January 13 - January 17, 2025
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In this Week’s Issue: $58.5 billion across 31 deals in Transition Finance, NbS ($1.6 billion), Hard-to-Abate industries ($490 million), and the Blue Economy ($3.8 million).
10 Essential Deals and Commitments:
Transition Finance
- Apollo and Standard Chartered launch a $3 billion target energy transition partnership
- The IRS allocates $6 billion in industrial decarbonization tax credits
- Omnes raises $2.1 billion for its renewables fund at final close
- Climate Investment Funds issues its first bond for $500 million
- responsAbility raises $350 million for a an Asia-focused climate tech fund
Nature-based Solutions
- New Forests raises $376.6 million for its landscape forestry fund
- NatureMetrics secures $25 million to scale its biodiversity data program
Hard-to-Abate Emissions
Carbon Removal
Blue Economy
News Highlights
Policy and Regulation
- A new UNEP report examines global nature-related banking regulations
- The EU releases carbon dioxide removal recommendations following a delay
- The Biden Administration manages to disburse 84% of IRA grants before Trump’s inauguration
Climate & NbS Finance
- The Bank of China joins the TNFD
- The Financial Sustainability Board publishes a draft framework on early warning systems for climate-related risk
- Canadian banks withdraw from the NZBA, following U.S bank departures
Emerging Science
- A new study in Science suggests alternative building materials could store 16.6 billion metric tons of CO2 annually
- Record heat levels are worsening air pollution and public health
- A new study suggests coral reef restoration is effective as coastal flood control
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Nature-based Solutions ≥ $1M
Commitments and deals
Deals
Google signs largest-ever biochar carbon removal purchase deals [esg today]
- Google has signed its largest-ever biochar carbon removal agreements, partnering with India's Varaha and California's Charm Industrial to purchase 200,000 tonnes of carbon removal credits by 2030, with each company providing 100,000 tonnes through projects that combine carbon sequestration with additional environmental benefits such as soil fertility improvement and invasive species management.
- BeZero Carbon has secured $32 million to expand its platform into new markets including compliance and aviation carbon markets, while enhancing its AI capabilities and analytics, following the success of its rating system which has established a 40% price premium correlation between carbon project quality and credit prices.
NatureMetrics raises $25 million to scale biodiversity monitoring and reporting platform [esg today]
- NatureMetrics has secured $25 million to scale its biodiversity monitoring platform, which uses environmental DNA analyzing technology to help companies measure and report on nature impacts, serving over 600 clients across 110 countries with solutions that align with new regulatory requirements and frameworks, including TNFD recommendations, EU CSRD, and SBTN guidelines.
Mercuria Energy Group invests $2.3 million in Tocantins carbon credits [capital reset]
- Mercuria Energy Group invests $2.3 million in natural solutions through carbon credits in Tocantins, Brazil, which has become the first sub-national division globally to receive certification under the jurisdictional carbon credit system.
NativState releases first 400,000 carbon credits from Louisiana forest project [carbon herald]
- NativState has released over 400,000 carbon credits from its Bottomland Forests of Louisiana Plains project, which manages 20,000 acres of sustainable forestland across Louisiana and Mississippi in partnership with 19 families, with expectations to generate more than 2 million credits over the project's 40-year lifespan while promoting biodiversity and water quality in the Mississippi River Watershed.
- Suzano Ventures, the VC arm of Brazil-based pulp and paper producer Suzano, has made a follow-on investment in Marvin (at an undisclosed amount), an AI-powered land use and supply chain management startup. The investment follows successful field trials of Marvin’s geospatial technology across Suzano’s 27,000 square kilometers of farms and forests, leading to a multi-year commercial agreement. Marvin’s platform will support Suzano with risk management, yield prediction, carbon measurement, and forest certification to address climate risks.
- Private equity-backed re.green, supported by Joao Moreira Salles and other asset managers, has partnered with Agro Penido to restore 600 hectares of degraded Amazonian land near the Xingu Indigenous Park in Mato Grosso. The project aims to produce 300,000 carbon credits and potential lumber yield, with Agro Penido evaluating expansion to 1,200 hectares. This initiative is part of re.green's broader goal to restore one million hectares of Brazilian land, building on its prior deal to restore 15,000 hectares with Microsoft.
