The COP15 Effect | 2/15 - 2/28
Feb 28, 2023
·
Written by
David King
Your Newsletter at a Glance
Note from the author: Biodiversity takes center stage... According to Environmental Finance, biodiversity linked fund assets tripled in 2022. Of note, these numbers come from “funds or strategies mentioning ‘biodiversity’ in their title”. In reality, this burgeoning sector paints a much more nuanced picture. On top of the expected lack of uniformity in disclosures there is no one metric, like CO2e, for biodiversity to measure and trade. Even so, it seems the effects of COP27 combined with COP15 on the global financial community is in full force.
Market Watch
EPA launches $27bn Greenhouse Gas Reduction Fund [Environmental Finance]
- The U.S. Environmental Protection Agency (EPA) has released initial guidance on the design of the Greenhouse Gas Reduction Fund (GGRF) program, created by President Biden’s Inflation Reduction Act (IRA).
Iberdrola boosts net profit to EUR 4.34bn in FY 2022 [Renewables Now]
- The company highlighted the strength of its US and Brazilian operations and a record amount of investments -- totalling EUR 10.7 billion -- for its good fortunes in 2022. It also said it had overcome global supply chain issues, which enabled it to purchase goods and services worth EUR 17.8 billion last year.
Research
Energy Transition Investment Hits Record High Of $1.3 Trillion [Yahoo Finance]
- Global investments in energy transition technologies, including energy efficiency, hit a record high of $1.3 trillion in 2022, up by 19% compared to 2021 and a massive 50% surge compared to the pre-pandemic 2019, the International Renewable Energy Agency (IRENA) said in a new report.
[NbS] Market Watch
Pure Salmon secures £421.5 million Saudi Arabian deal [The Fish Site]
- Pure Salmon, which is owned by the Singaporean private equity fund 8F Asset Management, aims to become “the world’s largest sustainable Atlantic salmon producer”, by establishing an international network of farms which produce 260,000 tonnes between them.
Crédit Agricole to invest $320m in 'agri-food' transition [Environmental Finance]
- Crédit Agricole has launched a €300 million investment fund dedicated to the sustainable transition of agricultural and agri-food companies in France and Italy.
[NbS] Research
MSCI to incorporate biodiversity data through NatureAlpha partnership [ESG Clarity]
- MSCI is set to distribute biodiversity data and analytical tools from NatureAlpha, an AI and data-driven platform providing specialist insights into nature footprints and risks.
IFC adds 'blue,' biodiversity projects to green bond framework [Environmental Finance]
- The update is based on the guidance published by the IFC in 2022 around biodiversity and blue finance which are intended to support the issuance of bonds and loans targeting biodiversity and marine conservation projects.
Individual Deals & Market Watch
EPA launches $27bn Greenhouse Gas Reduction Fund [Environmental Finance]
- The U.S. Environmental Protection Agency (EPA) has released initial guidance on the design of the Greenhouse Gas Reduction Fund (GGRF) program, created by President Biden’s Inflation Reduction Act (IRA).
Iberdrola boosts net profit to EUR 4.34bn in FY 2022 [Renewables Now]
- The company highlighted the strength of its US and Brazilian operations and a record amount of investments -- totalling EUR 10.7 billion -- for its good fortunes in 2022. It also said it had overcome global supply chain issues, which enabled it to purchase goods and services worth EUR 17.8 billion last year.
- Funding for climate fintech hit record levels in 2022 with investment in carbon accounting and offsetting startups increasing several times over.
U.S. DOE Funds Carbon Capture Programs with $2.5 Billion [Carbon Credits]
- The U.S. Department of Energy (DOE) rolled out $2.52 billion to fund two carbon capture initiatives that aim to speed up and boost investment in technologies that capture, transport and store carbon.
Ørsted sells EUR 2bn of green bonds [Renewables Now]
- Danish clean energy group and offshore wind major Ørsted A/S (CPH:ORSTED) raised EUR 2 billion (USD 2.1bn) through a green bond issuance to fund its renewable energy build-out.
AEP to sell gigawatt-scale renewables portfolio at USD-1.5bn EV [Renewables Now]
- American Electric Power Company Inc (NYSE:AEP) has struck a deal to dispose of its portfolio of unregulated, contracted renewables totalling 1,365 MW to a partnership owned by Invenergy, CDPQ and funds managed by Blackstone Infrastructure.
Singaporean IPP startup eyes USD 1bn of funds for wind, solar [Renewables Now]
- Singaporean independent power producer Athein, a platform formed by four Southeast Asian companies, will seek to raise USD 1 billion (EUR 939.4m) in the next three years to finance its gigawatt-scale pipeline of wind and solar projects.
