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Our Climate Investment Newsletter is back from hiatus with 3 weeks of deals, commitments, and important financial and scientific developments. Catch up on what you've been missing in climate investment over the weekend, and look out Monday for a follow-up email soon with some of the smaller deals from throughout August.
In this Week’s Issue: $28 billion across 63 deals in Transition Finance ($22.3 billion), NbS ($1.6 billion), Hard-to-Abate Industries ($247 million), Carbon Removal ($142 million), and the Blue Economy ($3.8 billion).
10 Essential Deals and Commitments:
Transition Finance
- The European Investment Bank approves $5.7 billion in climate and nature investments
- NYSCRF invests $2 billion in MSCI’s World ex-USA Climate Change Index Strategy
- China’s NDB issues $1.7 billion in green bonds
Nature-based Solutions
- Nest launches a $727 million target agro-forestry fund
- The World Bank issues a $225 million outcome bond for Amazon region reforestation
- TotalEnergies signs a $100 million agreement with Anew Climate for 300,000 hectares of carbon projects
Hard-to-Abate Emissions
- Germany outlines $3.7 billion in industrial decarbonization investments
- Fortera secures $85 million for low-carbon cement production
Carbon Removal
Blue Economy
News Highlights:
Policy and Regulation
- The Philippines signs legislation to host the Loss & Damage Fund board
- Vietnam updates its green credit framework
- The Greenhouse Gas Reduction Fund begins disbursement of $27 billion in climate finance across the U.S.
Climate & NbS Finance
- Climate Bonds Initiative tracks $554 billion in ESG bond issuances in H1, 2024, $5.1 trillion issued total since 2006.
- CPI releases a new Carbon Rating Framework & currency risk report
- MIT Technology review recaps 2 years of the Inflation Reduction Act
Emerging Science
- Brazil’s agriculture struggles under the worst drought in 40 years
- A new study quantifies non-forest vegetation loss in the Brazilian Amazon
- A new paper in Nature examines the effects of climate change on forest/agriculture peripheries
C4C News and Events
Learn more about what we're doing
Or skip this section to go straight to deals
New York Climate Week is fast approaching, and Capital for Climate is excited to announce our participation in the following events:
Wednesday, September 18, 2024:
In the run-up to New York Climate Week 2024, Capital for Climate will be a strategic partner for the 2024 New York edition of the Brazil Climate Summit. Registration for the summit is now closed.
In addition to supporting the summit’s overall programming, we will be hosting a special invitation-only roadshow side event showcasing 6 of Brazil’s most exciting Nature-based Solutions funds and project developers:
You can explore these companies and more on our NbS Platform.
Monday/Tuesday, September 23-24, 2024.
The Nature Hub, Convene 101 Park Avenue: Capital for Climate is proud to be a strategic partner for the Nature Hub at NYCW 2024, a convening of two days of discussions and networking focused on how to build a nature-positive economy. We will be present at the Nature Hub for both days, and will be playing a key role in the following events:
Opening Plenary: Capital Mobilization for Nature: Towards a Nature Positive Economy. Monday, 8:30-9:39 am.
Capital for Climate is a partner with Nature4Climate, the UNFCCC Climate Champions, IFACC and others in curating the opening plenary of The Nature Hub, which will spotlight the ‘why’ and the ‘how’ of charting a path towards a nature positive economy leading to COP30. This event coincides with the launch of our joint report on Capital Mobilization for Nature with Brazil as a "playbook,” which will be posted on our and our partners’ websites.
Roundtable on Latin-American and Caribbean NbS Investment Opportunities, Monday, 10:30 - 11:30 am.
C4C Co-founder, Tony Lent, will moderate a showcase featuring companies and funds active across the region. This roundtable is part of a series of 5 one hour-long thematic sessions throughout the day focused on investment opportunities across different regions and market segments.
Closing Plenary: Pathways to Belém: Unlocking Finance for Nature in the lead up to COP 30, Tuesday, 4-5:30 pm.
