has approved a $350 million loan for Costa Rica to support infrastructure and climate resilience projects throughout the country. The program will fund infrastructure improvements for flood control, slope stabilization, and support preparation for climate related disasters.

Mirova Closes climate fund for nature with $212.5 million [New Private Markets]

• Mirova has held a second close bringing its climate fund for nature to eu 195 million, more than halfway to its eventual target of eu 350 million. The Fund will invest in agriculture and forestry projects focused on biodiversity preservation, climate change adaptation, and mitigation.

Bloomberg pledges $200 million to help 25 U.S cities decarbonize [Axios]

• Bloomberg Philanthropies has announced $200 million in funding to be split across 25 U.S cities to help them tap federal funds and scale climate mitigation and adaptation efforts. Cities include Akron Ohio, Birmingham Alabama, Charlotte North Carolina and Cleveland Ohio. Projects are expected to range from energy efficient housing to electric fleets, and selected cities will be matched with experts to support the design and execution of plans.

SIDBI forms $120 million Avaana Sustainability Fund with support from GCF [Financial Express]

• $24.5 million in recently released Green Climate Fund funds will go to anchor SiIDBI's the $120 million Aavaana Sustainability Fund, which will target investments in built environment, energy, human wellbeing, and forest ecosystems and land usage.

Department of Interior to invest $120 million in 146 tribal climate resilience projects [Doi]

• The Department of the Interior will invest $120 million from the Inflation Reduction Act and Bipartisan Infrastructure Law to fund 146 projects to help tribal communities plan and implement projects tackling climate related environmental issues. The Projects will support planning and implementation of climate adaptation, relocation, protection in place and community-led resilience efforts across the country.

Prime Energy launches first Rwandan Green Bond [Environmental Finance]

• Prime Energy has issued the first Rwandan green bond for $7.3 million. The 7 year bond is dollar denominated with the first tranche set at 9.5%. The proceeds will be used to develop the 10MW Rukarara II hydropower project and support other existing hydropower stations

Nature-based Solutions ≥ $1M

Commitments and deals

Commitments

Sinergia Investimentos expands Amazonian startup accelerator [Capital Reset]

• Sinergia Investimentos, a startup acceleration program focused on the Amazon and supported by the CERTI foundation, is initiating a new program to provide start up funding and training to Amazon-based food tech companies. The program will provide checks ranging from R$300,000 to R$1 million, with co-participation from large firms such as Fundo Vale, Bradesco, Itau Unibanco and Santander. The program will extend throughout the first half of 2024 and will focus initially on companies that are already being mentored by Sinergia, ranging from micro renewables generation to food-tech.

Deals

U.S government to invest $145 million to help landowners access climate markets [Usda]

• The USDA will invest $145 million in Inflation Reduction Act funds to connect landowners to climate markets in the United states. The funds will support forest landowner develop projects that provide access and technical assistance for accessing carbon and environmental markets, and will focus on farmers from historically disadvantaged groups.

Australian Government launches $100 million forest innovations program [MirageNews]

• The Australian Federal Government has officially launched its $100 million Australian Forest and Wood Innovations Program, in collaboration with the University of Tasmania. The program will support sustainable management of Australian forests and prioritize climate mitigation and adaptation.

TSMC and Murata investing $50 million and $30 million in Restore Fund [Macrumors]

• TSMC and Murata will join Apple's Restore Fund with a $50 million and $30 million investment, respectively. The funding is expected to support the creation of working forests on degraded pasture and agricultural land in South America, among other projects.

California to invest $50 million in salmon habitat protection grants [Ca Gov]

• The California Department of Fish and Wildlife will distribute $50 million in grants to restore salmon habitat throughout the state, in order to improve the resiliency of the state's salmon populations. The funds will be distributed to 15 projects and will focus on strengthening salmon habitat againstclimate shocks.

EPA invests $43 million in San Francisco Bay Restoration [Epa]

• The EPA will provide $43.5 million to support the restoration of the San Francisco Bay and restoration of native habitat and hydrological systems, as well as environmental justice and climate resilience projects throughout the region. The funding will be supported by a new program office to be established later this year.

Locus Fermentation secures $30 M for new carbon farming scheme [Carbon Herald]

• Locus AG (Locus Fermentation Solutions  subsidiary) has secured $30 million to support its carbon farming scheme and the development of new biologicals to support agricultural yield and environmental resilience.