Sistema.bio raises $3.5 million to expand renewable energy solutions for African farmers [techpoint]
- Sistema.bio, a Nairobi-based company, has secured $3.5 million from Novastar Ventures as part of a $7.75 million round to scale its biogas technology and digital solutions across Africa. The investment, from the Africa People + Planet Fund III, supports Sistema.bio’s mission to reduce greenhouse gas emissions and enhance energy access for smallholder farmers. Operating in 31 countries, Sistema.bio enables farmers to convert waste into renewable energy and biofertilizer, impacting over 100,000 farmers. The deal also strengthens their digital monitoring capabilities through the acquisition of Inclusive Energy.
Formo secures $35.8 million from EIB to scale fermentation-based protein products [green queen]
- Formo, a German fermentation startup specializing in dairy and egg alternatives, has secured €35 million ($35.8 million) in venture debt from the European Investment Bank (EIB) to scale up production and pursue regulatory approval for its animal-free casein protein in the US and EU. This follows a €61 million ($63 million) Series B round in September 2024. The funds will also support new product development through Formo’s micro fermentation platform. The EIB's investment is part of the InvestEU scheme, aligning with EU goals to support innovative and sustainable food systems.
- Four spirits companies—Brown-Forman, Diageo North America, Heaven Hill Brands, and Suntory Global Spirits—and the Kentucky Distillers’ Association are investing $2.8 million in a five-year initiative to support regenerative farming for Kentucky corn farmers. The program will cover over 100,000 acres, providing tools, resources, and conservation specialists to enhance soil, water, and biodiversity health while maintaining farmer profitability. Precision Conservation Management and the Kentucky Corn Growers Association will partner in the initiative to ensure practical implementation and support for farmers.
- Colossal Biosciences has raised $200 million in a Series C round at a $10.2 billion valuation, led by TWG Global. The company hopes to de-extinct species like the woolly mammoth, Tasmanian tiger, and dodo, leveraging technologies such as gene editing and artificial wombs. Beyond conservation, it plans to spin off businesses in artificial wombs and other technologies with broader applications, alongside potential revenue from biodiversity credits and government collaborations.
NFWF issues $30.2 million in grants [candid]
- The National Fish and Wildlife Foundation has announced $30.2 million in grants across multiple conservation programs, with the largest portion supporting regenerative agriculture in the Midwest, while additional funds will support freshwater habitat restoration in the Southeast, mine land rehabilitation in the Cumberland Plateau, and forest and grassland conservation in Appalachia and the Northeast, collectively leveraging $17.7 million in matching contributions.
U.S. Fish and Wildlife Service provides $.1.3 billion in conservation funding [fws]
- The U.S. Fish and Wildlife Service has announced over $1.3 billion in funding for state conservation efforts, generated from federal excise taxes on sporting equipment, as part of a century-old partnership that has distributed more than $29 billion since 1937 to support wildlife management, habitat conservation, and outdoor recreation access across the nation.
Fund Formation
New Forests raises $375.6 million for Australia/New Zealand landscape forestry fund [fea]
- New Forests raised $375.6 million from European and Asia-Pacific institutional investors to invest in integrated forestry, agriculture, and carbon markets across Australia and New Zealand, with a focus on maximizing landscape value through multiple revenue streams, including renewable energy and biodiversity.
Transition Finance ≥ $100M
Commitments and deals
Commitments
New York Governor commits $1 billion to decarbonize economy [esg today]
- New York Governor has announced a $1 billion investment plan to decarbonize the state's economy through renewable energy initiatives, nuclear technology exploration, and various green infrastructure projects. The announcement also extends the implementation timeline for the state's cap-and-invest program to allow for more public input.
Apollo, Standard Chartered form $3 billion energy transition partnership [esg today]
- Apollo Global Management and Standard Chartered PLC have partnered to invest up to $3 billion in infrastructure deals, renewable energy, and low-carbon transition projects. Through Apollo’s sustainable investing platform, Apollo Clean Transition Capital, and with a focus on debt financing, the collaboration aims to support the energy transition. The deal is backed by Apollo’s Apterra platform, which will originate infrastructure debt, and Standard Chartered has taken a minority stake in this platform. This partnership highlights the growing role of private capital in the energy transition sector.
- The U.S. IRS has allocated $6 billion in tax credits to over 140 projects under the 48C program, funded by the Inflation Reduction Act. These credits support clean energy manufacturing, industrial decarbonization, and critical materials processing, with $2.5 billion targeting energy communities with closed coal mines or plants. Selected projects include clean hydrogen, EV components, and materials recycling, aiming to reduce 2.8 million tons of CO2.
