Climate Investment Newsletter 11/21 - 11/27

Individual Deals and Market Watch

Astanor Ventures raises $325 million for sustainable food and ag-tech

• Good Harvest Partners I, Astanor’s first institutional fund, will back “entrepreneurs developing scalable solutions to re-align nature, agriculture, and culture,” said cofounder Eric Archambeau.

Tesla’s market value soars to $500bn ahead of S&P 500 debut

• Tesla’s market value has surged over $500bn after a fresh wave of buying ahead of the electric carmaker’s debut on the blue-chip S&P 500 stock index next month.

Shipping industry welcomes IMO verdict on $5 billion fund to advance decarbonisation

• The International Chamber of Shipping (ICS) on Friday (20 November) said the International Maritime Organization (IMO) will give further consideration to an innovative proposal from the global shipping industry to collectively provide USD 5 billion to accelerate R&D to support its decarbonisation.

Natural Order Acquisition Corp. Raises US$230M IPO To Fund Plant-Based Buyouts

• Natural Order Acquisition Corp., a new blank check company targeting plant-based foods, has raised US$230 million in its initial public offering, including the full exercise of the underwriters’ over-allotment option. The company intends to use the capital to fund a business combination of companies working on plant-based foods and other sustainable alternatives to animal-based products.

Lombard Odier launches $400m natural capital fund

• Swiss banking group Lombard Odier has launched a global equity fund focused on natural capital, with approximately $400 million of assets under management.

$150m investment fund launched for municipal green infrastructure projects

• A consortium of financial institutions and not-for-profit organizations has launched a $150 million blended-finance fund to boost investment in mid-sized climate-resilient and low-carbon infrastructure by municipal authorities.

$250bn green bond issuance expected in 2020, says Moody's

• Moody's Investors Service has estimated the green bond issuance could reach $250 billion by the end of 2020, after a record third quarter, although Environmental Finance figures suggest this could still be a conservative forecast.

Arrival, the company creating electric vehicles with its game-changing technologies, to list on NASDAQ through merger with CIIG Merger Corp.

• Arrival, the company creating electric vehicles (“EVs”) with its game-changing technologies, has entered into a definitive business combination agreement with CIIG Merger Corp. (NASDAQ: CIIC); and the newly combined company will be listed on the NASDAQ under the new ticker symbol “ARVL”

Union Square Ventures Plans its First Climate Tech Fund

• Union Square Ventures is raising its first climate-tech focused venture fund, according to people familiar with the situation. The move is an indication that climate tech is gaining new support in the venture industry after largely falling out of favor about a decade ago.

Iberdrola teams up with Nel, Ingeteam on 200-MW-plus green hydrogen project

• Spanish utility Iberdrola SA (BME:IBE) has struck partnerships with Ingeteam and Nel Hydrogen Electrolyser with the aim to deliver a 200-MW-plus green hydrogen project in Spain by 2023.

Macro Commitments

Vodafone commits to net zero carbon emissions by 2040

• Vodafone will slash its global carbon emissions to net zero by 2040, 10 years ahead of its original 2050 target.
• To fulfill this commitment, Vodafone will aim to eliminate carbon emissions from its own activities, as well as from the energy it purchases, by 2030.

Enel to spend 160 billion euros to become green 'super major'

• Europe’s biggest utility Enel will spend 160 billion euros ($190 billion) over the next 10 years to become a green “super major” and make the company carbon-free by 2050.

Irish cabinet approves €108m funding for groundbreaking Bord na Móna bog rehabilitation plan

• The Minister for the Environment, Climate and Communications, Eamon Ryan TD has announced two major funding allocations for the Just Transition programme in the Midlands, designed to assist communities transitioning out of peat harvesting and into a new, green and sustainable economy.

Coal India to invest over $760 million over four years in solar to cut costs

• Coal India Ltd, the world’s largest coal miner, said on Monday it would invest 56.50 billion rupees ($763 million) by March 2024 to build 14 solar projects to help power its mining operations and cut costs.

Morgan Stanley, Pimco Add Weight to Macron Climate Finance Plan

• Morgan Stanley Investment Management and Pacific Investment Management Co. are among 15 asset managers and sovereign wealth funds that pledged support for a French initiative to encourage the world’s largest investors to integrate climate change into their decision-making.

Volvo Group Announces It Has Committed To Science-Based Targets Initiative

• The Volvo Group announced it is taking the next step in adjusting and future-proofing the company in line with the ambitions of the Paris Climate Agreement. The goal is that Volvo Group will be a net-zero emissions company by 2050, at the very latest, the company said. In order to be transparent on its progress, the company is now committing to the Science-Based Targets initiative.

Volkswagen Accelerates Investment in Electric Cars as It Races to Overtake Tesla

• Volkswagen AG plans to invest around $86 billion in the development of electric vehicles and other new technologies over the next five years, as the world’s largest auto maker races to overtake Tesla Inc. as the leading maker of electric cars.

Equinor to invest $8bn in Britain's Dogger Bank giant wind project

• British utility SSE and Norwegian oil company Equinor have agreed to invest 6 billion pounds ($8.03 billion) to construct the first two phases of the Dogger Bank offshore wind power project, the two companies said on Thursday.
• The project will become the world’s largest offshore wind farm, helping both companies to achieve their climate targets.

Repsol to invest €5.5bn in low carbon generation

• Repsol is planning to spend over €5bn on renewables and low carbon generation between 2021 and 2025.
• The proposed €5.5bn investment is around 30% of a larger €18.3bn commitment in the period, which forms part of the Spanish oil and gas producer’s strategic plan, to “accelerate the energy transition and ensuring return and the highest value for shareholders”.

Frameworks and Case Studies

EU publishes first sets of Taxonomy screening criteria

• The European Commission has published the first two sets of technical screening criteria for the EU Taxonomy for sustainable activities, described as an “important step” for the closely-watched green policy instrument.

Swiss Finma launches climate disclosure consultation

• The Swiss Financial Market Supervisory Authority (Finma) has launched a climate disclosure consultation for insurers and banks.
• Finma said financial institutions have until now displayed "varying levels of transparency" regarding climate-related financial risks. The regulator said it is therefore specifying the disclosure requirements of these risks for large financial market players.

Regional green economy shift valued at $1 trillion every year by 2030

• A shift to the green economy by Southeast Asia is projected to be worth about $1 trillion a year by 2030, Bain & Co. said in a report.
• The valuation takes into account the emergence of new products and sectors related to sustainable production and consumption as well as savings from the efficient use of resources, Bain said in its Insights report.

Swiss schemes can impact climate change with VC investing, says SSF

• Swiss pension funds can contribute to a positive impact on climate change by investing in start-ups through early-stage venture capital (VC) funds, according to a report by association Swiss Sustainable Finance (SSF).