April 8 - April 12, 2024

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‍Your Newsletter at a Glance

‍Commentary by C4C

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In this Issue: $5.9 Billion across 22 deals in climate (5.3 billion) nature-based solutions ($76 million), and hard to abate industries ($508 million).

10 Essential deals and commitments:

Climate:

• Greece plans a $2.3 billion investment in climate resilience
• RWE issues $2 billion in green bonds
• Sumitomo Forestry and JTR form a $790 million sustainable buildings partnership
• BNP Paribas signs $548 million agreement to finance IFC projects in Poland
• Nexamp raises $520 million to support the rollout of community solar across the U.S
• Copenhagen Infrastructure Partners acquires a majority stake in Elgin for $312 million

Nature based Solutions:

• Windfall Bio raises $28 million to support microbial-based methane reduction
• FAO launches a $16 sustainable agriculture project in Uganda
• Western Australia and Rio Tinto invest $13.7 million in a nature-focused fund

Hard to Abate Sectors

• enfinium invests $250 million in CCS project

Policy & regulatory highlights

• SBTI decision on inclusion of carbon offsets for scope 3 emissions draws internal criticism and delays rules until July
• EU Parliament approves carbon removal certification framework
• US DOI tightens rules and rases royalty rates on abandoned oil & gas wells

Climate & NbS Finance

• The World Bank announces combined and streamlined impact metrics
• A survey finds only 12% of Asian institutional investors have made transition finance plans

Emerging Science

• Orbitas releases a new report on climate change impacts on Brazilian soy production
• University of Maryland study maps the impact of climate change on rainfall
• A new Science study quantifies previously uncounted stores of soil inorganic carbon

C4C News and Events

Learn more about what we're doing

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Nature-based Solutions ≥ $1M

Commitments and deals

Deals

Windfall bio raises $28M in series A funding [finsmes]

• Windfall Bio, a California-based methane-to-value company, has raised $28 million in Series A funding. The round was led by Prelude Ventures in collaboration with Amazon's Climate Pledge Fund, Global Brain, Incite Ventures, and Positive Ventures, among others. The funding will be used to expand pilot deployments of the company's methane-eating microbe solutions.

FAO launches €15 million sustainable forestry initiative in Uganda [farmers review africa]

• The FAO has launched a $16 million project to support sustainable forestry in Uganda. The funding will be focused on providing resources for the adoption of sustainable agroforestry practices.

UK’s Water Restoration Fund to use $13.7 million in penalties to restore waterways [bracknell news]

• The Water Restoration Fund has opened for applications by landowners, non profits, and other local groups to restore natural areas in England, funded by fines and penalties levied on water companies for sewage dumping.

Western Australia and Rio Tinto invest $13.7 million in biodiversity investment accelerator [startup daily]

• Western Australia's government will invest AUD 21.6 million ($13.7 million) over the next 2 years to support the tech accelerator Founder's Factory's investments across nature and biodiversity-related sectors, including reforestation, land management, regenerative agriculture, and sustainable infrastructure. The funds will be distributed across 72 startups operating in Western Australia.

Sustainable fish farming startup Peptobiotics raises $6.2 million [the fish site]

• Peptobiotics, a peptide startup focused on replacing aquatic use of antibiotics with antimicrobial peptides, has raised $6.2 million in its series A funding round, led by Hatch's Blue Revolution Fund. The funding will be utilized to further develop the company's technology and move towards commercialization.

$4.4 million investment in Oregon ecosystem restoration announced [currypilot]

• $4.4 million in bipartisan infrastructure will be invested in 8 ecosystem restoration projects across Oregon by the BLM.  

Climate Finance ≥ $100M

Commitments and deals

Commitments

Toyota launches new $150 million climate venture fund [esg today]

• Toyota has launched its second Toyota Ventures Climate Fund, which invests in startups focused on climate and environmental sustainability solutions. The new fund will build on the initial funds investments in batteries and energy storage, carbon capture and removal, and hydrogen.