European Food Innovation Alliance launches €30 million regenerative agriculture initiative [Foodbev]

• The European food innovation alliance has launched the Regenerative Innovation Portfolio, a €30 million initiative focusing on advancing regenerative agriculture across the continent. The collaborative is led by EIT Food - backed by the European Institute of Innovation and Technology - and will invest using a landscape-based strategy tailored to 5 priority landscapes across Europe. EIT has committed €15 million to the portfolio with €15 million expected from corporate partners over the next 3 years.

EIF invests EU20 million in Blue Revolution Fund [Delano]

• The European Investment Fund has announced a €20 million investment in Hatch Blue's Blue Revolution Fund. The funding will be used to foster innovation in aquaculture enterprises and protect and restore marine ecosystems.

Hard to Abate Sectors ≥ $1M

Commitments and deals

Commitments

Recently passed funding bill adds $20,000,000 to Carbon Dioxide Removal Prize [Carbon Herald]

• The U.S senates' recently passed $468.7 billion funding package contains $20,000,000 in additional funding for the Carbon Dioxide Removal Prize, as well as directives for the EPA to prepare a brief on in-situ carbon mineralization sequestration, and transitioning UIC Class 2 wells into UIC class VI wells for subsurface CO2 injection. The bill also contains $250,000 in funding for building a marine carbon dioxide removal regulatory framework, and R&D deductibility for experimental carbon removal procedures.

Deals

CarbonCapture Inc. Raises $80M in Series A funding round [Carbon Herald]

• CarbonCapture Inc. has raised $80 million from its Series A funding round, with investments from Armco Venture, Amazon's Climate Pledge Fund, and Siemens Financial Services. The company will use the funding to further refine its carbon removal technology architecture and deploy initial modular units.

Plug power to receive $75.7 million for green hydrogen projects from U.S DOE [Carbon Herald]

• Plug Power will receive $75.7 million from the Department of Energy to fund hydrogen manufacturing, recycling and electrolysis programs in upstate New York. The investment will be split into developing automation capabilities for the country's proton exchange membrane stack manufacturing plant in Rochester, and meeting a cost goal of $70 per kilowatt.

Bezos Earth Fund invest $60 million in alternative meats [Forbes]

• The Bezos Earth fund has announced it will invest $60 million in creating centers for targeting biomanufacturing and sustainable protein. The centers will be attached to different universities and will be set up over the next 5 years.

Google Sets aside $35 million for Carbon offsets [Carbon Herald] [Carbon Credits]

• Google will procure $35 million in carbon removal credits throughout 2024, in response to the DOE voluntary Carbon Removal Purchase Challenge, which hopes to bring gigaton scale carbon removal to less than $100 a ton by 2032. The announcement has raised anticipation that other tech majors may soon follow suit.

Quaise Energy raises $21 million to accelerate deep geo-thermal energy [Business Wire]

• Quaise energy has closed its $21 million series A1 financing round led by Prelude Ventures and Safar Partners, with major investments from Mitsubishi and Standard Investments. The funding will help strengthen the company's supply chain and support the rollout of its deep geothermal power generation technology.

Research and Knowledge Sharing

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Policy and Regulations

European Deforestation Regulation Implementation Delayed [Confectionary News] (Courtesy of Nature for Climate)

• Under pressure from palm oil exporters like Indonesia and Malaysia, the EU has delayed the most controversial portions of its deforestation regulation, with high risk and low risk designations expected to be implemented in 2025 instead of 2024, with all countries designated at medium risk until 2025.

Labour hires Rhian Mari Thomas of GFI and Mark Carney to help unlock green finance [The Telegraph]

• UK Labour’s shadow chancellor has announced it is hiring Mark Carney of GFANZ, Carol Young, chief executive of USS, and C S Venkatakrishnan, to help design their proposed UK national wealth fund, which will be managed by Rhian-Mari Thomas, chief executive of the Green Finance institute. Labour hopes to use the fund to scale green investment with an initial £7.3 billion investment, with £3 of private funds catalyzed by each £1 of public investment.

45 states submit climate action plans to Biden Administration [EPA]

• The US EPA has received climate action plans from 45 states and the District of Columbia, Puerto Rico and  dozens of Metropolitan Statistical Areas as part of the Biden Administration's Climate Pollution Reduction Grants program. 96% of the U.S population is now covered by a climate action plan, and $250 million in grants have already been disbursed to support program execution.