White Summit raises a $363 million decarbonization fund [environmental finance]
- White Summit Capital has reached a first close of $363 million for its second decarbonization infrastructure fund, which targets €500 million ($522 million) to invest in Western European mid-market infrastructure projects across renewables, sustainable transportation, and industrial decarbonization.
Schroders awarded $6.3 billion sustainable investing mandate by SJP [esg news]
- Schroders has been awarded a £5.2 billion ($6.3 billion) sustainable investment mandate by St. James’s Place (SJP) to manage the SJP Sustainable & Responsible Equity Fund. The mandate aligns with SJP’s transition to meet the FCA’s Sustainability Focus label under new SDR rules, which aim to enhance transparency and avoid greenwashing.
- The U.S. Department of Energy has approved a $1.67 billion loan guarantee to Montana Renewables for expanding its Great Falls facility, which will more than double its biofuel production to 315 million gallons annually, positioning it to supply approximately half of North America's sustainable aviation fuel (SAF). The project, which includes creating 490 jobs and prioritizing local hiring, supports the Biden Administration's broader goals for SAF production while aiming to benefit disadvantaged communities through the Justice40 Initiative.
US DOE unveils $22.9bn of loan commitments for utility projects [renewables now]
- The U.S. Department of Energy's Loan Programs Office has announced $22.92 billion in conditional loan guarantees to utilities across 12 states, supporting a wide range of clean energy and infrastructure projects. The funding, part of the Energy Infrastructure Reinvestment program, will finance transmission projects, renewable energy generation, energy storage, grid modernization, and gas pipeline improvements, benefiting over 14 million customers through major utilities including DTE Energy, Consumers Energy, PacifiCorp, and Alliant Energy.
EIB finances $114 million for Calvados education and green projects [trend news agency]
- The European Investment Bank (EIB) has signed a €110 million ($114 million), 25-year financing agreement with the Calvados Department of France to modernize educational infrastructure and green public facilities as part of its Vision 2030 roadmap. The funds will support energy-efficient upgrades for schools, cultural institutions, daycare centers, and museums, including replacing fossil fuel boilers with renewable solutions and enhancing digital education equipment. These improvements aim to reduce carbon emissions, enhance climate resilience, and benefit 4,500 students across the region.
OnPath Energy commits $1.2 billion investment in UK renewables and energy storage [edie]
- OnPath Energy has committed to a £1 billion ($1.2 billion) investment in UK-based renewables and energy storage, focusing on onshore wind farms, solar projects, and energy storage infrastructure over the next five years. The company currently operates 143MW of wind projects, with 200MW consented and 260MW in planning. It also has 300MW of battery storage projects in development. OnPath's expansion aligns with the UK's 2030 clean power grid target, supported by recent policy changes, including the removal of barriers to onshore wind development.
- Ecozen has raised $23 million in debt funding from responsAbility Investments AG, Northern Arc Capital, and Maanaveeya Development & Finance to scale its climate-smart solutions, expand operations, and enhance its sustainable technology offerings. With a CAGR of 83% in the last three years, Ecozen has mitigated over 2 million metric tons of greenhouse gas emissions through products like Ecotron solar pump controllers and the Omni Controller. The funding will support new product launches, increased market share in India, and expansion into Europe and SAARC regions.
DOE LPO finalizes $16 billion in loans ahead of Trump inauguration [latitude media]
- The Department of Energy's Loan Programs Office finalized three major loans totaling over $16 billion, including a $15 billion loan to PG&E for clean energy infrastructure, while also announcing four new conditional commitments, bringing the Biden administration's total agreements through the LPO to 53 deals worth $107.58 billion in project investments.
DOE provides Plug Power with a $1.66 billion loan guarantee [doe]
- The U.S. Department of Energy has announced a $1.66 billion loan guarantee to Plug Power to construct six clean hydrogen production facilities across multiple states, utilizing American-made PEM electrolyzer technology that will create hundreds of jobs, reduce greenhouse gas emissions by 84% compared to conventional production, and support major companies while advancing the Biden Administration's clean energy and domestic manufacturing goals.
DOE invests $100 million in carbon conversion [doe]
- The U.S. Department of Energy has announced $100 million in federal funding from the Bipartisan Infrastructure Law to support pilot-scale testing of carbon conversion technologies that transform captured industrial carbon emissions into valuable products through biological, catalytic, or mineralization pathways, to demonstrate feasibility and advance commercialization of these sustainable solutions.