ODDO plans to raise €100 million Climate ELTIF [new private markets]

• ODDO BHF Asset Management has announced a goal to raise €100 million ($107 million) for its Commit for Tomorrow fund, which will be structured as an ELTIF. The ELTIF will invest across 3 themes: energy efficiency and decarbonization; renewables and transition infrastructure; and circular economy and resource management.

Bermudian Ocean Prosperity Fund seeks $100 million in blue economy investments [royal gazette]

• The government of Bermuda has announced a $100 million target "Bermuda Ocean Prosperity Fund '' which aims to raise $100 million to support the country's blue economy expansion. The Ocean Fund will invest in concert with an associated green fund, and also support a blue economy incubator program for local industries.

Deals

Greece invests $2.327 billion to protect country from climate disasters [bna bloomberg]

• Greece has announced an investment of €2.1 billion to help improve the country's infrastructure and natural resources resilience to climate change after a series of devastating wildfires. The investment includes creating a wildfire detection and monitoring program called AEGIS which will be the first of its kind in Greece.

RWE issues $2 billion green bond [recharge] [recharge news]

• RWE has issued its first ever dollar-denominated green bond with two branches of $1 billion, one with a 10-year tenor and another with a 30-year tenor. The proceeds are expected to be used on the "growing green" investment and growth program which will invest in hydrogen, renewable energies, batteries and other green infrastructure projects.

Biden administration awards $830 million in climate resiliency grants [abc news]

• The Biden administration has awarded $830 million in climate resilience funding from the 2021 Bipartisan Infrastructure Law. The funding will go to 80 projects across 37 states and focus on hardening transportation and other infrastructure against climate shocks. The recipients include flood control projects in Colorado, bridge repairs in Iowa, and stormwater upgrades in Michigan, among others.

Sumitomo Forestry and BTR JV form $790 million sustainable housing joint venture [mingtiandi]

• Sumitomo Forestry and Cedar Pacific have formed a $790 million joint venture focused on developing cross-laminated timber sustainable housing in Australia. The company's plan to develop net carbon neutral facilities constructed with timber technologies.

BNP Paribas signs $548 million agreement with IFC on sustainable risk transfer [environmental finance]

• BNP Paribas Poland has agreed to a $548 million Synthetic significant risk transfer transaction with the IFC to help the company support sustainable loan issuance. The Synthetic SRT will focus on renewable energy, water efficiency, and clean transportation projects in Poland.

Nexamp raises $520 million to support community solar [renwables now]

• Nexamp has raised $520 million to support community solar expansion across the United States, in a raise led by Manulife Investment Management. The capital will be used to advance the company's project pipeline, build partnerships, and grow its generation offerings.

Babcock & Wilcox announces $500 million in signed contracts [business wire]

• Babcock & Wilcox has announced signed contracts of $500 million for its projects, expanding its renewable energy and hard to abate sector infrastructure technologies.

National Grid reaches $450 million in climate tech deployments [pr newswire]

• National Grid Partners, the venture capital arm of National Grid, has announced that its climate tech investments have reached $450 million over 50 investments since 2018, with a recent $17 million investment across several sectors. The 3 new portfolio companies added were Captura, Luminance, and Transcend.

EIB invests €400 million in Estonian green and digital expansion [agenparl]

• The European Investment Bank has approved €400 million ($425 million) to support Estonia's low-carbon economy investment program. The funds will be used to finance projects focused on accelerating decarbonization and the climate transition.

EU Commission allows $380 million German hydrogen investment to go through [carbon herald]

• The European commission has approved a $380 million state aid plan by the government of Germany focused on supporting renewable hydrogen production through the European Hydrogen Bank's Auctions-as-a-Service tool. The scheme is expected to support the establishment of 90 MW of electrolysis capacity.

