Climate Investment Newsletter 11/7 - 11/13

Individual Deals and Market Watch

European e-scooter leader startup Tier raises $250m

• German micro-mobility startup Tier announced on Tuesday that it has raised $250m (£190m) in Series C funding to accelerate expansion of its fleets of electric scooters.

$5tr investor alliance calls for companies to ditch thermal coal

• The Net-Zero Asset Owner Alliance, which formed in 2019 at the Climate Action Summit in New York, has today warned companies that failure to respond to its position on thermal coal could result in divestment

'Shielding our customers': Scottish Widows announces £440m divestment from carbon-intensive companies

• Pensions and insurance giant Scottish Widows today committed to divest almost half a billion pounds from companies that have failed to meet its environmental, social, and governance (ESG) standards, while warning that it will offload more assets in the future if companies do not act to improve the sustainability of their business practices.

UK Government issues first ever Sovereign Green Bond

• Chancellor of the Exchequer, Rishi Sunak, has announced the UK Government will be issuing the UK’s first ever Sovereign Green Bond, becoming the first country in the world to make TCFD-aligned disclosures mandatory.

JP Morgan AM launches carbon transition global equity ETF in Europe

• The sustainable ETF will offer core exposure to global equities with a low tracking error, compared to the MSCI World Index, and have a meaningful reduction in carbon intensity.

World’s Top Wind Turbine Maker Ups the Stakes in Offshore Race

• Vestas Wind Systems A/S, the world’s biggest wind turbine manufacturer, will buy out its offshore joint venture partner in an all-share deal that looks to take advantage of an expanding industry at the heart of the energy transition.

Brookfield expects impact strategy to grow to $100bn

• The firm’s Global Transition Fund will invest in assets that will move the economy towards net-zero, including renewables, industrial businesses and infrastructure, chief executive Bruce Flatt said on the firm’s Q3 2020 results call.

Macro Commitments

Petronas Sets Net Zero Emissions Target

• Malaysian oil giant Petronas has announced its plan to achieve net-zero carbon emissions by 2050.

Carney Calls Net-Zero Greenhouse Ambition ‘Greatest Commercial Opportunity’

• Mark Carney is calling on banks, insurers and fund managers to play their part in “re-engineering” the global economy towards net-zero greenhouse gas emissions and says there’ll be great rewards from doing so.

HKMA joins new alliance on green financing as US$29 trillion in opportunities expected over next decade

• The Hong Kong Monetary Authority (HKMA) is teaming up with the International Finance Corporation (IFC) to help commercial banks address climate change, as it seeks to cement the city’s place as a hub for green financing as US$29 trillion in green and climate investment opportunities are expected globally over the next decade.

TD Bank targets net zero in operations and financing

• TD Bank announced Nov. 9 that it is committed to achieving net zero emissions in its operations and financing activities by 2050.

PKA, PenSam, Storebrand launch €4bn energy transition fund

• The fund is to be run by AIP Management, the alternatives joint venture belonging to Danish pension funds PKA and PenSam, with Norway’s Storebrand coming in for the first time as co-investor as well as co-owner of the alternatives management operation.
• Financial group Storebrand said the investment was the beginning of its expansion into infrastructure investment.

EIB approves €1 trillion green investment plan to become ‘climate bank’

• European governments have approved a roadmap to turn the European Investment Bank (EIB) into a “climate bank” with a €1 trillion green investment package to be spent by 2030.

New partnership to unlock €220 million for Egypt’s climate fight

• The European Bank for Reconstruction and Development (EBRD) has partnered with the European Union and the Green Finance Fund (GCF) to boost the private sector’s climate action in Egypt.

Frameworks and Case Studies

Germany requires $130bn in grid investments to meet 2050 climate targets

• A new study released by RWTH Aachen University and Frontier Economics quantifies the economic value of energy networks and how the modernisation of grid networks will help German to meet its 2050 climate targets.

First Global Survey of Green Banks Finds Rapid Growth in their Numbers and Importance in Low-Carbon Finance

• State of Green Banks 2020 report released by Rocky Mountain Institute, Green Finance Institute and NRDC (Natural Resources Defense Council); Green banks have invested over $24 billion in low-carbon technologies to date; 25 countries are actively exploring new green banks

Climate finance for developing countries on rise: OECD

• Lending to developing countries to reduce the effects of climate change, also known as climate financing, expanded to $78.9 billion in 2018 -- up by 11% from the year before, according to a report on Friday.
• Asia received largest share of climate finance at 43% in 2016-2018, followed by Africa at 25%, Americas at 17%, says report

Mercer launches new climate change solution to help investors transition to a 1.5°C climate scenario

• Mercer, a global leader in redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being, today announced the launch of climate transition analytics and advice for institutional investors who want to transition to a 1.5°C scenario of global warming as outlined in the Paris Agreement.

Measuring Portfolio Alignment: Assessing the position of companies and portfolios on the path to net zero

• As an increasing number of countries legislate for net zero, all sectors of the economy will need to adapt.
• For investors and lenders, this will mean identifying risks and opportunities in the transition to a net zero economy. It will also mean demonstrating to stakeholders the extent to which their investments are aligned to climate targets. This will require common, comparable metrics that meet the following criteria…

Water industry launches world’s first sector-wide plan to deliver net zero carbon emissions by 2030

• Water companies have unveiled a ground-breaking plan to deliver a net zero water supply for customers by 2030 in the world’s first sector-wide commitment of its kind.