Your Newsletter at a Glance
Note from the author: The beginning of April has seen a strong uptick in investment into sustainable forestry and innovation in alternative proteins. And, for the first time, we have data that shows renewable energy in the U.S. surpassing coal, driven by its superior economics.
In the nature-based solutions (NbS) world, there have been some new fund updates; S2G Ventures launched a $300m fund for capital intensive agri, ocean, and energy start-ups, Agri3 Fund received $13m for sustainable agriculture, and Carbonwave announced initial close of $5M Series A funding led by Mirova's Sustainable Ocean Fund. Luckily, we’ve profiled Mirova and Agri3 for you on our NbS platform — give them a read!
Deal Count: This week covers almost $316b in deals and commitments to climate finance around the world. Nature-based solutions saw ~$2.3b in deal flow, a slight increase from the end of March. Check it out in the 62 stories below.
Climate Finance
Deals above $100 million
Market Watch
Japan mulls updating hydrogen plan with $113 billion in funds [Bloomberg]
- Japan will consider setting aside 15 trillion yen ($113 billion) in public and private-sector funds over the next 15 years to create hydrogen and ammonia supply chain to help decarbonize its energy sector.
China's oil giants to invest over $14bn in renewables by 2025 [Nikkei Asia]
- China's three state-owned energy majors plan to invest a combined 100 billion yuan ($14.5 billion) or more in renewable energy through 2025, diversifying their business as Beijing pushes to achieve net-zero carbon dioxide emissions by 2060.
- The USDA is accepting applications for $1 billion in grants to help agricultural producers and rural small businesses invest in renewable energy systems and make energy-efficiency improvements. USDA is making the $1 billion in grants available under the Rural Energy for America Program (REAP), with funding from President Biden’s landmark Inflation Reduction Act, the nation’s largest-ever investment in combating the climate crisis.
Research
UK updates green finance strategy and aims to pilot new nature markets [Carbon Pulse]
- The government published its updated strategies that outlines how it intends to lead on green finance to cement the UK’s place “at the forefront of this growing global market, and … mobilize the investment needed to meet our climate and nature objectives”.
U.S. renewable electricity surpassed coal in 2022 [AP News]
- Growth in wind and solar significantly drove the increase in renewable energy and contributed 14% of the electricity produced domestically in 2022. Hydropower contributed 6%, and biomass and geothermal sources generated less than 1%.
Nature-based Solutions
Deals above $1 million
Market Watch
AFIP to raise US$500 million via Singapore VCC to support sustainable forestry in Africa [The Asset]
- Global financial services provider Apex Group has been mandated by New Forests, a global investment manager of nature-based real assets and natural capital strategies, to deliver fund services to its African Forestry Impact Platform (AFIP). New Forests’ AFIP will continue to raise long-term institutional capital to support the sustainability and development of Africa’s growing forestry sector, with the aim of raising US$500 million for the platform in the next two to three years.
VC firm Bidra scoops up $200m to back sustainable ag and energy startups [AgFunder Network]
- Bidra invests in climate-focused agrifoodtech startups; the new investment will expand its scope to include energy, water and mining in addition to agriculture.
World Bank to infuse $160m into Ecuador’s ‘blue economy’ [Undercurrent News]
- The infusion will target small- and medium-sized businesses, particularly those owned by women.
Research
3 ways to include rural communities in emerging climate solutions [EDF]
- EFD writes that as we continue to transition to cleaner forms of energy and as recent Infrastructure Investment and Jobs Act and Inflation Reduction Act investments begin to roll out, there will be a need for the development and deployment of energy technologies at a scale we haven’t seen before now. The paper argues that to ensure that all communities have the resources and support they need to mitigate the impacts of climate change, it is important for governments and other organizations to include rural communities in their work.
- The report argues that sustainability-linked sovereign debt-related (SLSD) bond issuances can grow 100-fold this decade to help address the crises trio of debt, climate, and nature with linkages to nature markets seen as one of several steps that could help scale the instrument.
Climate Finance
Deals above $100 million
Individual Deals & Market Watch
Canada’s Inflation Reduction Act response: An $80bn clean energy plan [Energy Monitor]
- Canada has announced $60bn in clean energy tax credits and $20bn in sustainable infrastructure investments as part of its 2023 budget. The green investments are a response to the US Inflation Reduction Act (IRA), which committed nearly $370bn to clean energy. The EU recently issued its own response.