Capital for Climate will support the convening of this session, which will bring together high-level representatives from the upcoming presidencies of the Rio Conventions to align priorities, explore collaboration opportunities, and create a shared vision for COP30’s success in securing necessary funding for nature recovery by 2030.
You must register here to participate in these and other programs at The Nature Hub.
Wednesday, September 25, 2024:
Closing Brazil’s Climate Finance Gap: Collaborating to mobilize investments in sustainable agriculture and nature-based solutions. 8:00 AM, Lever House, 390 Park Avenue
Capital for Climate will participate as a contributing thought partner in Climate Advisors’ Orbitas Initiative’s Wednesday breakfast workshop. This workshop will explore the current interplay between nature and climate related risks and opportunities for investors in Brazil, and how investors, governments, and civil society can help Brazil grow as a Nature-based Solutions powerhouse in the run-up to COP30.
Register here to attend this free event, with provided breakfast.
Thursday, September 26, 2024:
Runway for Change: Fashion, Finance & Impact, hosted by Ambition Loop.
5:00 PM, Civic Hall, 124 E 14th Street (register here using the general admission option)
Capital for Climate is an invitational partner for Ambition Loop’s one-of-a-kind sustainable fashion show, which will engage attendees with a mix of panel discussion, networking opportunities, and fashion displays that blend art and sustainability.
This event will showcase the Climate Investment Engine, developed by Capital for Climate and ambition loop in collaboration with the UN Climate Champions, and which aims to break down barriers to capital flow and boost investment in climate resilience projects, especially in the Global South, while fostering global collaboration for sustainable change.
Stay tuned for updates on these and other climate week events
Click here to subscribe! Or, keep scrolling for deal flow.
Nature-based Solutions ≥ $1M
Commitments and deals
Commitments
8/12-8/16
Sri Lanka launches 30x30 initiative with $1.5 billion goal [carbon pulse]
- Sri Lanka has launched the "Sri Lanka 30x30 - Conservation and Prosperity: for Nature and People" initiative, which aims to conserve 30% of the country's land and ocean by 2030 and attract $1.5 billion in green investments between 2025 and 2030. The initiative will be split across nine priority conservation programs and aims to raise capital through collaboration with international institutions, though the exact mechanisms were not yet specified.
Nest establishes $727 million target agro-forestry fund [agri-investor]
- Public Pension manager Nest has established an evergreen forestry fund that will be invested by Campbell Global. Nest expects to deploy £550 million ($727 million) into the scheme over the next 3 years, 2% of its total portfolio.
Deals
8/26-8/30
TotalEnergies signs $100 million agreement with Anew Climate and ASL [anew climate]
- TotalEnergies has signed a $100 million agreement with Anew Climate and Aurora Sustainable Lands to develop improved forest management projects. The investment will support a portfolio of 20 carbon projects covering 300,000 hectares across 10 U.S states, with credits acquired by TotalEnergies and retired beyond 2030 to voluntarily offset TotalEnergies’ scope 1 and 2 emissions.
UK National Alternative Protein Center launches with $42 million in investments [climate action]
- The UK's National Alternative Protein Innovation Center has raised £38 million ($42 million) to fund its launch. The hub will be co-hosted by the James Hutton Institute, the University of Sheffield, and Imperial College London. It will utilize a team of 30 interdisciplinary researchers and 120 international partners to develop plant-based, cultivated, and fermentation-derived products and ingredients.
BNDES approves almost $29 million for Mombak [argus media]
- BNDES has approved $28.7 million in financing for Mombak, a reforestation project developer operating throughout the Brazilian Amazon. The funding will be split into two equal lines from the BNDES Climate Fund and the bank's Finem credit line. The funding forms a major part of implementing Brazil's aim to recover 18 million hectares of forest in the Amazonian Deforestation Arc by 2050.