CIP acquires Elgin energy for $312 million [environmental finance]

• Copenhagen Infrastructure Partners has acquired a majority stake in Elgin Energy for €250 million ($312 million). The Investment will support the expansion of Elgin's 15GW solar PV and battery project pipeline. The investment was made through CIP's fifth fund.

Fidelity raises €200 million in initial close of second climate impact fund [delano]

• Fidelity International has closed its second real estate logistics climate fund, raising €200 million ($207 million.) The fund received major support from Rest Super, an Australian retirement fund, which committed  €80 million in its first close. The fund will focus on providing logistics for energy-efficient facilities and accelerating the transition in the built environment.

Switzerland Commits $148 million to Green Climate Fund [argus media]

• The Swiss Federal Council will contribute $148 million to the UN’s Green Climate Fund over the next 4 years, its 3rd major contribution to the fund.

Grupo Cerro issues $98 million in green bonds [latin lawyer]

• Chilean renewables company Grupo Cerro has issued $98 million worth of green bonds with the cooperation of Milbank and Morales & Besa.

SunCulture raises $27.5 million for solar powered irrigation [disrupt africa]

• SunCulture has raised $27.5 million in series B funding to support its distributed solar systems for smallholder irrigation in Sub-Saharan Africa. Major investors were Reed Hastings, InfraCo Africa Limited, Acumen Fund, and the Schmidt Family Foundation. The investments will be used to expand the company's product line and expand into new markets.

Montauk Climate raises $8.5 million [alley watch]

• Montauk Climate, a VC firm focused on climate tech, has raised $8.5 million to support its initial incubator system. The company's initial investments will be focused on a portfolio of climate tech companies in data centers, electrification, weather data aggregation, and insurance.

Hard to Abate Sectors ≥ $1M

Commitments and deals

Deals

Enfinium receives $250 million investment for CCS plant [carbon herald]

• Enfinium, a UK-based energy from waste operator, will invest $250 million in its Parc Adfer energy from waste facility, which has an expected capture capacity of 235,000 metric tons of carbon dioxide captured a year. The installation is expected to enable the plant to capture more CO2 than it produces.

Hy24 backs Hydrogen rental taxi business with €200 million [environmental finance]

• Hy24 acquired a majority stake in the French hydrogen mobility firm HysetCo as part of the company's €200 million ($207 million) funding round. The new funding will support plans to accelerate the company's transport decarbonization efforts.

Captura receive investments from National Grid and Translink, raising Series A to $45.3 million [carbon herald]

• Captura has increased its series A fund to $45.3 million with investments from National Grid Partners, Japan Airlines, and Translink Capital. The company continues to expand its direct ocean capture technology commercialization using the new funding.

Research and Knowledge Sharing

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Policy and Regulations

SBTI tentatively approves use of Offsets for Scope 3 emissions [SBTI], faces criticism and staff pushback [guardian] & walks back recommendations [FT]

• SBTI had a tumultuous week, beginning with a board decision opening the door to the use of carbon removal offsets to compensate for scope 3 emissions. However, reactions by staff, who argued that the decision was not taken with proper consultation and could lead to greenwashing, and pushback from other organizations, has led to any implementation being delayed and called into question. SBTI has announced that new rules will be issued in July, but will come with an added degree of uncertainty.

EU parliament approves world's first carbon removal certificate [environmental finance]

• The EU parliament has approved a certification framework for carbon removal projects. The new certification allows projects to cell ‘certified carbon removal units' for permanent carbon storage using industrial technologies, carbon farming, and carbon storage in long-lasting products. Certification is voluntary, but only certified units can meet NDCs. The new accreditation received criticism from the IETA for a lack of clarity.

Washington state passes utilities decarbonization law [cleantechnica]

• Washington State has passed the first law committing a U.S state to a full transition of utilities from gas. The bill allows utilities to merge gas and electric customers in order to pay for the decommissioning of gas lines, and requires the conversion of the state to all-electric vehicles. Legislation on geothermal sale in lieu of gas, and food waste reduction also passed.