UK turns to big oil in £20 Billion ($24.6b) carbon capture push [Bloomberg Green]
- The UK selected projects from developers including BP Plc and Equinor ASA to enter into negotiations for the country’s first large-scale efforts to capture and store carbon emissions. In total, eight projects are set to receive government support to trap carbon from industrial clusters in the north of England. The technology could be a key tool to help the UK reach its goal of net-zero emissions by 2050.
California to invest US$9.3 billion in renewables shift [PV Tech]
- California will invest US$9.3 billion in 46 transmission projects to accommodate the state’s renewable energy shift, enabling more than 17GW of solar generation to be added to the grid.
Africa wins $7bn in climate commitments [FDi Intelligence]
- The US government has announced more than $7bn worth of commitments to help Africa adapt to climate change. The White House announced pledges from 27 private sector and philanthropic organizations to support the continent’s farmers, clean energy developments and other sustainability projects.
Turkish treasury raises $2.5 bln in green bond issue [Trend News Agency]
- The Treasury and Finance Ministry has said it raised $2.5 billion in a green bond issuance maturing in 2030, Trend reports citing Hurriyet Daily News.
Spain to Invest $2.3 Billion in S. African Energy Transition [Bloomberg]
- Spain is providing 2.1 billion euros ($2.3 billion) to help fund South Africa’s energy transition and water needs, even as some of the world’s richest nations struggle to push forward on a ground-breaking climate-finance initiative with the continent’s most-industrialized country.
New Xtrackers climate action ETF launches with $2 Billion [Nasdaq]
- DWS announced the listing of the Xtrackers MSCI USA Climate Action Equity ETF, which seeks exposure to companies leading the way towards a low-carbon economy. The fund received an investment of approximately $2 billion on the first day of trading, making it the largest ETF launch of all time in the U.S.
BP planning for $1.5 billion green investment at Cherry Point [The Northern Light]
- BP’s Cherry Point Refinery could be subject to a $1.5 billion investment that would make the Whatcom County facility a future hub for green energy.
NYS allocates $1.3billion to sustainable investment program [Responsible Investor]
- The NYS Common Retirement Fund has committed a further $1.3 billion to its sustainable investments and climate solutions program. The allocation takes the public pension fund to less that $2 billion short of its 2019 goal to invest $20 billion in climate solutions within a decade.
Cummins to invest over $1 bln to upgrade U.S. facilities to new clean energy tech [Reuters]
- Cummins Inc said it would invest more than $1 billion across its U.S. engine manufacturing network to upgrade some facilities to support new clean energy technologies.
USDA opens USD-1bn funding round for renewables in agriculture [Renewables Now]
- The US Department of Agriculture (USDA) will extend USD $1 billion (EUR 922.7m) in grant funding to support the installation of renewable energy capacity across the agricultural sector. The package is aimed at helping agricultural producers such as farmers and ranchers and rural small businesses invest in renewable energy systems and energy efficiency initiatives.
Brookfield investing $1 billion in Avaada [Economic Times]
- Canadian investor Brookfield has agreed to invest $1 billion in Avaada Ventures in what will be its largest clean energy bet in the country. A formal agreement was signed between Brookfield and serial entrepreneur Vineet Mittal, founder of the Avaada group, and the first tranche of $400 million has been disbursed.
REC Limited raises $750m through issuance of green bonds [The Telegraph]
- REC, the state-owned power project finance firm, said it raised $750m through the issuance of green bonds.
- The U.S. International Development Finance Corporation (DFC) approved 17 new transactions totaling more than $655 million of investment. The transactions will support U.S. foreign policy and development priorities across the globe, including enabling sustainable infrastructure and energy security, advancing food security and agricultural innovation, supporting small businesses, and improving healthcare.
REC launches book building for $500-m green bonds [Economic Times]
- State-owned REC launched a book-building process to raise $500 million through green bonds. The fundraising will be for a long five-year green US dollar bond benchmark under 144A/Reg S, with an initial price indication of T+250bps.
EC clears EUR-450m ($489m) green hydrogen support scheme in Italy [Renewables Now]
- The European Commission (EC) announced its approval of a EUR-450-million (USD $489m) scheme by the Italian government to support investments in the integrated production of green hydrogen and renewable power in brownfield industrial areas.