MEX30X30 Project launches with $18.5 million for Biodiversity Conservation [conservation]
- The Global Environment Facility has launched a $18.5 million investment in the MEx30x30 project, which aims to advance biodiversity conservation across Mexico by strengthening protected areas and supporting conservation efforts led by Indigenous peoples. The grant is the largest endorsed by GEF's Global Biodiversity Framework Fund's first tranche.
USDA Forest Service invests $15 million to help underserved landowners [usda]
- The USDA will invest $15 million to support small-acreage landowners' access to climate markets, utilizing funding through the Inflation Reduction Act. The funding will go to 9 projects across 14 states, which will provide technical and logistical support to landowners facing pressure to convert forests to other uses and wish to access voluntary programs to support conservation.
8/19-8/23
Dutch Government to provide $779 million to reduce livestock herds [green queen]
- The EU Commission has approved the launch of a Dutch program aimed at reducing livestock emissions by paying small and medium-sized farmers to reduce the size of their herds. The program will provide €700 million ($779 million) through 2029, delivered as direct payments for herd reductions in environmentally sensitive areas.
8/12-8/16
USDA announces $90 million in nature-based conservation grants [nrcs]
- The USDA will invest $90 million in 53 Conservation Innovation Grants (CIG) projects, to help develop new tools, approaches, practices, and technologies for private natural resource conservation. The funding is provided by the Inflation Reduction Act and includes the promotion of optimized fertilizer management, as well as engagement of Native Americans in bison restoration, among other initiatives.
- Stafford Capital Partners has begun deployment of its $1 billion target carbon fund, following a $242 million first close in 2023. The strategy has opened with 2 investments, $12 million to acquire 1914 hectares of land in New Zealand, and $60 million to acquire degraded pastureland in Southwest Brazil, which will be split 50-50 between commercial timber plantations and natural forest restoration.
Fund Formation
8/19-8/23
Roc Partners JV targets AUD250 million carbon credit fund [new private markets]
- ROC Partners and C6 Investment Management have announced Silva Capital, an AUD$250 million ($166 million) partnership focused on providing investors access to carbon credits by integrating reforestation projects with Africa. The new project has had an initial close of AUD$80 million from Rio Tinto, Qantas, and BHP. The fund will acquire Australian agricultural land to develop carbon sequestration projects on previously cleared areas while maintaining agricultural productivity.
Mekong Capital plans to launch $200 million Earth Regeneration Fund [agri investor]
- Mekong Capital, a Vietnam-focused private equity firm, has announced the launch of a $200 million target Earth Regeneration Fund, which is expected to launch in 2025. The Fund is expected to build on Mekong Capital's previous experience investing in agricultural projects through its Mekong Enterprise Fund IV.
Transition Finance ≥ $100M
Commitments and deals
Commitments
8/26-8/30
- Linde has signed a long-term supply agreement to provide clean hydrogen to Dow's Path2Zero Project in Canada. The agreement will be accompanied by a more than $2 billion investment in building a large-scale production facility in Alberta, Canada. The complex will use auto thermal reforming and the company's HISORP carbon capture technology to generate clean hydrogen. The complex will also recover hydrogen off-gasses generated by Dow's Ethylene Cracker. The facility is expected to sequester 2 million metric tons of CO2 annually when it is operational in 2028.
8/19-8/23
Asian Development Bank plans $12 billion climate finance platform for COP29 [asian investor]
- The Asian Development Bank (ADB) is preparing to launch a $12 billion climate finance platform at COP29 in Azerbaijan, following a 6-month delay as backers lined up. The ADB expects to make loans through the program between $20 to $300 million and to support around 150 projects, with a 60:40 split between adaptation and mitigation projects.
- Keppel, the Asian Development Bank, and Enterprise Singapore have written a memorandum of understanding to explore $800 million in energy transition and sustainability investments in the Asia-Pacific region between 2025 and 2030. The assets would be developed and operated by Keppel and would include the decarbonization of power generation, renewable energy, electric mobility, and green buildings. Collectively, the investments would aim to abate at least one million metric tons of carbon dioxide per year.
