January 22 - 26, 2024
Your Newsletter at a Glance
Commentary by C4C
- Adnoc allocates $2.3 billion to decarbonization. GM invests $1.4 billion in Brazilian battery electric plants. Innovation Endeavors’ fund closes $630 fund. 3Sun closes $610 funding round for Italian solar plant. Blackrock takes a 20% equity stake in Recurrent Energy for $500 million. NOAA puts $85 million into climate prediction technology. Infinite Roots secures $58 million investment for mycelium protein. Ceezer raises $11.43 million in series A funding. Canada announces $9.52 partnerships in indigenous led climate solutions. U.S. companies express $8 billion interest in Vietnamese energy investments, and more.
Policy and Regulation
- Republican house committee attacks Biden administration’s ties to CDP and SBTI
- Europe’s compliance carbon market loses value and trade volume amid economic slowdown
- UN sets up new database for tracking monetary damage from natural disasters
- Biden administration pauses LNG terminal permits amid activist pressure
Climate Finance
- ExxonMobil sues to prevent activist investor motion on scope 3 emissions
- Aon finds natural disasters caused $380 billion in damage in 2023
- Amundi calls for investors to adopt planetary boundary guidelines
- Venture capital funding for energy storage rose to $9.2 billion in 2023
Emerging Science
- UK government launches research project for protecting seaweed ecosystems
- A new study in Nature finds cookstove emission reductions were overcounted by a factor of 10
- University of Sao Paulo releases study examining successful forest restoration strategies in the Brazilian Atlantic rainforest
Research and Knowledge Sharing
Grow your climate finance expertise
Climate
UN sets up database to support Loss and Damage fund set up at COP [Eco-business]
- The UN Office for Disaster Risk Reduction is building a new global "disaster losses and damages" tracking system with the World Meteorological Organization. The new database will replace the existing DesInventar disaster tracking system, and will be interlinked with other systems to help provide accurate accounting of disasters.
Aon study finds Natural Disasters caused $380 billion in economic damage in 2023 [Businessgreen]
- The economic impact of natural disasters continues to multiply under the influence of climate change, with Aon estimating that 398 cataloged disasters caused $380 billion in economic losses over the course of the year, 22 percent above the 22 year annual average, with insurance losses 31 percent over the 2000s average. This tracks with other research showing global economic damage from natural disasters increasing on average throughout the past 2 decades.
173 companies lose SBTI validation in 2023, Including Amazon [Eco-business]
- While 4,000 businesses had SBTI approved climate targets at COP28, some companies are having their certifications removed due to a lack of credible climate targets. Amazon's pledge was dropped as well as several large Asia-Pacific firms including Hongkong & Shanghai Hotels group, Peninsula Hotels, Godrej & Boyce, and Yahoo Japan.
- Mercom Capital Group has released its 2023 funding, merger and acquisition report for the energy storage sector finding that VC funding reached its highest ever level in the sector at $9.2 billion across 86 deals, largely as a consequence of Inflation Reduction Act incentives.
More than $300 Billion in Certified Climate Bonds released in 2023 [Climatebonds]
- Over $300 billion in climate bonds were certified in 2023, extending to 16 sectors and 30 types of debt instruments, according to a new report by the Climate Bonds Initiative.
HSBC launches Net Zero Transition Plan [ESGtoday]
- HSBC has launched a net zero transition plan, setting short term goals for reducing its financed emission footprint within carbon intensive sectors and supporting customers with $750 billion to $1 trillion in transition financing. HSBC is a member of the Glasgow Financial Alliance for Net Zero's Net Zero Banking Alliance (NZBA) which provides Financial Institutions with tools for developing net zero strategies.
ExxonMobil sues to prevent shareholder proposal on climate change [Fox Business]
- Exxon has filed a complaint in the Northern District of Texas aiming to prevent a shareholder proposal for acknowledging scope 3 emissions. The proposal is similar to a previous proposal that was not approved. The judge hearing the case is generally considered friendly to conservative litigants, and the case could potentially set pitfalls for future similar proposals at Exxon and elsewhere.
- The Republican majority in the U.S. house is beginning to voice criticism of the relationship between the administration and the SBTI and CDP. The house science committee alleges that the Biden administration's proposed rules requiring companies to catalog and disclose their greenhouse gas emissions will improperly benefit the CDP and SBTI, due to the relationship between those organizations and liberal donors.
Biden administration pauses LNG terminal construction [The Guardian]
- The Biden administration has announced it will pause the issuance of export permits for Liquified Natural Gas until the department of energy updates its criteria for approval along lines that consider the terminal's climate impacts. This will likely put more than a dozen new gas export terminals on pause, and has been hailed as a victory by organizations like the Environmental Defense Fund, but will likely face major pushback from the fossil fuel industry.
- The Biden Administration has released its annual "America the Beautiful" report outlining its 2023 progress on ecosystem protection and restoration goals, including a $1.4 billion investment through the recent bi-partisan infrastructure law.