Biden offers $450M for clean energy projects at coal mines [Associated Press]
- President Joe Biden’s administration is making $450 million available for solar farms and other clean energy projects at the site of current or former coal mines, part of his efforts to combat climate change. As many as five projects nationwide will be funded through the 2021 infrastructure law, with at least two projects set aside for solar farms.
Nordex completes €333m ($364m) green bond placement [Renews.Biz]
- Nordex has successfully placed new, unsubordinated, unsecured green convertible bonds due 14 April 2030 in an aggregate principal amount of approximately €333m with a denomination of €100,000 each.
World Bank launches AUD 340M ($225.2m) bond, highlights biodiversity & sustainable dev [The Mirage]
- The World Bank launched a 10-year AUD 340 million ($225.2m) Australian Dollar Bond due 21 April 2033 while engaging with investors on the World Bank’s strategy, projects, and programs that support developing countries in the sustainable management of biodiversity and ecosystem services and integrating nature in development.
AGinvest launches cad300m ($222.4m) ag investment fund [Global AgInvesting]
- This grassroots strategy places an emphasis on forming strong relationships with Canadian farming families, providing them with sensible succession planning solutions, value-add strategies, and active agronomy management with an eye toward long-term sustainability of the land. Over the past five years, AGinvest has had a successful track record of launching four funds – recently releasing a five-year CAGR of 18.03 percent on their first fund and a three-year CAGR of 17.74 percent on their second fund, outpacing the Canadian Index.
Greece launching EUR-200m ($216.8m) solar-storage subsidy scheme [Renewables Now]
- The Greek government is opening for submissions in April a new subsidy program targeting the installation of small solar photovoltaic (PV) systems and batteries in the residential and agricultural segments.
Locus Fermentation Solutions announces $117 million financing [Yahoo Finance]
- Locus Fermentation Solutions, a green tech company that produces biological alternatives to chemicals that advance decarbonization goals, has secured $117 million in IP-insurance backed debt financing arranged by Jefferies —bringing its total raise to over $250 million.
Research, Frameworks, & Case Studies
China may meet solar, wind goals five years earlier [ChinaDaily]
- China may reach its 2030 target for wind and solar energy development five years earlier than planned. Prefecture-level regions have planned to increase installed capacity for wind and solar energy by at least 800 million kilowatts during the 14th Five-Year Plan period.
New circular carbon market report highlights $5.77B raised by innovators [Carbon Herald]
- The analysis titled Circular Carbon Network Market Report tracks investments’ interest in the sector and represents one of the most comprehensive data on early-stage innovators in several circular carbon sectors. The data represents around 60% of all startups working in the space currently.
SunZia wind transmission projects to contribute USD 20.5bn to economy [Renewables Now]
- Pattern Energy Group LP quoted an independent study saying that the multi-gigawatt-scale SunZia Transmission and Wind projects in the southwestern US will generate USD $20.5 billion (EUR 18.7bn) in total economic benefit.
Nature-based Solutions
Deals above $1 million
Individual Deals & Market Watch
- The funds, disbursed annually based on offshore oil and gas production revenue, support coastal conservation and restoration projects, hurricane protection programs, onshore infrastructure projects, and activities to implement marine and coastal resilience management plans.
- S2G Ventures has officially announced the launch of its $300 million Special Opportunities fund. The fund will provide flexible financing for social and environmental impact startups working in capital-intensive, asset-oriented industries including agriculture, energy and oceans.
- To help reduce the risk of catastrophic wildfire, promote fire adapted communities and improve forest health, Tahoe National Forest is providing the National Forest Foundation $117 million to implement forest management work in the North Yuba Landscape.
Nearly $105 million in grants for Fish Passage Project across the US [NBC Right Now]
- The National Oceanic & Atmospheric Association (NOAA) provided tribes and under-served communities with nearly $105 in grants for Fish Passage Projects. The goal of the project is to help better the habitat of fish species and population sizes across the country, as well as endangered Salmon in the West Coast.
- Unibio has announced an investment of $70million from the Saudi Industrial Investment Group (SIIG). Unibio has developed technology to convert natural gas (methane) into organic, high quality sustainable protein for the global animal feed market on an industrial scale.
German silk biopolymers producer AMSilk brings Series C round to €54 million ($58.5m) [Tech EU]
- The Bavarian company aims to scale up and expand commercial operations of its bio-fabricated silk protein materials.