Fund Formation
Algebris launches $104 million climate tech venture fund [esg today]
- Algebris Investments has launched Algebris Climatech, its first venture fund targeting climate and deep tech startups, raising €60 million ($62 million) in its first close toward a €100 million ($104 million) target, with the Article 9 fund planning to build a portfolio of 15-20 positions in companies across energy, materials, industrials, and food sectors.
Omnes closes a $2.1 billion renewables fund [environmental finance]
- Omnes has closed its Capenergie 5 fund at $2.1 billion, exceeding its $1.36 billion target, with the fund focusing on European renewable energy developers and having already invested in seven projects with a combined capacity of 21.9GW across 13 countries, bringing Omnes's total assets under management to $4.49 billion.
Women Empowerment Climate Fund targets a $100 million raise [new private markets]
- A new joint venture fund, the Women Empowerment for Climate Fund, aims to raise $100 million to finance climate adaptation projects led by women. Experienced impact investors back the fund and focuson increasing financial inclusion and gender equity in the climate sector. It targets the Asia-Pacific and Middle Eastern/African regions.
responsAbility raises $350 million for Asia-focused climate tech investments [esg today]
- M&G's responsAbility Investments has raised over $350 million for its Asia Climate Strategy, targeting $500 million by 2024 to invest in renewable energy, battery storage, energy efficiency, e-mobility, and the circular economy. The fund, launched in November 2023, aims to achieve 16 million tons of CO2 emissions reductions and has mobilized over $200 million from private investors, alongside $154 million from public and development finance institutions. The strategy focuses on accelerating Asia's energy transition, addressing the region's significant share of global CO2 emissions and growing energy demand.
Green Bonds ≥ $100M
Commitments and deals
New Issuances
NIB raises $175 million from 2025 green bond issuance [environmental finance]
- Nordic Investment Bank (NIB) has launched its 2025 green bond program with a NOK2 billion ($175 million) issuance, marking the first green bond of the year under its Environmental Bond (NEB) initiative. Around 10 domestic Norwegian investors backed the five-year bond, following a record-breaking sustainable bond issuance in 2024.
Climate Investment Funds issues $500 million debut bond for clean energy transition [reuters]
- Climate Investment Funds (CIF) has issued a $500 million debut bond via its Capital Markets Mechanism to finance low-carbon technologies in emerging markets. The bond, priced at 36.6 basis points over Treasuries with a 4.75% coupon, was oversubscribed sixfold with $3 billion in orders. This marks a shift to sustainable funding sources for CIF's Clean Technology Fund, which supports projects like battery storage and coal transition. CIF plans to regularly issue bonds to attract private sector investments and mitigate reliance on uncertain development aid.
- Swedavia issued SEK 2 billion ($180.2 million) in green bonds under its MTN program on 9 January, with tranches featuring fixed and variable rates, and maturities of 3 to 5.25 years. The proceeds will fund sustainable investments and refinance existing bonds, aligning with Swedavia’s sustainability strategy.
Completed Issuances
CCMM issues a $500 million bond [environmental finance]
- The Climate Investment Funds Capital Markets Mechanism (CCMM) has issued its inaugural $500 million bond, marking the first time a multilateral climate fund has accessed capital markets, with the six-times oversubscribed transaction aimed at accelerating climate finance for clean technology and infrastructure projects in developing countries through the Clean Technology Fund.
IFC raises $2bn from largest social bond [environmental finance]
- The International Finance Corporation has issued its largest-ever social bond at $2 billion, which was five times oversubscribed with an $11 billion order book, marking strong investor demand for instruments supporting essential projects in emerging markets such as health, education, and food security.
Norsk Hydro ASA issues $521 million in green bonds [al circle]
- Norsk Hydro ASA has issued a $521 million green bond with a seven-year tenure and 3.625% fixed annual coupon, with proceeds to be used for environmentally friendly projects under the company's Green and Sustainability-Linked Financing Framework to support its green aluminum transition strategy.
Carbon Removal ≥ $1M
Commitments and deals
Deals
- Direct air capture technology company Origen has raised $13 million in funding to advance the deployment of its limestone-based carbon removal technology. The funds are expected to support the construction of a 1,000-metric-ton annual carbon capture facility in North Dakota.