EU backs supply chain audit law after Italy switches sides [Reuters]

• Following a change in position from Italy, 17 out of 27 EU countries have announced support for a law requiring large companies to check if their supply chains use forced labor or cause environmental damage. The new law will move forward for final approval and will take effect in 2028.

Debt-for-nature swaps not improving sovereign credit rating, despite debt burden reduction [Environmental Finance]

• An S&P Global analysis of debt-for-nature swaps finds that while the issuing government's debt burden is often greatly reduced, it rarely structurally changes the credit-worthiness of the country, due to other compounding issues. Nevertheless, they expect lower rated sovereigns to continue utilizing them as a means of reducing debt burdens.

Finance Research and Updates

SBTI downgrades multiple major companies, drops JBS in update [Greenbiz]

• A major Science Based Targets Initiative update has changed the status of 239 companies on its net-zero goals tracker to commitment removed, indicating a lack of coherent strategies by those companies to meet their goals. Companies removed include JBS, Microsoft, Procter & Gamble, Unilever and Walmart, all of which did not submit science based targets by Jan 31 of 2024.

First Ethanol Company issues carbon removal credits [Carbon Credits]

• Red Trail Energy has announced the issuance of 150,000 CO2 removal certificates on the Puro Registry, making it the first ethanol production facility to generate VCM CO2 Removal Certificates. The facility is the first of its kind permitted under Class VI well regulations, and captures CO2 during the ethanol fermentation process.

Green Climate Fund grants accreditation to Nepali Investment Mega Bank Limited [MyRepublica]

• The Green Climate Fund has accredited Nepal Mega Bank Limited as climate action lender, allowing the bank to serve as a link for the fund in the middle-level category. The bank will make investments between 2024 and 2027 in energy production, infrastructure development, and livelihood enhancement.

Environmental Finance publishes Sustainable Bond Insight 2024 [Environmental Finance]

• Environmental finance has released its 10th annual Sustainable Bonds Insights report, providing an overview of 2023's sustainable bond trends.

Eni plans dedicated Carbon Capture Business [Carbon Herald]

• Eni has announced plans to establish a bio chemicals focused business unit and a carbon capture and storage focused business unit as part of its efforts to grow its decarbonization portfolio. The decision comes as part of a wider strategy that includes the acquisition of Neptune Energy and the development of renewable and biofuel divisions.

Shell walks back climate goals for both 2030 and 2035 [Capital Reset]

• Shell has made major retrenchments on its climate commitments, shifting its carbon intensity cut target from 20% to 15%-20% by 2030, and abandoning its 2035 commitment to reduce emissions intensity by 45% by 2035. The company claims that it is not reducing its climate plans, but continues to walk back targets, including the abandonment of a commitment to reduce oil production in 2023.

Emerging Science

US energy industry methane emissions are triple what government thinks, study find [Phys] (Courtesy of Nature for Climate)

• A recently published study in Nature finds that American oil and gas wells may be emitting 3 times more methane than previously estimated, with more than half coming from less than 1% of wells. The study found that gas flaring was the main culprit for methane emissions, and that many oil and gas companies were not effectively reporting their methane emissions.

Study in Climatic Change suggests that livestock industry is influencing academic perceptions of climate impact [Climatic Change]

• A Study in climatic change examines the decades of efforts by the global livestock industry to fund research supporting their positions on climate change, including attacks on the 2006 UN "livestock's long shadow" report and the funding of academic centers at major universities.

IPR warns $150 billion at risk from land use change [Environmental Finance] (Courtesy of Nature for Climate)

• An Inevitable Policy Response Analysis has suggested that continued nature-detrimental land use change, coupled with soon to be implemented policy like the EU Deforestation-free Regulation, pose a major risk to unprepared investors, who could permanently lose $150 billion in value if they do not change strategy to more nature-positive investments.

Verra releases revised improved forest management methodology [Verra] (Courtesy of Nature for Climate)

• Verra has released a new revised forest management methodology for improving dynamic baseline estimation from national forest inventories. The guidelines will apply to all future Verra IFM management registrations.

A green revolution: How forests are changing and what it means for the planet [Phys] (Courtesy of Nature for Climate)

• A new Study in the Journal of Remote Sensing provides a worldwide categorization of forest management types, and overviews the landscape of change, including loss of natural stocks and replacement with managed plantations, and the spread of agroforestry systems. The study is expected to provide an essential baseline for policy makers and nature-conscious forest investors.

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