£44m ($54.6m) for agriculture in government’s water plan [Farmers Weekly]
- Farmers will be able to access additional funding from Defra for building on-farm reservoirs, investing in irrigation equipment, and improving slurry storage.
- The International Bank for Reconstruction and Development will provide €46.2 million to Georgia to support the development of sustainable agriculture, irrigation, and land markets.
Farmers’ fintech Agreena raises €46M ($50.4m) to scale the regenerative revolution [Business Wire]
- Climate and fintech company Agreena, whose soil carbon platform is one of the largest globally, announced its Series B raise of €46M. Led by Germany’s leading multi-stage investor HV Capital, the round has an exciting composition of new investors including impact fund AENU and fintech-focused Anthemis.
£40m ($43.8m) funding boost for Duns Park project [Scottish Borders Council]
- Funding of over £40,000 has been awarded to support the development of a project in Duns Park which aims to use nature-based solutions to address flooding and create new wildlife habitats.
Victory Farms Poised For Further Growth After $35m Series B Drive [Africa.com]
- East Africa’s fastest-growing aquaculture platform, Victory Farms, has successfully completed its $35 million Series B round to fund the expansion of its operations in Kenya, Rwanda, and potential entry into Ethiopia, Uganda and Tanzania. Victory Farms provides a climate-smart, profitable, and scalable solution to Africa’s nutritional security challenges.
USDA invests $34M to strengthen wood products economy [Biomass Magazine]
- As part of its goal of investing in rural America, the Biden-Harris Administration announced that $33.7 million from President Biden’s Bipartisan Infrastructure Law will fund projects to strengthen the wood products economy and promote sustainable forest management.
Atarraya cultivating $25M for urban shrimp farming [Axios]
- An Indianapolis shrimp-farming startup is raising a $25 million Series B to transform shrimp into a sustainable source of protein.
Natural England unveils £18m ($22.4) endangered species protection funding scheme [Business Green]
- Conservation funding geared towards research and investment in wildlife habitat restoration and protection across England.
Tapestry Invests $18m in Alternative Leather Company Gen Phoenix [Business of Fashion]
- The start-up, known for a material that combines recycled leather with polyester fibres, raised $18 million in a new funding round.
UK Infrastructure Bank announces first natural capital transaction of ~$15m [Infrastructure Bank]
- UK Infrastructure Bank has announced it intends to commit £12 million ($15m) to support an innovative nature restoration project in the Scottish Highlands and Islands with the aim of stimulating natural capital markets, and helping to tackle climate change, boost biodiversity, and deliver benefits to the local community.
Cargill, Nestlé commit to $15 million investment in conservation practices [Supermarket Perimeter]
- Two food giants — Nestlé and Cargill — are teaming up with the National Fish and Wildlife Foundation (NFWF) in a conservation effort. Nestlé and Cargill are investing a combined $15 million, matching federal funding, so that the initiative will generate $30 million in grant funding for farmers.
GEF adds $13 million to AGRI3 fund for sustainable agriculture [Afrik21]
- The Global Environment Facility (GEF) has confirmed a $13.5 million equity investment in the AGRI3 Fund. This funding mechanism supports the development of sustainable agriculture and forest conservation.
High hopes after £10.5m ($13m) sale of Highland estate to rewilding project [The National]
- The £10.5 million sale of a 3400-acre Scottish estate to a rewilding project has gone ahead, boosting hopes of a breakthrough in scaling up nature recovery.
Foresight Sustainable buys new Scottish properties for GBP9.9 million ($12.3m) [Market Screener]
- Foresight Sustainable Forestry is a London-based investment company focused on standing forests and afforestation assets. The firm has bought Newnoth Farm, an asset directly adjacent to Newnoth Forest, an existing mature forestry property within its portfolio.
$11M secured for Upper Des Plaines River ecosystem restoration [Lake County Journal]
- The U.S. Army Corps of Engineers’ Chicago District received funding to restore native habitats and improve ecosystem services in the Upper Des Plaines River Watershed.
Seaweed-for-feed company raises £6 million ($7.5m) [Fish Site]
- Ocean Harvest Technology, which produces animal feed additives from seaweed blends, has listed on the Alternative Investment Market (AIM), raising £6 million in the process.