8/12-8/16
CPP to invest $1.2 billion in Tallgrass [benefits and pensions monitor]
- Canada Pension Plan Investment Board (CPP Investments) has agreed to invest $1.2 billion in Tallgrass Energy. The investment is focused on a strategy that combines traditional energy with decarbonization-focused initiatives, including hydrogen, renewable fuels, and decarbonized power asset development.
Deals
8/26-8/30
EIB approves $5.7 billion for energy, water, forestry, and clean transportation [agenparl]
- The European Investment Bank approved €10.8 billion ($12 billion) in new financing on August 28th, including €5.137 billion ($5.7 billion) for clean energy, water and forestry, sustainable transport, and communications. The energy and water investments included new solar power schemes across the bloc, onshore and offshore wind projects, and improved distribution networks, alongside sustainable forestry projects. The board also initiated 2 flagship projects to improve climate outcomes for small island developing states.
U.S invests $140 million in rural clean energy projects [usda]
- The USDA will invest $140 million in rural clean energy projects in Nevada and Kentucky to help expand reliable access to clean power, through the agency's Powering Affordable Clean Energy (PACE) program, funded by the Inflation Reduction Act. The projects funded include a 37-megawatt solar power generation and storage plant in Nevada, as well as smaller hydroelectric and solar power plants in Kentucky.
8/19-8/23
California invests $789.8 million in cap-and-trade funds in green infrastructure [davis vanguard]
- California has announced the investment of $789.8 million in cap-and-trade proceeds for 24 projects across California. The projects include the construction of 2,483 affordable, sustainably-built housing units, the installation of sustainable transit infrastructure, and the purchase of new zero-emission vehicles.
- Continuum Green Energy, an Indian renewable energy group, has agreed to a $150 million agreement with Just Climate to fund the deployment of Continuum's wind-solar-hybrid energy generation and storage projects. The investments will be made from Just Climate's Climate Asset Fund I and will help Continuum execute plans to build 1.3 GW of solar over the next 24 months.
8/12-8/16
LS Power acquires $2.5 billion in energy assets [powermag]
- LS Power will acquire 3 GW of operating renewable energy assets, as well as 8 GW of projects under development, from Algonquin Power & Utilities Corp. The deal is valued at $2.5 billion and will include 2,700 MW of operating assets in the U.S. and 300MW of assets in Canada, across more than 44 operating sites. The deal is expected to fully close by the end of 2024.
Fund Formation
8/26-8/30
- The New York State Common Retirement Fund (NYSCRF) has committed an additional $2 billion to the MSCI World ex-USA Climate Change Index Strategy, as part of the retirement fund's goal of reducing its overall greenhouse gas emission intensity by a minimum of 30%. The investment follows a $1 billion investment made in March 2023 and brings the total deployment under the company's Sustainable Investments and Climate Solutions program to $22 billion.
NBIM commits $1 billion to CIP renewables fund [reuters]
- Norges Bank Investment Management (NBIM) will invest €900 million ($1.01 billion) in Copenhagen Infrastructure Partners (CIP)'s flagship fund CI V, which invests in offshore and onshore wind, solar, grid distribution, and storage. The deal provides a major boost towards the fund's target goal of €12 billion, and the investments will be equally split between North America, Western Europe, and the Asia Pacific region.
AQR launches $350 million for new ESG-focused fund [esg news]
- AQR has raised $350 million for its Adaptive Equity Market Neutral UCITS Fund, which will short stocks with poor ESG profiles and invest in those with higher ESG scores. The fund aims to demonstrate resilience for ESG strategies after recent weakness in the market and will aim to take advantage of regulation-based harmonization of the ESG market, especially in Europe.
8/12-8/16
Silva Capital launches a $250 million low carbon economy fund [mining]
- Qantas, Rio Tinto, and BHP will invest AUD80 million ($52.7 million) in Silva Capital's Silva Carbon Origination Fund. The fund has an AUD250 million ($168 million) target and will be aimed at investors seeking high-integrity Australian Carbon Credit Units. The fund will invest in farmlands to develop large-scale carbon sequestration projects based on sustainable agricultural and land management practices, especially those focused on food and fiber production.
