Climate Investment Newsletter 10/1 - 10/21

Individual Deals and Market Watch

Green bond issuance crosses $2trn milestone [Environmental Finance]

• More than $2 trillion has been raised through green bonds since the first instrument was issued 15 years ago, as the oldest sustainable bond market crossed a key landmark.

Carbon footprint management market value to reach USD 18.2 billion by 2031 [NewsWires]

• Global carbon footprint management market was valued at $9.3 billion in 2021 and is estimated to reach $18.2 billion by 2031, growing at a CAGR of 7% from 2022 to 2031.

Top climate tech deals net nearly $4B in Q3, outpacing other industries [Tech Crunch]

London Stock Exchange declares $3bn green bond to be designated to its Sustainable Bond Market [Climate Action]

• The dominating global hub for sustainable finance, the London Stock Exchange is welcoming $3 billion in green bond listings over a one-hundred-year period from the Public Investment Fund (PIF), the first to be supplied by a sovereign wealth fund.

Renault sets up recycling unit with $2.2 billion sales goal [Bloomberg]

• The French automaker is setting up a new entity that’s targeting sales of more than €2.3 billion ($2.2 billion) and a more than 10% operating margin by 2030. Renault also said that it’s seeking external investors to co-finance around €500 million of spending it has planned.

APG buys 49% stake in USD-1.2bn Gemini hybrid in Nevada [Renewables Now]

• Dutch pension asset manager APG has purchased a 49% stake in the USD-1.2-billion (EUR 1.24bn) Gemini solar-plus-storage complex near Las Vegas, Nevada.

InterEnergy secures USD-1bn investment from Brookfield Renewable, Stonepeak [Renewables Now]

• Latin America-focused power provider InterEnergy Group Ltd has secured a major commitment from new investors that will enable it to execute a 1,000-MW-plus renewables pipeline and expand services in its markets.

Austria issues 1 bln euros in first ever green T-bill [Yahoo]

• Austria issued 1 billion euros ($983.20 million) in the auction of the first ever green T-bill, a move aimed at attracting shorter-term investors to buy environmentally friendly assets.

Alternus secures USD-863m valuation, Nasdaq listing with SPAC merger [Renewables Now]

• Ireland-based and solar-focused independent power producer (IPP) Alternus Energy Group Plc (OSE:ALT) has agreed a merger with a blank check company that will give it a US listing on Nasdaq and an initial equity value of about USD 863 million (EUR 889m).

Royalty-backed Lightrock packs $834 million into its first climate fund [Tech Crunch]

• Lightrock, the London-based backer of neobank Niyo and “wood modification” company Kebony, has secured about $834 million (€860 million) for a new fund focused on climate tech. The private equity and venture firm plans to pump the money into startups in areas such as clean energy, decarbonization and sustainable agriculture.

Switzerland issues debut CHF-766m green bond [Renewables Now]

• Switzerland issued an inaugural green bond of CHF 766.05 million (USD 769.38m/EUR 792.68m) in an auction, drawing strong interest.

LanzaTech secures $550 million carbon recycling partnership with Brookfield Renewable [Impact Alpha]

• Chicago-based LanzaTech uses microbes to convert industrial carbon emissions into sustainable fuel and inputs for textile, rubber and packaging. Earlier this year, the company agreed to a $1.8 billion merger with AMCI Acquisition Corp. II, a special purpose acquisition company, or SPAC.

Form Energy announces $450m Series E financing [Form Energy]

• Form Energy, Inc., an American technology company developing and commercializing a new class of cost-effective, multi-day energy storage systems, announced today a $450 million Series E financing round led by TPG’s global impact investing platform, TPG Rise. This financing includes amounts that are subject to regulatory approval and allocations to existing investors.

Yellow Door Energy raises USD 400m to fund business plan [Renewables Now]

• Dubai-based solar platform Yellow Door Energy Ltd (YDE) has closed a USD-400-million (EUR 412.2m) equity raise, securing the capital needed to fully fund its business plan for the next five years.