Aqua Cultured Foods raises $5.5 million [Fish Site]
- Food tech startup Aqua Cultured Foods announced it has raised $5.5 million in seed funding to help bring its seafood alternatives to market.
- Funding expands production capacity into high-value products that replace fossil fuel and animal-based products in the cosmetic emulsifiers, agriculture, textiles, and plastics industries.
- The Yurok Tribe recently received a grant from the California Department of Fish and Wildlife for an urgently needed, large-scale river restoration project on the Trinity River. “These funds will help us transform a severely damaged section of the Trinity into a diverse, dynamic and complex habitat for salmon and steelhead,” said Frankie Myers, the Yurok Tribe’s Vice Chairman and President of the Yurok Tribe Construction Corporation.
Animal-free protein producer Zero Cow Factory raises $4 million [Business Outreach]
- Zero Cow Factory, a biotechnology business that claims to be manufacturing India’s first animal-free protein and dairy products using bioengineering microorganisms and precision fermentation.
- Swiss startup Impossible Materials has raised SFr3.4 million ($3.8 million) in seed funding to help commercialize its first product, a cellulose-based alternative to titanium dioxide (TiO2), a white pigment recently banned in the EU for use in foods.
- SEPURA Home Ltd., creator of the first sustainable food waste separation device in the world, announces the completion of a $3.7M seed round led by premium kitchen water place brand, BLANCO.
- BSF Enterprise, a biotech company focused on lab-grown meat, announced it has raised £2.9m ($3.6m) via an oversubscribed placing at 17p/share.
‘Shicken Curry’ maker bags £2m ($2.5m) from vegan fund to fuel costco roll-out [Grocery Gazette]
- Plant Alternative, which produces the Shicken range of Indian-ready meals, has received a further £2 million in investment from Veg Capital. This latest funding round will see the plant-based company scale up production and expand its reach to more Costco stores across the UK and internationally.
Danone drops $2 million into Wilk’s cultured breast milk [Green Queen]
- French dairy conglomerate Danone has agreed to a strategic $2 million investment deal with Israeli cell-based breast milk startup Wilk. The dairy giant says it plans to collaborate with Wilk in developing cultured breast milk components for infant formula.
- The total awarded funds of $1.6 million support 4P Foods’ Regional Food Ecosystem for the Mid-Atlantic (RFEMA) project to build essential infrastructure to scale regional food systems and improve food access.
SDSU receives $1.2M USDA grant for climate-smart agriculture project [Argus Leader]
- The project is focused on overcoming barriers in implementing climate-smart ag practices, including no-till farming, planting cover crops, and utilizing smart fertilizer technologies.
Research, Frameworks, & Case Studies
- The report says that farmers across the country are experiencing climate impacts as a crisis. From losing seed crops as wildfires rage for weeks, to losing entire crops as a result of erratic freezes, to losing farms as drought dries up available water, farmers’ risks are rising. As weather becomes more volatile because of climate change, the need to fund technical assistance, conservation projects, and research is increasingly urgent. The U.S. public, across party lines, is concerned about the impacts of climate change on agriculture and food production.
Our economic system is completely dependent on nature [Financial Times]
- The co-chair of the Taskforce on Nature-related Financial Disclosures says natural systems and long-term human prosperity go hand in hand.
Landmark U.N. deals highlight need to see ties between climate and biodiversity [Japan Times]
- If you look behind the headlines on recent climate and biodiversity progress, there is growing recognition that how these efforts interact is critical. Recent landmark agreements have broken long-standing global stalemates on climate change and biological diversity. The U.N. climate summit in Egypt last November (COP27) struck a historic deal to provide “loss and damage” funding for vulnerable countries hit hard by climate disasters.
Underutilized Sustainable Agriculture: Raising Animals in Rice Paddies [Mirage]
- This report claims that a traditional Southeast Asian rice farming technique of raising fish and other aquatic livestock in paddies has potential to meet global food demands, improve the health of both people and the environment and earn producers an additional $150 billion a year worldwide.
Report Available for Rangeland Carbon Markets [Morning AgClips]
- Morning AgClips has developed Rangeland Carbon Markets to provide an overview of carbon markets specifically for natural resources professionals, landowners, agricultural producers, and others involved in making land management decisions by providing information on the background, history, processes and function of carbon markets.
What’s new in climate investment?
More News
.png)