DOE backs Leilac technology for cement and lime carbon capture projects [carbon herald]
- The US Department of Energy (DOE) awarded $1.49 million to a Roanoke Cement project (Titan Group, Leilac US Inc., Amazon, Virginia Tech) to assess Leilac technology's ability to capture 500,000+ tonnes of cement Scope 1 CO2 emissions. Separately, $1.5 million was granted to a Mississippi Lime project (Leilac US Inc., Industrial Ally, Nuada LTD) in St. Louis to explore net-zero lime production via carbon capture and alternative fuels. Both projects involve pre-FEED studies, with agreements pending.
Gigablue and SkiesFifty partner on marine carbon removal deal (at an undisclosed amount) [esg news]
- Gigablue signed a four-year agreement with SkiesFifty (at an undisclosed amount) to remove 200,000 tons of CO2 using its marine carbon fixation technology, which optimizes phytoplankton growth for scalable and cost-effective sequestration. Validated by NIWA, this deal supports SkiesFifty’s decarbonization strategy amid the aviation sector’s sustainable aviation fuel supply gap.
Hard to Abate Sectors ≥ $1M
Commitments and deals
Deals
SWEN leads $38.1 million funding round in UK green hydrogen business [environmental finance]
- Hydrogen developer Protium Green Solutions has secured $38.1 million, co-led by SWEN Capital Partners and Barclays Principal Investments, with additional investments from ITOCHU Corporation and Toho Gas, to scale up its commercial projects in the UK.
Sunfire secures $207 million financing to scale hydrogen technology [sustainable times]
- Sunfire has secured €200 million ($207 million) in guaranteed financing from a consortium of European banks, led by Commerzbank, with 80% backed by German Federal and Saxony state guarantees. The financing eliminates cash collateral requirements, allowing Sunfire to scale electrolyzer production and execute industrial hydrogen projects efficiently. This five-year financing supports Europe’s hydrogen economy by advancing green hydrogen infrastructure for hard-to-abate sectors like steel and chemicals.
Brimstone secures $189 million DOE grant for green cement and alumina plant [global cement]
- Brimstone, a cleantech startup based in Oakland, California, has secured a $189 million grant from the US Department of Energy to establish a $378 million plant producing 80,000t/yr of green cement and 20,000t/yr of smelter-grade alumina. The plant, still in site selection, will be near an existing quarry to mine calcium silicate rocks, focusing on brownfield sites for sustainability. Brimstone plans to begin pilot operations in 2025, with full operations by 2030 and is testing its decarbonized cement with potential customers.
Amogy raises $56 million to spur transport decarbonization [esg today]
- Amogy raises $56 million in venture funding, co-led by Aramco Ventures and SV Investment, to accelerate the commercialization of its ammonia-based power technology for hard-to-abate sectors, following its successful demonstration of the world's first ammonia-powered vessel and bringing its total funding to over $270 million.
Blue Economy ≥ $1M
Commitments and deals
Deals
$3.8 million funding aims to boost ocean tech workforce in Rhode Island [sheldon whitehouse]
- Rhode Island's Ocean Tech Works project, led by the University of Rhode Island Research Foundation, received $3.8 million from the EDA’s Good Jobs Challenge, funded by the American Rescue Plan Act. The initiative aims to expand the regional Blue Economy workforce by offering free, accelerated training in ocean technology fields such as robotics, advanced manufacturing, and composites. Coordinated by Polaris MEP and involving public, private, and educational partners, the program targets filling 400 high-demand positions while fostering economic growth in Rhode Island and southeastern Massachusetts.
Research and Knowledge Sharing
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Policy and Regulations
Heathrow targets 3% SAF use in 2025, 11% in 2030 [esg today]
- London's Heathrow Airport has announced a $104 million Sustainable Aviation Fuel incentive scheme to help airlines bridge the price gap with conventional jet fuel, aiming to achieve 3% SAF usage by 2025 and 11% by 2030, exceeding the UK's national mandate targets while targeting a reduction of 500,000 tonnes in lifecycle carbon emissions.
South Korea and Turkiye scuttle effort to end export credit for oil and gas [climate home news]
- Opposition from South Korea and Türkiye, coupled with limited U.S. support, has derailed an OECD initiative to end export credit support for overseas oil and gas projects before Trump's inauguration, leaving the $40 billion annual fossil fuel financing practice intact.
