Your Newsletter at a Glance
Commentary by C4C
With the close of Climate Week NYC, deal flow slows but government commitments stay high, with a recommitment from Brazil to strong decarbonization policy, cutting carbon emissions by 48% within two years. The Bahamas announce an intent to raise $500M for climate resiliency and other climate-impacted areas for the Caribbean nation.
Some additional significant government moves:
- Japan and Paraguay move towards carbon credits, with the former announcing a launch date on their stock exchange next month.
- Canada commits to $3bn for Romania’s energy sector.
- US announces another three quarter billion dollars for climate and nature.
So much reading to catch up on - multiple playbooks, frameworks, and research pieces debut to help transition investors such as yourself:
- The Climate Policy Initiative (CPI) tells us about the climate finance landscape for land use in Brazil.
- The Biodiversity Credit Alliance reminds us Indigenous- and locally-led approaches in biodiversity credit markets are better for everyone, even returns.
- Both Climate Policy Institute and UN Global Compact and Climate Bonds Initiative tackle corporate financing for climate in their own respective ways.
- The UN Climate Change High-Level Champions launches two papers giving us recommendations for just climate transitions in Emerging Markets and Developing Economies (EMDEs).
- The Forest Investor Club sheds light on the current landscape of investing in nature-based solutions in their first annual report.
In deal flow and commitment news, this week sees almost $1.4bn in decarbonization commitments across fashion, confectionery, and broadband. More funds and green bonds announcements this week, totaling almost $3bn and $2bn, respectively. Corals can celebrate with $7.7mn in public and private funds for Caribbean and Pacific reefs.
C4C News and Events
Learn more about what we're doing
THIS WEEK! Our Virtual NbS Investment Opportunity Roadshow.
On Thursday, 28 September, we will host the first of two events in our Brazil NbS Investment Series. The educational roadshow for qualified investment principals will showcase leading NbS-focused funds, project developers, and enterprises, providing investors a preview of the nature-positive pipeline to achieve net zero and biodiversity targets in the Brazil region.
Attendees will see curated opportunities spanning agroforestry, the forest bioeconomy, regenerative agriculture, ecosystem restoration, restoration of degraded pastureland, more sustainable livestock management, nature tech, and more.
Don’t forget to REGISTER by Tuesday afternoon to provide time to process your application to attend.
Research and Knowledge Sharing
**revamped section!**
Climate
- The UN Climate Change High-Level Champions launches two papers that specify recommendations to break financing barriers for just climate transition and restore nature in Emerging Markets and Developing Economies (EMDEs). Recommendations are designed to help to secure the $1 trillion in annual finance that developing countries need by 2030 to take effective climate action and restore nature.
- A new report from the UN Global Compact and Climate Bonds Initiative, titled "The role of the Chief Financial Officer in driving low-carbon transition", underlines the key role Chief Financial Officers (CFOs) play in managing the risks and opportunities inherent in taking action or lagging behind in the low-carbon transition.
Brazil strengthens climate goals, targets 48% lower emissions by 2025 [Reuters]
- Brazil aims to cut its emissions by 48% by 2025, the country's environment minister Marina Silva told the United Nations' Climate Ambition Summit in New York, as she issued a revised set of stronger climate goals.
The corporate climate finance playbook [CPI]
- CPI, in partnership with Salesforce, develop a corporate climate finance playbook to help corporate decision makers accelerate climate finance strategies
Japan announces the opening date of their carbon credit market [Japan Exchange Group]
- Tokyo Stock Exchange, Inc. will open its carbon credit market on October 11, 2023, with 188 registered participants. Registration is still open and new applications can be accepted at any time.
Paraguayan Senate passes carbon credit regulation bill with amendments [Carbon Pulse]
- Legislation outlining regulation of the voluntary carbon credit market passes Paraguay's Senate this week by a significant margin following a number of amendments, and now goes to the country's Chamber of Deputies.
Nature-based Solutions
Intermittent shading can moderate coral bleaching on shallow reefs [Frontiers in Marine Science]
- Shading-based management interventions for coral bleaching, such as whole-of-reef marine fogging, have been proposed as a conservation tool for periods when coral undergoes excessive thermal stress. Research results suggest that intermittently shading corals for 4 hours can moderate light stress and slow bleaching in some corals and could improve the efficiency of active solar radiation management in marine ecosystems.
Building food and agriculture businesses for a green future [Mckinsey and Co.]
- Significant shifts in global food systems are necessary to meet the world’s demand for food, and scaling is key. This study surveys leading thinkers who helped identify 11 food and agriculture business concepts that are emerging to support the future of farming and the transition to more sustainable food systems.
Landscape of climate finance for land use in Brazil [Climate Policy Institute]
- To understand climate finance for land use in Brazil, researchers from the Climate Policy Initiative and Pontifical Catholic University of Rio de Janeiro conducted a tracking exercise to quantify the financial flows directed towards agriculture and forest in alignment with climate goals, resulting in 11 key summarized findings. Check out the interactive Sankey diagram for quick visual exploration of the results.