Sinopec launches USD-835m green hydrogen demo in Inner Mongolia [Renewables Now]
- The Inner Mongolia Erdos Wind-Solar Green Hydrogen Project will rely on 450 MW of wind and 270 MW of solar power generation capacity to run electrolysers in order to produce 30,000 tonnes of green hydrogen annually. The project also includes 288,000 cubic metres of hydrogen storage capacity.
Geely's EV brand Zeekr raises $750 million in fresh funding round [Reuters]
- Zeekr, the electric car brand of China's Geely Automobile Holdings (0175.HK), is raising $750 million from five new and existing investors in a funding round that values the brand at $13 billion.
NextEnergy Capital raises $715m for UK solar fund [Environmental Finance]
- The fund exceeded its £500 million target and is working towards its hard cap of £1 billion. The Fund had its first two closings in August and December, last year.
Indonesia's Pertamina Geothermal Energy debuts with USD-595m IPO [Renewables Now]
- PT Pertamina Geothermal Energy Tbk (PGE), part of Indonesian state-owned energy company PT Pertamina (Persero), made its trading debut in Jakarta through an initial public offering (IPO) that fetched IDR 9.06 trillion (USD 595.6m/EUR 555.4m).
U.S. EPA unveils $550 mln in environmental justice grants [Reuters]
- President Joe Biden's administration announced it will select 11 organizations across the United States to administer $550 million in grants to disadvantaged communities for reducing legacy pollution and gaining access to clean energy.
REC to raise over $500 million overseas via green bonds [India Times - Economic Times]
- Mumbai: REC plans to raise a minimum $500 million by issuing a green bond in the overseas market to finance solar, wind and refinance renewable energy projects.
Greenko Energy to prepay bonds worth $500 million [India Times - Economic Times]
- Greenko Energy Holdings, one of the largest clean energy companies in the country, is set to prepay a tranche of $500 million of its dollar bonds that would mature in August this year using its near-term cash flows, people familiar with the matter told ET. The company clocked $625 million in Ebitda (operating profit) in FY22 and is expected to close fiscal year 2023 at $650 million on revenues of $720 million.
- In its inaugural green bond offering. BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Mizuho Securities USA LLC are serving as active joint book-running managers for the offering, with Citigroup Global Markets Inc. also acting as the green structuring agent.
NY Battery-Recycling Project Gets $375 Million US Backing [Bloomberg]
- Energy Department offers conditional loan to Li-Cycle Holdings
Phoenix Group assigns £338m to multi-asset climate solution [Pensions Age]
- Phoenix Group detailed that net-zero 2050 climate equities and climate global bonds will be allocated the greatest percentage of the fund, each receiving 20 per cent, whilst smart energy equities will be allocated 15 per cent.
Insurer NN, Rivage launch €300m sustainable infrastructure debt fund [IP&E Real Assets]
- NN and Rivage have launched the Rivage Private Debt Fund for Infrastructure Climate Solutions, a fund that seeks to finance infrastructure assets that provide solutions to challenges posed by climate change.
- Hong Kong’s finance chief has announced plans to transform the city into an international centre for green technology, including bond issues totalling HK$15 billion.
EC greenlights $182.3m scheme for PtX support in Denmark [Renewables Now]
- The European Commission (EC) today announced its approval, under EU State aid rules, of a EUR-170-million (USD 182.3m) scheme in Denmark to support Power-to-X (PtX) projects for the production of renewable hydrogen.
S. Korea to create $116.9mln fund for steelmakers' low-carbon transition [Yonhap News Agency]
- Industry Minister Lee Chang-yang and chiefs of the country's seven major steelmakers, including POSCO Holdings Inc., Hyundai Steel Co. and Dongkuk Steel Mill Co., signed an agreement to promote investment and technology development to achieve low-carbon steelmaking, according to the Ministry of Trade, Industry and Energy.
Bulgaria opens EUR-102m call for corp solar-plus-storage projects [Renewables Now]
- The Bulgarian government is inviting applications under a BGN-200-million (USD 109.7m/EUR 102.3m) measure aimed at providing financial support to local firms looking to install new solar-plus-storage systems.
United Airlines launches $100 mln sustainable fuel investment fund [Reuters]
- The Chicago-based carrier along with inaugural partners such as Air Canada (AC.TO), Boeing (BA.N), General Electric (GE.N) JPMorgan Chase (JPM.N) and Honeywell (HON.O) have invested in the United Airlines Ventures Sustainable Flight Fund, it said.