QBE launches fund focused on accelerating climate solutions innovation [PR Newswire]
- QBE North America has launched the QBE Possibilities Fund, which focuses on supporting early-stage climate solutions companies. The partnership focuses on philanthropic capital provided through impact assets, and has made investments in Azolla Ventures and ReGen Ventures.
- Bloomberg reports that the European Union's compliance carbon market is struggling into 2024 with the worst start since 2014. Benchmark futures are at their lowest level since March 22 and contracts have fallen 40% since their February 2023 record, with prices starting the year below Euro 65. Analysts primarily credit falling carbon emissions and struggling economic growth.
Study finds cookstove based carbon credits overestimated emissions reductions by 10x [Phys.org]
- A study in Nature Sustainability conducted by scientists from UC Berkeley finds that clean cookstove adoption based carbon emission reduction credits are overstated by potentially as much as a factor of 10. The study found that over-crediting resulted primarily from exaggeration of stove adoption. It also found that not all methodologies were overvalued to the same extent, with Gold Standard's only being overvalued by a factor of 1.5.
IIGC releases Scope 3 emissions paper [IIGC]
- IIGC has released a paper outlining the approaches investors can take on analyzing their value chain emissions. The report is focused primarily on publicly listed corporate instruments.
Nature-based Solutions
Thai regulators plan for approval of "green investment trusts' [Bloomberg]
- The Thai SEC is finalizing rules for natural capital focused "green investment trusts'' that will allow asset managers to create dedicated funds for forestry, tree planting and carbon credit projects. The trusts will initially be limited to investments in carbon credit generation projects and will be expanded to other types of natural capital investment over time. The new regulations are congruent with Thailand's carbon market, which launched in September, and seek to help avoid overcounting and accuracy issues that have emerged within the country's carbon projects.
- Amundi has urged investors to adopt the planetary boundaries as a framework for sustainable investment in nature and biodiversity. First created in 2009, the evolving framework has been used to estimate the level of overuse of the earth's resources and the impact of pollution on natural ecosystems. Amundi represents the major asset manager to adopt this framework, which has been endorsed by the Stockholm Resilience Center, among others.
The Global Reporting Initiative has updated its biodiversity standard [IPE]
- The Global Reporting Initiative (GRI) has released an updated and expanded biodiversity standard called the GRI 101: Biodiversity 2024. The standard is designed to set a global benchmark for biodiversity reporting, and will be complementary to the IASB's sustainability rulebook. The new standard aims to provide improved guidance for supply chain transparency, location specific reporting, direct drivers of biodiversity loss, and impacts on society.
Perspectives in Ecology study investigates efficient methods of native timber production [Eurasiareview]
- A study conducted by the FAPESP research program at the University of Sao Paulo examines the conditions needed to make restoration financially viable in the Brazilian Atlantic forest. The study finds that the forest restoration value chain needs to be specifically focused on species specific criteria for tree growth with a focus on native species, and cannot be generalized across species and areas.
CEPR finds natural capital not being considered in economic modeling for policy [CEPR]
- A recent workshop organized by the DG Economic and Financial Affairs, the Joint Research Centre of the European Commission, and the Output Gap Working Group of the EU’s Economic Policy committee, has examined the current state of natural capital estimation in economic modeling, and found that natural capital stocks and flows are not adequately accounted for when modeling the economy. The workshop paper calls for incorporating environmental feedback loops into economic modeling to better account for damage to natural capital.
Land Banking Group releases consultation paper on nature equity [The Land Banking Group]
- The Land Banking group has released a consultation paper on constructing nature equity contracts to find nature protection, restoration and improvement, which is now open for comment. The groups nature equity construct links nature preservation to payment, with land stewards receiving outcome based rewards and investors receiving credit for nature stewardship, which TLG contends represents exposure to safe assets.
Research project on protecting seaweed stocks launches [Fish Farmer Magazine]
- The UK Global Centre on Biodiversity for Climate (GCBC) has launched the Global Seaweed SUPERSTAR project, which aims to produce a “seaweed breakthrough” by 2026 that will protect wild stocks and support the livelihood of more than 6 million seaweed farmers worldwide. The project will work to improve seaweed cultivation’s resilience to climate change and research threats to seaweed biodiversity.
Climate Finance ≥ $100M
Commitments and deals
Commitments
Brazil announces $60 billion investment in local industries and decarbonization [Foreign Policy]
- The Lula Administration has released a new industrial policy proposal aimed at providing credit and funding to some of Brazil's largest and most troubled industries, with the goal of re-industrializing the country while decarbonizing the economy. The new policy would use a mix of tax credits and direct investment to incentivize the production of electric cars, reduction of industrial carbon emissions, and construction of new infrastructure.
- A consortium of large U.S. countries is prepared to invest in Vietnamese clean energy infrastructure according to U.S. officials. The unlisted companies are waiting to see what framework the Vietnamese government will adopt to govern clean energy investment and infrastructure in the country before making any definite commitments.
- British International Investment and the Asian Development Bank announced a partnership to finance $100 million of green trade transactions through ADB's Trade and Supply Chain Finance Program. The financing is intended to help derisk green energy infrastructure and trade in the region and strengthen supply chains.