- Gabon has introduced a sovereign carbon initiative requiring air and shipping operators to pay a $17 per tonne emissions contribution for journeys to and from the country, while also including provisions for offsetting through CORSIA-eligible carbon credits.
EU advisory board to release delayed carbon dioxide removal recommendations [environmental finance]
- The EU’s European Scientific Advisory Board on Climate Change will release recommendations on scaling carbon dioxide removals early this year, delayed from last summer. The report will address costs, risks, and governance, building on the EU’s 2025 work program and last year’s certification framework for carbon removal projects. It will contribute to post-2030 climate policy, covering technical removals, land use, and forestry, alongside separate recommendations for integrating climate mitigation in the Common Agricultural Policy (CAP).
Biden Admin disburses 84% of IRA grants ahead of trump return [reuters]
- The Biden administration has secured 84% ($96.7 billion) of Inflation Reduction Act clean energy grants through signed contracts with recipients, protecting these investments from potential clawback by the incoming Trump administration, with major allocations including $38 billion to the EPA, $9.45 billion for agricultural clean energy programs, and $8.8 billion for energy efficiency initiatives.
The FED withdraws from a central bank net zero network [reuters]
- The U.S. Federal Reserve has withdrawn from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), citing the group's expanded scope falling outside its mandate, with the exit coming days before Trump's inauguration and amid similar withdrawals from climate initiatives by major financial institutions including the Bank of Montreal and several U.S. banks.
U.S. proposes stronger safety rules for CO2 pipelines [reuters]
- The U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) proposed regulations to enhance safety for carbon dioxide and hazardous liquid pipelines amid rising adoption of carbon capture technologies. The rules include new standards for gaseous CO2 transport and detailed vapor dispersion analyses to mitigate risks. These measures follow incidents like Denbury's 2020 pipeline rupture in Mississippi, which caused evacuations and hospitalizations.
2025 Policy spotlight: what’s next for EU nature and climate action [birdlife]
- The European Commission faces several critical environmental policy challenges in 2025, including the launch of its new 'Vision for Agriculture and Food', the implementation of the EU Nature Restoration Law, and ongoing debates over wolf protection following the Bern Convention's decision to lower their protection status. Additionally, the Commission needs to address its delayed proposal on lead ammunition restrictions, while ensuring that national nature restoration plans are developed and implemented effectively to meet the EU's biodiversity goals.
UNEP releases a report mapping nature-related regulations for banks [unepfi]
- A new report by UNEP FI and WWF reveals an increase in nature-related banking regulations globally, with central banks and supervisors in 29 jurisdictions (representing over €75 trillion in banking assets) now incorporating nature risk into their prudential frameworks. The Global South, particularly Brazil and Southeast Asian nations, is showing notable leadership in this area, while the report emphasizes the need for a coordinated approach to enhance data availability, risk measurement, and policies addressing nature loss.
Finance Research and Updates
BlackRock launches a SDR-labelled fund [environmental finance]
- BlackRock has launched its first UK SDR-labeled fund, the BlackRock BFM Brown to Green Materials Fund, which will invest in companies from high-emission sectors (such as metals, mining, cement, and chemicals) that are essential for the low-carbon transition and have credible decarbonization plans. The fund, which builds on a similar European strategy and requires 70% of assets to contribute to sustainability objectives, aims to capitalize on overlooked opportunities in these transitioning sectors.
- The Financial Stability Board (FSB) has published a draft framework designed to help regulators assess and quantify climate-related financial risks, featuring forward-looking metrics and analysis tools to track how climate events impact the financial system. The framework emphasizes that climate risks are systemic and can cascade through the global economy, affecting financial stability through both direct impacts and indirect exposures across asset locations, value chains, and sectors.
Record number of new VCM entrants in 2024 a positive sign for the market [carbon pulse]
- The voluntary carbon market showed signs of growth with a record number of new market participants entering the space, indicating continued interest in carbon trading despite challenging market conditions.
ISS ESG report underscores deforestation risks and investor opportunities [esg news]
- ISS ESG has released its inaugural report, "The Root Cause of Nature Loss," highlighting that over 84% of the Nature Action 100 portfolio has significant biodiversity impacts due to deforestation. The report details deforestation risks—physical, transition, and systemic—and emphasizes the growing role of regulations like the EU Deforestation Regulation (EUDR) in driving transparency. ISS ESG also outlines opportunities for investors through advancements in nature-related data and solutions, aiding risk mitigation and portfolio alignment.