EU carbon hits 100 euros taking cost of polluting to record high [Reuters]
- EUAs are the main currency in the European Union's Emissions Trading System (ETS) that forces manufacturers, power companies and airlines to pay for each tonne of carbon dioxide they emit as part of the bloc's efforts to meet its climate targets.
Research, Frameworks, & Case Studies
Energy Transition Investment Hits Record High Of $1.3 Trillion [Yahoo Finance]
- Global investments in energy transition technologies, including energy efficiency, hit a record high of $1.3 trillion in 2022, up by 19% compared to 2021 and a massive 50% surge compared to the pre-pandemic 2019, the International Renewable Energy Agency (IRENA) said in a new report.
'Article 9' sustainable funds attracted €26bn in 2022 [Environmental Finance]
- ‘Article 9’ funds attracted €26 billion ($28 billion) of net new money last year, bucking a broader trend of net outflows, according to the European Fund and Asset Management Association (EFAMA).
- Renewable infrastructure is the biggest beneficiary, with 44% of investors polled already having exposure to this asset type and planning to increase their investments. In fact, 27% of institutions plan to increase their exposure to sustainable real assets in general.
Unpriced flood risks may inflate US housing bubble [Manifest Climate]
- In a study published in the journal Nature Climate Change, experts from the Environmental Defense Fund, First Street Foundation, the Federal Reserve, and academic institutions claim this underpricing is fueling a housing bubble that, if popped, could destabilize the US real estate market.
Current Climate: Funding For Carbon-Reduction Tech Hits $4.2 Billion [Forbes]
- Last year investors pumped nearly $4.2 billion into startups working on technology to reduce CO2 emissions, up from $3.6 billion in 2021, according to PitchBook.
EU wind, solar boost saves EUR 12bn in gas costs since war began - Ember [Renewables Now]
- Energy think tank Ember estimates that the increase in wind and solar generation across the EU has avoided EUR 12 billion (USD 12.8bn) in gas costs since the start of the war in Ukraine on February 24, 2022.
Clean-energy leaders outperforming indexes, study says [Pensions & Investments]
- The Carbon Clean 200 2023 report lists 200 publicly traded companies worldwide that are considered leaders among global peers in the clean energy transition.
[NbS] Individual Deals & Market Watch
Pure Salmon secures £421.5 million Saudi Arabian deal [The Fish Site]
- Pure Salmon, which is owned by the Singaporean private equity fund 8F Asset Management, aims to become “the world’s largest sustainable Atlantic salmon producer”, by establishing an international network of farms which produce 260,000 tonnes between them.
Crédit Agricole to invest €300m in 'agri-food' transition [Environmental Finance]
- Crédit Agricole has launched a €300 million ($320 million) investment fund dedicated to the sustainable transition of agricultural and agri-food companies in France and Italy.
Protein Industries Canada Receives $150M CAD in Federal Funding for Next Five Years [Vegconomist]
- Protein Industries Canada (PIC) announces it has received $150M CAD in funding from the Canadian government to continue to accelerate plant-based protein innovation. François Philippe Champagne, the country’s Minister of Innovation, Science and Industry, today announced the renewal as part of a $750M investment into the Global Innovation Cluster program.
Loam Bio raises $73m Series B from Lowercarbon, Acre, others to boost soil carbon [Ag Funder News]
- Loam will use the funding to expand the availability of its seed coating that supercharges plants’ ability to store carbon in the soil.
CSAA Insurance Group Invests $25M in New California Wildfire Innovation Fund [Business Wire]
- CSAA Insurance Group announced a $25M commitment to the California Wildfire Innovation Fund, a climate-solutions strategy that aims to decrease the severity and frequency of catastrophic wildfire by supporting forest restoration-related economic development.
Aspiration partners with TREES on $21m reforestation in Kenya [Quantum Commodity Intelligence]
- US climate finance company Aspiration on Wednesday announced a $21m investment in reforestation
Minister Duclos announces $20M for SOCODEVI to support climate adaptation in Senegal [Relief Web]
- The project, worth $20 million over the next 3 years, will enable the adoption of nature-based solutions to help conserve mangrove ecosystems, enhance climate resiliency and biodiversity, and support inclusive and equitable governance of the natural resources of mangrove systems in Senegal.
- The U.S. Fish and Wildlife Service is awarding nearly $19 million to support 21 projects in eight coastal states to protect, restore or enhance nearly 14,000 acres of coastal wetlands and adjacent upland habitats under the National Coastal Wetlands Conservation Grant Program.