Green Bonds ≥ $100M
Commitments and deals
New Issuances
8/12-8/16
CCCFA to sell $1 billion in green bonds to fund power purchasing [morningstar]
- The California Community Choice Financing Authority has planned $1 billion in green bonds in connection with a 30-year electricity purchase agreement.
Completed Issuances
8/26-8/30
EIB launches $5.56 billion climate bond [esg news]
- The European Investment Bank has issued a 10-year, €5 billion Climate Awareness Euro Area Reference Note, due September 4, 20234, with an annual coupon of 2.625%. The bond closed with €34.5 billion in orders from more than 280 investors, bringing the EIB's cumulative climate and sustainability awareness bonds issuance to more than €100 billion.
8/19-8/23
NDB issues $1.7 billion in green bonds [esg news]
- China's National Development Bank has issued $1.7 billion in 3-year green bonds with a 1.63% issuance rate. The issuance brings the bank's total issuance of green bonds to 189 billion yuan ($26.57 billion). The projects funded by the bond include energy conservation, green energy development, infrastructure greening, and environmental protection, and are expected to reduce carbon dioxide emissions by approximately 697,200 tonnes and conserve 308,900 tonnes of standard coal annually.
Amprion GmbH issues $1.2 billion in green bonds [webdisclosure]
- Amprion GmbH, a transmission systems operator, has issued a €1.1 billion ($1.2 billion) green bond across two tranches. The first tranche for €500 million ($556 million) has a maturity of 6 years and a coupon of 3.125% p.a. The second tranche for €600 million ($667 million) has a maturity of 15 years and a coupon of 3.850% p.a. The proceeds will be used to finance projects in line with goals 7 and 9 of the U.S SDGs and following the international Green Bond Principles of the International Capital Market Association (ICMA).
8/12-8/16
World Bank issues $225 million Amazon outcome bond [world bank]
- The World Bank has issued a 9-year $225 million principal-protected Amazon Reforestation-Linked Bond, the largest outcome bond ever priced by the organization. The bond will provide a coupon with a fixed component and a variable component linked to Carbon Removal Units (CRUs) generated from reforestation projects in the Amazon rainforest regions of Brazil. In addition to being the largest outcome bond ever issued the the World Bank, it is also the first bond linking investors' returns to the removal of carbon from the atmosphere. The transaction will mobilize $36 million in capital to support Mombak's reforestation activities, which will help to generate the CRUs that will generate revenue.
Carbon Removal ≥ $1M
Commitments and deals
Commitments
8/19-8/23
DOE offers $127.5 million in carbon capture and removal testing technology funding [carbon herald]
- The US Department of Energy Office of Fossil Energy and Carbon Management has announced $127.5 million in federal funding to establish test centers dedicated to developing testing capabilities for carbon capture, removal, and conversion technology. The funding will support 3 categories of projects: the first focused on delivering testing capabilities for post-combustion flue gas; the second to equip existing flue gas testing centers; and the third to stimulate flue gas testing for cement manufacturing plants.
8/12-8/16
DOE launches $52.5 million DAC acceleration initiative [carbon herald]
- The U.S. DOE has announced a $52.5 million Direct Air Capture development and commercialization initiative to scale innovative CDR technology. The competition will award up to $12 million to teams that complete four development phases, operate a pilot facility for at least 2,000 hours, and demonstrate the potential to contribute to the Regional Direct Air Capture Hubs program.
Deals
8/12-8/16
Canada Growth Fund invests $100 million in Svante [esg today]
- The Canada Growth Fund (GCF) has announced an investment of $100 million into carbon removal technology developer Svante. The investment is part of a strategic push to improve Canada's industrial decarbonization capacity. The company is currently constructing a 141,000 square foot facility in Burnaby, which will be able to produce filters capable of capturing 10 million tonnes of CO2 annually.