Deals
Adnoc Allocates $2.3 Billion to Decarbonization [Marketwatch]
- Adnoc has announced a substantial investment in decarbonization as part of its 2045 net zero goal and 2030 net zero methane aims. The company hopes to capture 10 million tons of carbon per month by 2030, while continuing to expand its oil production.
GM plans to invest $1.4 billion in Brazilian Electric Car Production [Bloomberg]
- General Motors has announced a 5 year investment of 7 billion reais ($1.4 billion) into Brazilian battery electric car production operations. These investments are the first to comply with the government's new guidelines for foreign car manufacturers.
Innovation Endeavors closes $630 Million Fund [Techcrunch]
- Innovation Endeavors has closed its 5th fund with $630 million in capital commitments. The Fund is focused on energy, climate, infrastructure and materials, as well as life sciences, as part of a holistic strategy for building out core technologies and enabling tools for addressing the climate crisis.
Italian Solar Plant Receives $610 Million in Investment Led by Unicredit [Environmental Finance]
- 3sun, a photovoltaic cell and modules production gigafactory and subsidiary of Enel Green Power, has received $610 million as part of a funding round led by Unicredit. The gigafactory aims to produce 3GW of panels by the end of 2024. The European Investment bank and BPER Banca also contributed to the investment round.
Blackrock invests $500 million in recurrent energy [ESG Today]
- Black Rock has announced a $500 million equity investment commitment in Canadian Solar subsidiary Recurrent Energy, representing a 20% stake in the total equity of the company. The new investment is expected to provide capital for growing and improving the project development pipeline and enabling the company to transition from pure developer to a developer and long term owner.
ArcTern Ventures Announces $335 Million Fund focused on decarbonization [Businesswire]
- ArcTern has closed its fund III, with investments from TD bank, Allianz, Credit Suisse Asset Management and others. The fund is focused on early growth stage companies in North America and Europe focused on maximizing ghg emissions abatement and avoidance.
- The Biden administration has announced a $254 million investment in manufacturing decarbonization. $171 million in investments spread across 49 projects in 21 states was announced, along with a $83 million fund for hard-to-decarbonize emissions.
Clime Capital Closes Second Southeast Asian Clean Energy Fund with $127 Million [Technode]
- Singapore based Climate Capital has closed a $127 million climate fund focused on providing early stage and high risk capital to energy generation, energy efficiency, grid development, and electric mobility companies throughout the South East Asia region.
Propellor Closes $117 Million fund for ocean based projects [Axios]
- Propeller, which focuses on the intersection of the ocean and climate, has closed its inaugural fund at $117 million, with investments in 14 companies, much of it focused on Ocean based carbon capture, as well as sustainable fishing and electric water transport.
World Bank Issues $100 million plastic waste reduction bond [IFRE]
- The World Bank has raised $100 million from a plastic pollution bond managed by Citigroup. The coupon payments will be linked to plastic credits generated at projects in Ghana and Indonesia, and issued by Verra. The coupon will be used to expand recycling sites and install improved recycling equipment.
NOAA to invest $85 Million in climate data tools [NOAA]
- The Department of Commerce and NOAA have announced a combined $85 million investment in their industry Proving Grounds program, funded through the inflation reduction act. The funding will focus on developing climate data products that can help to predict hail events and other natural disasters, and modernize NOAA's data information network.
Nature-based Solutions ≥ $1M
Commitments and deals
Deals
Infinite Roots Secures $58 Million for mycelium based protein [Agfundernews]
- Infinite Roots, a Hamburg based mycelium protein startup, has raised $58 million, bringing total investment pre-production to $131 million, at a time when investment in alt protein production has generally slowed.
Public Private Fund Provides $50 million for Namibian landscape restoration over 50 year [Xinhua]
- The Legacy Landscape fund has agreed on a 50 year recurring grant to support community conservation and ecological corridor development in Namibia, in partnership with the World Wildlife fund and the Namibian government.
- The Brazilian National Bank for Economic and Social Development has agreed on a $37.8 million investment in a Rio based carbon project developer.
Captura raises $21.5 million [Global Newswire]
- Ocean based carbon capture startup Captura raised $21.5 million in funding to commercialize its Direct Ocean Capture systems, with investments from Maersk Growth, Eni NExt, and EDP ventures, and reinvestment from existing backers. The company aims to install a plant in Norway by fall 2024 with a capture capacity of 1000 tons of CO2 annually.
Canada invests $9.52 million in indigenous led climate solutions [Cision]
- The Canadian Federal Government has invested CAD 12.8 million ($9.52 million) in indigenous led restoration efforts throughout the country. Initiatives include developing carbon accounting resources with the Metis nation of Ontario, and developing indigenous led restoration and natural resource management solutions with Mi'kmaq and Mikisew Cree led organizations.
Carbon Credits platform CEEZER raises $11.43 [Carbon Herald]
- CEEZER has raised EU10.3M ($11.43 million) in series A funding from HV Capital, Norrsken VC, Picus Capital, and Carbon removal partners. The Carbon Credit platform aims to use the funding to expand in the U.S
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