Forest Investor Club 2023 Annual Report [World Business Council for Sustainable Development (WBCSD)]
- The FIC’s inaugural Annual Report shares insights on current barriers to investing in nature-based solutions, the landscape of initiatives working on investment solutions, FIC’s progress to date, and case studies that showcase examples of innovative investment strategies already being undertaken by FIC members to address barriers to scaling investment in forests and nature.
- Reservas Votorantim, a subsidiary of Votorantim holding, announces the first project design of PES Carbonflor, a conservation-based carbon credits methodology, with a large pilot in the Atlantic Forest. This methodology, based on the Brazilian legislation for Payment for Environmental Services (PES) – Law 14.119/2021, which includes carbon stocks as eligible forms of compensation, is the first to generate carbon credit from forest conservation efforts in Brazil under the new law.
- The Biodiversity Credit Alliance (BCA), backed by Swedish bilateral SIDA and UNDP and now with hundreds of private sector and NGO members, releases its first Discussion paper on the business case for investors to support Indigenous- and locally-led approaches in biodiversity credit markets for reduced risk and better outcomes for investors and communities themselves.
Climate Finance
Deals and commitments above $100mn
Individual Deals & Market Watch
Citizens pledges to work with commercial clients on climate plans ($50bn) [Yahoo]
- Rhode Island headquartered Citizens Financial Group commits to reaching carbon neutrality by 2035, while also pledging to engage with its high-emitting clients on climate-related topics in the coming years. The bank is targeting $50 billion in what it characterizes as sustainable finance - or loans and investments to support the environment and community development - by 2030.
Northland nears close on 1-GW Hai Long project off Taiwan ($3.68bn) [Renewables Now]
- Canadian renewables developer Northland Power Inc expects that financial close on the 1,044-MW Hai Long offshore wind project in Taiwan will be reached shortly thanks to the signing of a TWD-118-billion (USD 3.68bn/EUR 3.45bn) debt financing deal.
- Canada’s decision to support Romanian energy security and climate action through $3 billion in available export financing to Nuclearelectrica S.A. (SNN), the national operator of the Cernavoda Nuclear Generating Station. This investment will support further Canadian jobs and business activity in Romania’s nuclear sector.
Bill Clinton, Mobileye co-founder to raise $1bn climate fund [Axios]
- Israeli tech entrepreneur Ziv Aviram and former U.S. President Bill Clinton partner on a new climate-tech fund with a target size of $1 billion. Aviram, who co-founded Mobileye, will co-lead the fund, called EcoBridge, along with fellow co-founder investors Itai Lemberger (Bow Wave Capital Management) and Robert Citrone (Discovery Capital Management).
Masdar plans to borrow up to $1bn with second green bond [Bloomberg]
- Masdar, a major operator of solar power plants in the United Arab Emirates, is planning to raise as much as $1 billion through its second offering of green bonds, after borrowing $750 million earlier this year.
HSBC to make $1bn in funding available to climate-tech startups [Reuters]
- SBC Holdings plans to allocate $1 billion in financing to support emerging climate-tech companies around the world, in a push to help reduce carbon emissions. The financing is expected to support start-ups in EV charging, battery storage, sustainable food and agriculture and carbon removal technologies, HSBC said. The strategy is kicked off with a $100M commitment to Breakthrough Energy Catalyst.
Mars confirms a $1bn funding to deliver 50% emissions cuts by 2030 [Confectionary Production]
- Mars Inc. pledges an additional total of $1 billion towards achieving its ‘net zero roadmap’, aiming to make 50% cuts in greenhouse gas emissions across its global value chains by 2030. Pretty detailed article for trade press.
South Korea's LG Energy Solution raises $1bn in green bonds [Reuters]
- South Korea's LG Energy Solution confirms it has raised $1 billion in its first global green bond issuance comprised of a three-year bond of $400 million and a five-year bond of $600 million.
India's Ola Electric mulls $700mn IPO filing by next month end [Dealstreet Asia]
- Another green decacorn coming? India’s e-scooter leader Ola Electric plans to file regulatory papers for its up to $700 million IPO before the end of October. Investors in Ola, which was valued at $5.4bn in the most recent round, include Temasek,Softbank, Goldman Sachs, and Bank of America.
- The government of Western Australia on Tuesday announces deals for the purchase of over AUD 1 billion (USD 643.1m/EUR 598.3m) worth of batteries for 700 MW/2,800 MWh of energy storage projects aimed at storing locally produced green power.
Lowercarbon raises $550mn [Axios]
- Lowercarbon Capital raises over $550 million for a pair of new venture funds focused on climate tech startups, per a letter to limited partners that appeared on the firm's website.
- Prime Minister Davis announces a new $500M fund raising initiative aimed at addressing climate change and its impacts on The Bahamas. Partnering with Resilience Capital Ventures, the funds will be directed towards climate-resilient infrastructure, coastal conservation, clean energy transition, and more.