Jordan signs $125mln grant to support agriculture; combat climate change [Petra.Gov]

• Jordan and the World Bank signed the Loan Agreement for the Agriculture Resilience, Value Chain Development and Innovation (ARDI or "My Land") Programme for Results on the sidelines of the World Bank Annual Meetings.
• The US$125 Million Programme, approved by the Bank on September 29, aims to strengthen the development of Jordan’s agriculture sector by enhancing its climate resilience, increasing competitiveness and inclusion and ensuring medium- to long-term food security in line with Jordan’s National Sustainable Agriculture Plan and Vision for Economic Modernisation.

Mirova invests €100m in EV charging [Environmental Finance]

• Spanish electric vehicle (EV) charging company Zunder has raised €100 million ($97 million) from Mirova, the sustainable investment arm of Natixis.

Bluestar Energy Capital launches with $100 million for renewable energy development [Impact Alpha]

• Bluestar Energy is a new renewable energy investment firm launched by Declan Flanigan, the former head of Danish power company Orsted’s onshore wind business. The Chicago-based firm will provide early-stage development finance and operating capital for wind, solar and energy storage projects in Europe.

Macro Commitments

AEP to invest USD 9bn in regulated renewables by 2027 [Renewables Now]

• American Electric Power Company Inc (NASDAQ:AEP) plans to make capital investments of USD 40 billion (EUR 40.4m) in the 2023-2027 period, of which USD 9 billion will be spent on regulated renewable generation.

Germany to spend 6.3 bln euros on push for electric car charging points [Reuters]

• The German government approved a plan to spend 6.3 billion euros ($6.1 billion) over three years to rapidly scale up the number of charging stations for electric vehicles across the country, as part of its push towards net zero emissions.

Greenko plans to raise up to $4.5 billion for renewable energy projects [Business Standard]

• Renewable energy major Greenko Group is planning to raise up to $4.5 billion in a mix of equity and debt from local banks. The group will invest the amount in various projects over the next three years.

Enel’s €4.1bn multi-tranche sustainability bonds [Smart Energy International]

• Aimed at institutional investors in the US and international markets, the bonds, which will be separately issued in four different tranches, will be guaranteed by Enel.

BMW to invest $1.7B to build EVs in South Carolina [Tech Crunch]

• BMW plans to invest $1.7 billion to build at least six EV models in the U.S. by the end of the decade.
• The investment includes $1 billion toward BMW’s factory in Spartanburg, South Carolina and $700 million to fund a new battery cell plant nearby.

Adani, Tata Power plan to raise $1.3 bn in green bonds for new projects [Business Standard]

• Adani Green Energy (Adani Green) and Tata Power are planning on raising funds via green bonds to finance their new projects. While Adani Green is intent on raising $1 billion via green bonds, Tata Power is in the process of raising $320 million via sustainability-linked loans, say bankers.

Treasury announces $1 billion loan for Clean Technology Fund [US Treasury]

• U.S. Secretary of the Treasury Janet L. Yellen announced that Treasury has signed a loan agreement for the Clean Technology Fund (CTF)—a multilateral trust fund which helps to scale up low carbon technologies in developing countries--using resources appropriated by Congress and signed into law by President Biden.

EC clears EUR 1bn in German state aid for Salzgitter's decarbonisation [Renewables Now]

• The European Commission (EC) has approved the application for EUR 1 billion (USD 989m) in public funding to be provided to Salzgitter AG (ETR:SZG) so it could decarbonise its steel production processes by upgrading an existing facility and building a large-scale green hydrogen plant.

Air Products to build USD-500m green hydrogen plant in New York [Renewables Now]

• Air Products (NYSE:APD) said it plans to invest USD 500 million (EUR 507m) in a liquid green hydrogen plant in the state of New York.

Golding launches €300m energy transition fund [Environmental Finance]

• Golding Capital Partners has launched a €300 million ($263 million) fund to invest in ‘energy transition’ infrastructure.