- Company officials said they will use the funds to focus on driving growth in the seaweed materials market, launch new products and novel seaweed resins, and expand the company’s research and development capabilities.
WDFW, DNR award $14 million for projects that preserve and restore Puget Sound habitat [WDFW]
- This investment will help to advance habitat restoration and protection efforts to restore eelgrass habitat and enhance kelp forest conservation, expediate floodplain and estuary restoration projects, and provide incentives to private landowners to improve habitat along shorelines and streams and in working farms and forests.
Paleo Raises €12M to Produce Animal-Free Heme for “Real Taste” Plant-Based Foods [Vegconomist]
- Brussels-based precision fermentation firm Paleo, which aims to be a functional ingredient supplier for the alt protein sector, has raised €12 million in a Series A funding round to scale up the production of animal-free heme proteins and help manufacturers bring the “real taste” of meat to plant-based foods.
- The U.S. Department of Agriculture announced that nearly $10 million is being invested in forest nursery and native seed partnerships, thanks to funding from President Biden’s Bipartisan Infrastructure Law. Of the total funding, $4.5 million is being invested in twenty-nine facilities from states, U.S. Island territories and commonwealths to modernize forest nurseries and $5.3 million will help increase native seed collection and native plant availability to restore and support resilient ecosystems on national forests and grasslands.
$9.1 Million In Oyster Funding Pushes Eastern Shore Restoration Ahead [Chesapeake Bay Magazine]
- The Maryland Board of Public Works, a three-member panel chaired by Democratic Gov. Wes Moore, removed the funding obstacle during its Feb. 15 meeting. The board approved the first installment of a $9.1 million contract with the nonprofit Oyster Recovery Partnership. The funding will enable the group to launch the active restoration of the Manokin as well as continue work in the remaining tributaries, officials say. The contract extends until the end of 2025.
The Ugly Company targets expansion with $9M in funding [Super Market News]
- The Ugly Company, whose product offerings include white nectarines, kiwis, cherries, peaches, and apricots, said its focus is to prevent food waste by upcycling “ugly fruit” and transforming it into healthy dried fruit snacks.
£7.6m boost to transform Scotland’s nature [Nature Scot]
- Projects across the country to expand forests, restore habitats, protect threatened species and improve our resilience to climate change have been awarded a share of £7.6m from the Scottish Government’s Nature Restoration Fund.
Robigo Secures $7M Seed Round to Protect Crops from Untreatable Diseases [Business Wire]
- Robigo, a company that biomanufactures precision crop protection solutions, announced that it has raised $6.85 million in Seed funding led by early stage climate tech fund, Congruent Ventures, with participation from other deep technology investors, including Good Growth Capital and First Star Ventures, amongst others.
Planetarians raises $6M to upscale vegan meat from upcycled ingredients [Vegconomist]
- B2B plant-based foods company Planetarians has raised $6 million in a Seed II investment round to produce at a commercial scale its vegan meat blocks and supply the food service industry.
$5M grant will strengthen conservation in Liberia [UGA Today]
- The U.S. Agency for International Development has awarded the University of Georgia approximately $5 million for the implementation of a program entitled Higher Education Conservation Activity (HECA) in the Republic of Liberia. The timing of the project comes at a tipping point for Liberia’s forests, which account for roughly half of the remaining rainforest in West Africa.
US start-up raises $4 mln for fungal-based carbon removal credits [Carbon Pulse]
- The development of an integrated anaerobic digestion and green biorefining demonstration facility offers the opportunity for the project to demonstrate climate action and diversification opportunities. This is done through the development of renewable energy sources and the displacement of off-farm emissions associated with a dairy farm through production of local sources of protein and biobased fertiliser.
- Right now, Kramer tells AFN, a handful of microbial workhorses do the bulk of the work in this field, whereby microbes serve as mini-production factories to make everything from flavors, colors, sweeteners, and enzymes to ‘animal-free’ dairy proteins.
Ontario Government Invests $2.1M For Tree Planting Through Forests Ontario [Muskoka]
- The announcement from the Ontario government follows news from November that Forests Ontario has partnered with the Government of Canada’s 2 Billion Trees program to plant 7.2 million trees over three years.
Funding of £1.8 million to help nature projects grow [Grampian Online]
- The Scottish Government and NatureScot, working in partnership with the National Lottery Heritage Fund, and with support from the Green Finance Institute, are launching a new programme of support to help scale up private investment in Scotland’s natural capital.