LanzaTech receives a $40 million convertible note from Carbon Direct Capital [impact alpha]
- LanzaTech Global, a carbon recycling company, has announced a $40 million investment from Carbon Direct Capital, alongside other recent financial and technological developments. The funding is expected to be used to scale the company's operations and technology, which include carbon recycling and sustainable aviation fuel technologies.
Hard to Abate Sectors ≥ $1M
Commitments and deals
Commitments
8/26-8/30
DOE updates $100 million carbon utilization program [carbon herald]
- The U.S. Department of Energy has announced updated rules for its $100 million carbon utilization program, with funding aimed at assisting states, local governments, and public utilities in acquiring carbon utilization technology. The main updates include raising the maximum individual award to $5 million and providing a new opportunity for $10 million in funding for a 10% reduction in GHG emissions, or a $20 million award for a 25% reduction.
8/19-8/23
Germany plans $3.7 billion in industry decarbonization investments [abc news]
- The German government has announced plans to provide $3.7 billion in funding for industrial decarbonization projects, including underground carbon dioxide storage. The program will launch in September of 2024 and will run until 2030 with annual bidding.
8/12-8/16
DOE invests $15 million in industrial decarbonization facilitation [doe]
- The U.S. Department of Energy Office of Clean Energy Demonstration will provide $15 million in funding to help address adoption challenges preventing later-stage commercialization, demonstration, and deployment of industrial decarbonization technologies. The Collaborative Alignment for Critical Technology Industries – Industrial Decarbonization Lab Call will provide funding for stakeholders to collaborate on 3 major topic areas: 1. Collaborative Alignment on Decarbonization of Chemicals & Refining Industry 2. Collaborative Alignment on Decarbonization of the Concrete and Cement Industry and 3: Collaborative Alignment on Decarbonization of the Metals Industry.
Deals
8/26-8/30
Sunswap raises $22 million to decarbonise cold chains [eu startups]
- Sunswap, a UK-based clean-tech startup, has raised €20 million ($22 million) in an initial funding round. The investment is expected to accelerate the deployment of its zero-emission refrigeration vehicles, which the company hopes will be used to help decarbonize cold-chain transport.
8/19-8/23
Fortera secures $85 million for low-carbon cement [businesswire]
- Fortera, a low-carbon cement technology company, has secured $85 million in series C funding to help scale the deployment of its ReCarb product. The company's technology supplements existing cement manufacturing plants and captures CO2 from production, with fully implemented plants capable of producing 70% less CO2 per ton than ordinary cement.
8/12-8/16
Guidewheel raises $31 million [esg today]
- Guidewheel, an AI-powered factory optimization platform, has raised $31 million in a Series B funding round led by Decarbonization Partners, BlackRock and Temasek's decarbonization-focused fund. The company uses sensors to monitor power supply in factories and reduce power usage and emissions.
Blue Economy ≥ $1M
Commitments and deals
Deals
8/19-8/23
EU pledges $3.71 billion in ocean protection investments [wam]
- The EU has pledged a €3.5 billion investment in ocean protection, across 40 initiatives. The commitments include sustainable fishery investments as well as marine pollution reductions.
8/12-8/16
U.S invests $34 million in NOAA fisheries modernization [noaa]
- The U.S. will invest $34 million in Inflation Reduction Act funds to modernize NOAA's Fisheries' data, infrastructure, and workforce. The modernization of the organization's data systems will help to support the fishing industry overall and provide them with tools for making sustainability and climate adaptation decisions.
Research and Knowledge Sharing
Grow your climate finance expertise For more key insights on policy and science, check out Nature 4 Climate & Subscribe to their newsletter for more weekly updates.
Policy and Regulations
Vietnam updates green credit framework [green central banking]
- Vietnam has announced updated green credit regulations, authorizing the State Bank of Vietnam to take responsibility for issuing guidance on green credit and environmental risk management. The new regulations mandate all domestic lenders and foreign banks operating in Vietnam to have internal regulations on environmental risk management by 2025.