Glennmont Partners launches 250 mln euro green credit fund [Reuters]

• Clean energy fund manager Glennmont Partners has launched a 250 million euro ($241 million) green credit fund to invest in clean energy and infrastructure assets, it told Reuters.

Norfund, BII, Finnfund invest $200m in African forestry fund [Reuters]

• The Norwegian, British and Finnish development finance arms have put $200 million into an African forestry fund, the organisations said, as part of a plan to invest in sustainable tree businesses in the region.

Chemours Company announces $200 million investment in hydrogen solutions [Environmental Leader]

• The Chemours Company, a global chemistry company announced a planned $200 million investment to increase capacity and advance technology for its Nafion ion exchange materials to support the Hydrogen Economy.

EKI Energy launches $125m climate impact fund [BW Disrupt]

• EKI will invest… in a phased manner in this fund with an aim to empower GHG Mitigation projects across the country and internationally. The fund will specifically focus on high-impact community development projects such as clean cooking through the large-scale deployment of energy-efficient improved cook stoves (ICS), access to clean drinking water through water filtration systems and more.

Propeller announces $100 million fund to invest in ocean-climate companies [News Wise]

• Unique partnership with Woods Hole Oceanographic Institution and veteran leadership team deploys vital capital to blue economy ‘narwhals’ at the nexus of ocean innovation, science and technology

Cultiv8, Fidante launch AUD$100m agri-food tech fund [Global Ag Investing]

• The fund will focus on investments centered on capital growth and sustainability, building out a portfolio of 20-30 Seed to Series B capital commitments, which over a recommended nine-year time frame, are anticipated to provide gross returns of 20 percent per annum.

Pathways, Frameworks, Case Studies, Research, Climate Science

Taskforce values nature-based markets at $7 trillion [Green Biz]

• New Taskforce on Nature Markets study argues the emerging sector could be equivalent in size to the world's third largest economy.

Planet Tracker: $7.4tr of global trade dependent on nature [Business Green]

• Roughly 40 per cent of total global trade is dependent on nature, amounting to some $7.4tr of exports each year, according to Planet Tracker.

Wildlife populations plunge 69% since 1970: WWF [Carbon Brief Daily]

• The newswire says that the report includes “data from 32,000 populations of more than 5,000 species of mammals, birds amphibians, reptiles and fish”. It adds: “The report found that the main drivers of wildlife loss are habitat degradation due to development and farming, exploitation, the introduction of invasive species, pollution, climate change and disease.

Investments of $270 trillion needed to meet net-zero targets by 2050, study shows [Reuters]

• Investments of $270 trillion are needed for the planet to meet a climate target of net-zero emissions by 2050, Swiss Re (SRENH.S) said in a study that underscores the daunting challenge of the effort.

Investment in renewable energy needs to quadruple by 2030 [Bloomberg]

• Analysts at BloombergNEF estimate that funding for low-carbon energy sources must rise to $4 for every $1 allocated to fossil fuels.

South African carbon supply shortfall forecast to average 100 mln into 2030s [Carbon Pulse]

Finance for Nature-based Solutions must triple by 2030 [UNFCCC]

• Addressing the Forum on Finance for Nature-Based Solutions organized by the UNFCCC’s Standing Committee of Finance, UN Climate Change Deputy Executive Secretary Ovais Sarmad said: “We face a double crisis of climate change and nature. The two are inextricably linked. The mutual, intertwined destruction grows worse by the day. If nature and climate change are linked, it only stands to reason that nature-based solutions lie at the heart of addressing both.”

Carbon project developers could lose $2.6b due to verification bottlenecks by 2030 [Yahoo Finance]

• Climate tech start-up Thallo released a report that aggregates carbon project developer input and highlights challenges to scaling the voluntary carbon market. The report identifies key bottlenecks including verification delays, limited access to early-stage financing, and inefficiencies in the value chain caused by intermediaries. The report also highlights solutions to scaling the VCM, specifically improved financing through forward models.