Latest BNEF finds G-20 stalled or regressing on net-zero policies, [recharge news]

• The BNEF has found that large economies have made little progress on decarbonization programs in the past years, with scores increasing by 1% on average. The UK in particular dropped 2 % points due to the Sunak government's retreat on green targets. Australia and South Africa were outliers, increasing both of their scores by 10% or more.

Loss and Damage Fund implementation further delayed by World Bank [bretton woods project]

• Negotiations between developing countries and the World Bank regarding the Loss and Damage Fund have stalled implementation of the fund, a further delay after wealthy countries waited to appoint commissioners due to controversy over allocations. The World Bank has until June to declare if it can meet the conditions set by developing nations.

ECHR rules that insufficient climate action violates human rights [desmog]

• The European Court of Human Rights has ruled that insufficient action to tackle climate change is a violation of human rights, in response to a suit brought by the Swiss "Senior Women for Climate Protection" group. The implications of the ruling are unclear, but could lead to future suits and requirements for government action

Canada 30% behind in climate funding [corporate knights]

• Corporate Knights new Climate Dollars initiative’s report finds that the Canadian federal government is $14 billion behind on rolling out climate funding it has committed to, representing a 30% shortfall between commitments and actual spending. The report also noted that public information about climate spending by the government was hard to come by, in contrast to other governments such as the United States.

BLM raises prices for orphaned wells [doi]

• The U.S Interior Department's Bureau of Land Management has announced a new rule that will increase royalty rates on abandoned gas bonds from a minimum of $10,000 to a minimum of $150,000 among other changes regarding wildlife habitat and royalty rates. These changes will disincentivize well abandonment and encourage the capping and clean up of existing abandoned wells.

West Virginia bans HSBC and CITI over ESG policies [environmental finance]

• West Virginia has banned HSBC, CITI, TD Bank and Northern Trust from handling the state's money due to their policies on fossil fuels, representing an escalation in the state's attacks on responsible investment.

Finance Research and Updates

World Bank releases streamlined impact metrics [Environmental Finance]

• The World Bank has released a new impact outcomes 'scorecard' for estimating climate impact across institutions, which has been hailed as a major step forward. The new impact scorecard is shared across all World Bank’s funds and has 22 indicators instead of a previous 150. All of the data and methodologies will be made available online for reference.

Survey finds just 12% of Asian investors plan to invest in climate solutions [business times]

• The Asia Investor Group on Climate Change has found that only 12% of major institutional investors in Asia have created transition plans to address their carbon emissions. Only 28% had any transition finance plans at all, with 57% feeling that they lacked the data needed to make climate smart investments.

ETS revenues reached $74 billion in 2023, according to ICAP [reuters]

• Global carbon trading revenues through Emission Trading Systems grew to $74 billion in 2023, up from $63 billion in 2022. The number of systems grew to 36, with 22 still in development or consideration.

Emerging Science

Orbitas releases report on Climate change's effect on Brazilian soybean sector [orbitas] (Courtesy of Nature4Climate)

• Orbitas, an initiative of Climate Advisers, has released a new report on the effects of climate change on Brazil's soy sector, following up on their recent report on the effects on the country's cattle industry. The report highlights potential transition impacts on the sector, and the upside potential for firms that take climate action now.

New Study from University of Maryland examines effects of climate change on rainfall patterns [phys] (Courtesy of Nature4Climate)

• Scientists at the University of Maryland have released a new study, published in Nature Reviews Earth & Environment, examining the effects of climate change on rainfall patterns worldwide. The study finds that rainfall is likely to become concentrated on fewer days, but become more intense, with the potential of exacerbating both droughts and flooding.

Study quantifies global store of soil carbon [phys] (Courtesy of Nature4Climate)

• A new study in Science provides new insights into the global soil inorganic carbon concentration, with researchers finding 2,305billion tons of carbon stored as SIC in the top 2 meters of soil worldwide. The study suggests incorporating Soil Inorganic Carbon into sequestration calculations.

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