Philippines signs Loss and Damage Fund Board Act [mirror]
- The Philippine’s president has signed into law the country's "Loss and Damage Fund Board Act" authorizing the country to serve as host for the Loss and Damage Fund. The legislation provides the board with a legal framework for its actions and scope of negotiation with the World Bank.
Machine learning enabled review of Climate policies finds mixed effectiveness [science]
- An evaluation of 1500 climate policies implemented over the 21st century in Science has found 63 highly successful ones. The study utilized machine learning to identify policy interventions that delivered total emission reductions between .6 billion and 1.8 billion metric tons of CO2.
GGRF recipients begin accessing funds [epa]
- Organizations awarded funds by the Inflation Reduction Act's Greenhouse Gas Reduction Fund were authorized to begin accessing and distributing their funds on August 16th. The fund, which is split between the $14 billion National Clean Investment Fund (NCIF), the $6 billion Clean Communities Investment Accelerator (CCIA), and the $7 billion Solar for All program, provides local financing to accelerate climate solutions across the country, with funds recirculating to create long term impact.
Finance Research and Updates
- The Climate Bonds Initiative has released its latest Sustainable Debt Market summary. The report finds a cumulative volume of $5.1 trillion in green, social, sustainability, sustainability-linked bonds, and transition bonds through from 2006 June 30 of 2024. The study also found a total of $554 million in sustainable debt was issued in H1 of 2024.
A new paper examines patterns of the emerging international hydrogen market [science direct]
- A new paper in the Journal of Environmental Economics and Management tracks the growth of the international trade in hydrogen through both an economic and environmental impact lens. The article examines the current state of supply and demand in the hydrogen market and the relative growth and status of different hydrogen sectors, including green and conventional models.
SBTI launches building decarbonization framework [sustainability mag]
- SBTI has launched its first framework for the buildings’ value chain, alongside recommendations for building industry players that want to take action on decarbonization. The report outlines 4 key actions for decarbonization:
- Stop fossil fuel installations
- Reduce in-use emissions
- Retrofit inefficient buildings
- Reduce upfront embodied emissions,
Companies are recommended to commit publicly to halting the installation of fossil fuel-based heating and power generation by 2030 at the latest.
CPI releases currency risk report [climate policy initiative]
- The Climate Policy Initiative has released a new currency risk report, outlining the current issues facing EMDE in securing climate financing due to currency risk barriers. The paper looks at risks from debt denomination in hard currency and potential strategies for providing climate lending in local currency.
China releases updated numbers on green investment [e fund management]
- E Fund Management has analyzed recently released numbers on green investment in China, including China's green loan balance reaching $4.1 trillion at the end of 2023. Cumulative domestic green bond issuance approached $498 billion that year as well, according to the IFG.
Study finds demand for low-quality credits undermining voluntary carbon market [phys]
- A new Nature Communications study by researchers at Kyoto University has found that the 20 companies that have retired the most Voluntary Carbon Market credits over the past 4 years have relied largely on low-quality, low-cost credits. The research relies on an original dataset based on the three largest offset registries in the VCM: Verra's Verified Carbon Standard, the United Nations' Clean Development Mechanism, and Gold Standard. The team's analysis found that none of the 20 companies' studies could claim that all of their offsets met known VCM quality standards and that many were prioritizing cheap, low-quality offsets.
CPI releases carbon rating framework [climate policy initiative]
- The Climate Policy Initiative has released its new "Carbon Rating Framework" whitepaper, which presents a new methodology for rating companies based on carbon emission intensity, both current and projected over 5 years. The framework is intended to complement existing credit ratings
Natural Areas Conservancy releases paper on funding urban forested natural areas [natural areas NYC]
- The Natural Areas Conservancy has released a new study of trends in funding and maintaining urban forested areas. The report provides case studies and recommendations for forested area space managers throughout the U.S.