Federal Funding: $1.8M for habitat restoration [The News Guard]
- The Lower Columbia Estuary Partnership (LCEP) will be receiving $1,818,000 from the U.S. Environmental Protection Agency (EPA) for habitat restoration and conservation through the National Estuary Program.
Amazon grants 1.5 mln euros to Dutch seaweed farm project [Reuters]
- Amazon.com has granted 1.5 million euros ($1.6 million) to a Dutch project testing the viability of commercially growing seaweed in between turbines of offshore wind farms, the company and organisers said.
Pennsylvania gets $1 million to restore bird habitats [The Progress]
- Pennsylvania will receive about $1 million for habitat restoration to benefit two at-risk bird species in 2023. The money is part of a $49 million spending project across 13 states and Guam to manage environmental risk and climate change. Divvied out as part of the Joint Chiefs’ Landscape Restoration Partnership, the projects “mitigate wildfire risk, improve water quality, restore forest ecosystems, and ultimately contribute to USDA’s efforts to combat climate change,” according to a press release.
Philippines signs carbon, biodiversity MoU with major infrastructure firm [Carbon Pulse]
[NbS] Research, Frameworks, & Case Studies
MSCI to incorporate biodiversity data through NatureAlpha partnership [ESG Clarity]
- MSCI is set to distribute biodiversity data and analytical tools from NatureAlpha, an AI and data-driven platform providing specialist insights into nature footprints and risks.
IFC adds 'blue,' biodiversity projects to green bond framework [Environmental Finance]
- The update is based on the guidance published by the IFC in 2022 around biodiversity and blue finance which are intended to support the issuance of bonds and loans targeting biodiversity and marine conservation projects.
- However, the numbers also show that global investment in sustainable proteins decelerated in 2022, from a record-breaking €4.7 billion in 2021 to €2.7 billion in 2022, mirroring the marked decline in global venture capital investment.
$1b funds for alternative protein in Israel [No Camels]
- Israel’s alternative protein industry attracted over $1 billion of investment in the last two years, second only to the USA, according to a new report from the Good Food Institute.
- The data provided by SkyQuest highlights the pressing issue of solid waste and its impact on greenhouse gas emissions. The staggering 12 billion tons of solid waste produced annually is a cause for concern, mainly when it produces 1.8 billion CO2 emissions. In addition, the risk of improperly disposing of 10% of goods produced poses a severe threat to the environment. Therefore, it is imperative to implement effective food waste management solutions to mitigate the negative impact of waste on the environment.
SBTN launches draft targets for nature conservation on land [Environmental Finance]
- The release of the 162-page draft methodology is a "critical" step as the network prepares to launch a process for validating corporate nature targets, that would be similar to the process for validating climate targets by the Science-Based Targets initiative.
USDA Reveals How Nearly $1B in New Conservation Funding Will Be Spent [TRCP]
- The once-in-a-generation influx of conservation spending will support a diverse range of voluntary activities, such as planting filter strips and grassed waterways, improving grazing management, and restoring wetlands. These practices are being prioritized for their carbon sequestration and greenhouse gas reduction benefits, in addition to co-benefits of wildlife habitat and water quality improvements.
At a CAGR of 14.0% Regenerative Agriculture Market to Cross US$16.8 billion by 2027 Globally [Yahoo]
- The global regenerative agriculture market size is estimated to be valued at USD 8.7 Billion in 2022. It is anticipated to reach USD 16.8 Billion by 2027, recording a CAGR of 14.0% in value. Regenerative agriculture is an outcome-based food production strategy that improves farm productivity and financial success while nurturing and restoring soil health.
Investment will flow from nature-related disclosures, says Glen [Pinsent Masons]
- Businesses that publish details of their “nature-related risks, impacts and dependencies” stand to benefit from fresh investment, a UK government minister has said.
Tech firm debuts ocean-based carbon removal protocol [Business Green]
- Planetary Technologies shares new measurement approach it hopes will allow purchasers to buy ocean-based carbon removal credits with confidence.
- The What climate-smart agriculture means for smallholder farmers, report reveals climate change will also severely affect land suitability for crop production, with India alone set to lose 450,000 square kilometers of land currently usable for rainfed rice cultivation.
Biodiversity fund assets triple in 2022 to nearly $1trn [Environmental Finance]
- Total assets held in thematic biodiversity funds more than tripled over the course of last year, boosted by several fund launches, according to research by Environmental Finance.
Check out our NbS Investment Platform Here!
The Nature Tech Market. Necessary, Emergent, Dynamic
Capital for Climate, along with its partner, Nature4Climate, released a new report, "The Nature Tech Market: Necessary, Emergent, Dynamic”.
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.
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