- Ontario-based Hydro One Limited, an electricity transmission and distribution company, announces its wholly-owned subsidiary, Hydro One Inc., prices an offering of $425 million aggregate principal amount of Floating Rate Medium Term Notes, Series 56, due 2026. Hydro One Inc. intends to allocate an amount equal to the net proceeds from the sale of the Notes to finance and/or refinance, in whole or in part, new and/or existing eligible green projects.
- The U.S. Department of Energy (DOE) releases program guidance and opens applications for $400 million in formula funding to states and territories for adopting and implementing building energy codes that reduce utility bills, increase efficiency, lower greenhouse gas emissions that fuel the climate crisis, and make buildings more resilient to climate disasters.
- U.S. Department of Energy (DOE) announces up to $325 million for 15 projects across 17 states and one tribal nation to accelerate the development of long-duration energy storage (LDES) technologies.
France's TotalEnergies to invest $300mn to form JV with India’s Adani Green Energy [Dealstreet Asia]
- French oil major TotalEnergies will invest $300 million to form a joint venture with Adani Green Energy to build renewable capacity in India.
UK offers $300mn guarantee for Asia and Pacific climate fund [Reuters]
- The UK will provide guarantees of up to $300 million to a climate funding facility designed to help reduce greenhouse gas emissions and build infrastructure resilient to the impact of climate change in Asia and the Pacific.
US' Aii declares first grants to fund $250mn to decarbonisation plans [Fibre2Fashion]
- US-based Apparel Impact Institute (Aii), a nonprofit organization, announces its inaugural distribution of grants through its Climate Solutions Portfolio (CSP). The CSP aims to channel $250 million into proven decarbonisation initiatives.
NZGIF raises international capital to support solar energy ($170mn) [NZ Green Investment Finance]
- New Zealand Green Investment Finance (NZGIF) leads a $170 million capital raise, for a new green bond structure approved by the Climate Bonds Initiative and aimed at distributed solar and New Zealand. The vehicle attracted international investors First Sentier Investors and Natixis Investment, to launch its newly created NZGIF Solar Finance programme.
Italian fund gets $100mn for bet on energy transition [Bloomberg]
- Fondo Italiano per l'Efficienza Energetica SGR SpA, an Italian equity fund focused on energy efficiency, raises about $100 million for a new long-short fund that bets on the equity and debt of companies involved in the transition to a lower carbon economy.
Nature-based Solutions
Deals and commitments above $1mn
Individual Deals & Market Watch
- A UK state visit to France aiming to cement climate collaboration between the two countries results in two closed deals and multiple pledges for nature-based investments from retail companies, investment houses, and not-for-profits.
New €360mn ($384.2mn) climate fund launches despite venture funding downturn [Yahoo]
- Brussels-based Astanor Ventures announces it raised €360 million ($385 million) for a new fund. The firm already has investments in more than 40 startups dedicated to improving efficiency in the food and agricultural sectors. With the new fund, it will continue to invest in solutions for the food system.
- The Department of Commerce and NOAA announces steps to conserve and recover endangered North Atlantic right whales with $82 million in funding from the Inflation Reduction Act. This announcement comes during Climate Week and is part of the $2.6 billion framework to invest in coastal resilience that NOAA announced earlier this year.
Trailhead capital closes tech-enabled regenerative food and ag fund at $50mn [Global Ag Investing]
- Demonstrating strong investor confidence in regenerative agriculture and the success the firm has had to-date, Trailhead Capital announces the oversubscribed close of its inaugural fund, Trailhead Capital Regeneration Fund I, with total capital commitment of approximately $50 million.
- Governor Kathy Hochul announced that$13.8 million has been awarded to 33 projects across the state through the State’s Agricultural Nonpoint Source Abatement and Control Program. The funding supports agricultural water quality conservation projects, which will benefit 80 farms, enhance water quality in priority watersheds, and protect the environment.
- Mercado Livre is closing a new round of investments in regeneration and reforestation projects in the Atlantic Forest and the Brazilian Amazon. Funding of R$42 million will be disbursed for the restoration and conservation of more than 8,500 hectares of forest.
- Precision Irrigation Management startup Treetoscope completes its latest seed fundraising round, securing $7 million to aid with R&D, fuel overall growth and accelerate commercial agriculture expansion in North America and beyond.
Queensland govt issues AUS$10mn ($6.4mn) reef credit purchase guarantee [Carbon Pulse]
- The Queensland state government in Australia commits A$10 million ($6.4 mln) towards purchasing reef credits from two project developers if other buyers don't step up, in a bid to kickstart the nascent market.
NFWF announces $1.3mn in grants to support coral reefs [Global Newswire]
- The National Fish and Wildlife Foundation (NFWF) announces $1.3 million in grants to support efforts to improve the health and resilience of coral reefs in Florida, Hawai'i, Guam, and American Samoa. The grants will generate $1.3 million in matching contributions for a total conservation impact of $2.6 million.
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