Nature4Climate explores how to build deforestation-free portfolios [nature4climate]
- Nature4Climate has published a recap of its June London Climate Action Week panel on building deforestation-free finance. The summary of the expert panel provides background on the current state of deforestation-free finance initiatives, including the new Deforestation-free Transition Pathway, as well as the current implementation of frameworks like the TNFD.
MIT Technology review tracks investments in 2 years since IRA [technology review]
- The MIT Technology Review has published a handy summary of the flow of IRA funds into the U.S. green economy, as well as the catalytic effect it has had on private capital. Some highlights include the $110 billion in private capital committed to 159 green energy, transport, and infrastructure projects from August 2022 to May 2024, as well as the regulatory hurdles that have delayed the implementation of some of the bill's signature tax credits.
US supplants China as the top market for climate-tech financing [live mint]
- The US has surpassed China as the world's top destination for climate-tech financing in the first half of 2024, despite a fall in the total amount invested in the country, according to a BloombergNEF analysis. U.S companies raised $6.7 billion, down from $9.8 billion in the first half of 2024, but this still outstripped China, where climate-tech companies raised only $5.1 billion in the first half of 2024, a little more than 1/3rd of the $14.5 billion raised in the same period last year.
Emerging Science
- Frontiers has published a new article on the emergence of blue carbon natural climate solutions investment in Australia and how large-scale feasibility assessments can be conducted to identify actionable projects. The study found 32 potential sites of high-potential representing 21,114 hectares of high-priority blue carbon restoration.
- A new Frontiers study aims to measure carbon offset potential by comparing a construction-impacted deforestation site with a larger conserved forest area in Espoo, Finland. The study examined multiple scenarios to determine potential carbon loss over time based on business-as-usual forest management, total conservation, or high rates of deforestation.
Nature paper examines climate change exacerbated tensions between forestry and agriculture [nature]
- A new article in Nature analyzes the propensity of climate change to exacerbate land conflict between agricultural and timber production models. The study estimates that, under RCP2.6 and RCP 8.5, 20-26% of current forestry land will become more suitable for agriculture by 2100, with forestry land already contributing 21-27% of agricultural productivity frontiers. The study recommends improved management techniques on current forest land to limit loss to agriculture and increased degradation.
Frontiers article examines carbon finance's effect on green economic efficiency in China [frontiers]
- A paper in Frontiers reviews 30 Chinese provincial-level administrative regions to assess sustainable economic development measured by green total factor productivity (GTFP). The study finds a significant positive impact of province-level carbon finance improvement on sustainable economic growth, specifically through improving technological progress and technological market turnover.
Worst drought in 40 years hits Brazil, posing major agricultural problems [bloomberg]
- Brazil is currently suffering from its worst drought in 40 years, with major impacts on commodity crop production, especially coffee and soybean harvests. The drought has already contributed to a 30% rise in Arabica coffee commodity prices and is likely to severely impact and delay the soybean harvest.
BES launches review of NbS methods for ensuring resilient implementation [journal of ecology]
- The British Ecological Society's Journal of Ecology has published a new review of the conception of environmental resilience in nature-based solutions literature. The study found that resilience reporting was limited for methods aside from afforestation, and suggested mechanisms for better categorizing and capturing biodiversity resilience mechanisms.
A new article aims to quantify unaccounted-for non-forest vegetation loss in Brazil [nature]
- A new article in Nature examines techniques for estimating unaccounted-for non-forest vegetation loss in the Brazilian Amazon region, by building over the PRODES satellite monitoring methodology. The study found that the Brazilian Amazon may have lost 10.46% of non-forest area, with most of the loss concentrated in the last two decades. Mato Grosso, Roraima, and Amapá were the primary hotspots of losses.
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The Nature Tech Market. Necessary, Emergent, Dynamic
Capital for Climate, along with its partner, Nature4Climate, released a first-of-its-kind landscape analysis of the nature tech market. This report illuminates a burgeoning sector that will help protect, manage, and restore nature.Click here for the report!
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