Bank of China joins TNFD and supports consultation groups in China [environmental finance]
- The Bank of China has joined the Taskforce on Nature-related Financial Disclosures (TNFD), becoming the first Chinese financial institution to do so. It will advise on guidance and data initiatives to boost TNFD engagement in China. Additionally, TNFD has launched two consultation groups: one on the mainland, hosted by the Institute of Finance and Sustainability, and one in Hong Kong, led by the Hong Kong Green Finance Association and the Business Environment Council. These groups join 16 others globally.
Canadian banks reconsider commitment to Net-Zero Banking Alliance [the energy mix]
- Several Canadian banks, including RBC and BMO, have announced their withdrawal from the Net-Zero Banking Alliance (NZBA), following similar exits by major U.S. banks. These departures reflect rising pressure from politicians, especially in the U.S., which view such climate alliances as a threat to fossil fuel interests. While these institutions reaffirm their commitment to a low-carbon economy, they signal challenges in aligning with the stringent net-zero commitments set by NZBA. The shifts are seen as part of broader skepticism over the feasibility of financial sector climate initiatives.
Regenagri launches global carbon insetting program for farmers [yahoo finance]
- Regenagri has launched the world’s first global carbon insetting program, enabling farmers to monetize sustainable practices through Regenagri certification. The program helps companies reduce their carbon footprints by investing in regenerative agriculture, reforestation, and renewable energy within their supply chains. Initially, farms across the U.S., Brazil, India, Turkey, Ivory Coast, and Pakistan, covering 871,827 acres, have joined the initiative. Participants undergo third-party audits to validate carbon and GHG reduction data according to recognized protocols.
SAF receives over $18 billion in global investment [biofuels international]
- New analysis reveals the sustainable aviation fuel (SAF) industry has attracted $18 billion in global private investment, with the UK emerging as the fourth-largest recipient at $212.76 million, driven by supportive government policies including a newly implemented SAF mandate and upcoming financial mechanisms.
Verra Provides Compensation Update For Rejected Rice Cultivation Projects In China [carbon herald]
- Verra reports that only 480,000 of 4.56 million Verified Carbon Units have been compensated from the 37 Chinese rice cultivation projects rejected in August 2024, with two project proponents completing their compensation while others face account suspensions and potential sanctions for outstanding credits.
MIT Study: pay-as-bid auction model could boost revenues in carbon markets [carbon herald]
- MIT researchers have developed a new pay-as-bid auction model for carbon markets that could increase government revenue and better align carbon permit prices with their true societal cost (estimated at $190 per ton), while introducing an algorithm to help companies navigate the bidding process effectively in repeated market interactions.
Emerging Science
A new study looks into DAC for aviation carbon neutrality [carbon herald]
- A new study from the Institute for Environmental Decisions in Zürich comparing two Direct Air Capture (DAC) technologies for aviation finds that DACCU (Direct Air Carbon Capture and Utilization) is more cost-effective for achieving climate neutrality due to its contrail mitigation benefits, while DACCS (Direct Air Carbon Capture and Storage) is currently less expensive for carbon neutrality goals, though implementing either technology would increase flight ticket prices by 30-75%.
World’s record heat is worsening air pollution and health in Global South [mongabay]
- Record-breaking global temperatures in 2024 are intensifying air pollution and health risks across the Global South, with three key examples highlighting this crisis: New Delhi's dangerous ground-level ozone levels affecting outdoor workers, the Brazilian Amazon's unprecedented wildfires threatening Indigenous communities with toxic smoke, and Nigeria's expanding meningitis belt, where rising temperatures and dust storms are increasing disease outbreaks among vulnerable populations.
- A new Science study reveals that replacing conventional building materials with carbon-storing alternatives like wood, bio-based plastics, and carboneatable cement could potentially store 16.6 billion tonnes of CO₂ annually, equivalent to about 50% of global anthropogenic emissions in 2021, though widespread adoption would require scaling up production and ensuring cost-effectiveness and performance standards.
Study examines effectiveness of coral reef restoration as an NBS [science]
- A new study in Science suggests that restoring up to 20% of coral reefs along Florida and Puerto Rico's coastlines could provide cost-effective flood protection, with particularly significant benefits for vulnerable coastal communities including minorities, children, elderly, and low-income populations who could receive double the hazard risk reduction benefits compared to the general population.
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