Blue Economy Moves into the Spotlight | 2/1 - 2/14
Your Newsletter at a Glance
If you were to go back to the first edition of this newsletter, almost three years ago, you would find only a handful of deals (mainly in energy and transportation).
Accordingly, we are proud to show-off the bi-weekly compendium, and definitive source for nature-based solutions (NbS) deal flow, that this newsletter has become.
Throughout this journey we have been delighted to see that the thousands of people subscribing and continuing to read this newsletter are the professionals driving the sustainable transition.
The individuals orchestrating the deals we cover each week.
After talking with many of you, it has been made clear there is an appetite for an abridged version of the newsletter.
Without further ado, here is your snapshot of the most interesting deals in climate finance:
—————————————————————————————————————
Market Watch
EIB raises $5bn from record-breaking green bond [Environmental Finance]
- The EIB said the 10-year climate awareness bond (CAB) attracted an order book in excess of $19.6 billion from over 190 investors. The investment bank said this was the largest overbook secured by a global benchmark deal from EIB, and it also believed to be the largest from a supranational green bond to date.
Solar hardware maker Nextracker scores $638M in 2023’s biggest IPO so far [Canary Media]
- Solar trackers like Nextracker’s optimize power plant output for utility-scale project developers and builders by enabling solar panels to follow the sun as it moves across the sky. Nextracker’s product design relies on a more distributed architecture that allows the company to more fully take advantage of price drops in motor and control technology.
FSD Africa targets to back $400 million of green bonds this year [FSD Africa]
- FSD Africa is in talks with potential green-bond issuers across the continent to raise at least $400 million for climate-linked projects this year.
Research
$5trn investor coalition creates sovereign debt climate framework [ESG Clarity]
- A coalition of asset managers and owners representing $5trn in assets is launching a framework assessing the low-carbon transition progress of governments.
—————————————————————————————————————
[NbS] Market Watch
Mirova plans new $500mln agro-forestry fund [Environmental Finance]
- The Paris-based impact specialist launched the LDN fund, a blended finance vehicle that invests in land restoration projects, at the Paris climate summit in 2015, but it didn't reach a final close until July 2021.
- With this backing, the UK-based impact fund aims to grow its portfolio to 20-25 businesses within three years. The company has already invested in four companies, including Tilabras, SyAqua, AION, and MITO.
[NbS] Research
Alternative protein processing equipment market to reach $2.2 billion by 2030 [yahoo]
- According to a new market research report titled, 'Alternative Protein Processing Equipment Market’, the alternative protein processing equipment market is projected to reach $2.2 billion by 2030, at a CAGR of 5.2% from 2023 to 2030.
Author’s Note
Closing out 2022 there seemed to be an uptick in reduced food waste and blue economy deals. Thus far into the new year that trend has held. I will be keeping a special eye on these two categories as well as on Measurement, Reporting, and Verification deal flow.
—————————————————————————————————————
[NEW] The Nature-based Solutions Market
Starting in 2023 Capital for Climate will be providing an in-depth, bi-monthly, look into all things NbS.
Our detailed review of individual deals, macro commitments, research, and global frameworks surrounding NbS investment can be found towards the end of the newsletter.
—————————————————————————————————————
Individual Deals and Market Watch
Saudi PIF raises $5.5bn from second green bond [Environmental Finance]
- The $620 billion Saudi Arabia sovereign wealth fund has raised $5.5 billion from its second significantly oversubscribed green bond, four months after making its controversial debut in the sustainable bond market.
EIB raises $5bn from record-breaking green bond [Environmental Finance]
- The EIB said the 10-year climate awareness bond (CAB) attracted an orderbook in excess of $19.6 billion from over 190 investors. The investment bank said this was the largest overbook secured by a global benchmark deal from EIB, and it also believed to be the largest from a supranational green bond to date.
UK fund manager Osmosis wins $4.5bn green transition investment mandate [Beam Start - FT]
- The dual-tranche deal includes a €750 million eight-year tranche which is tied to a target related to its EU Taxonomy-aligned capital expenditure. The firm is targeting to invest at least 80% of its capital expenditure in EU Taxonomy-aligned projects between 2023 and 2025 as well as reducing its Scope 1 greenhouse gas (GHG) emissions intensity to 130 grammes of carbon dioxide equivalent per kilowatt-hour by the end of 2025.
IKEA stores owner buys stake in $1.4 bln Australian wind farm [Reuters]
- Ingka Group, the owner of most IKEA stores globally, will take a 15% stake in a A$2 billion ($1.4 billion) wind farm in its first renewable-energy investment in Australia as it looks to expand in the Asia-Pacific region, the Swedish firm said.
Verizon completes final allocation of its fourth $1 billion green bond [Verizon]
- Verizon fully allocated the net proceeds of its fourth green bond entirely to virtual power purchase agreements (VPPAs). These VPPAs are for an aggregate of 850 megawatts (MW) of new renewable energy generating capacity across seven states, of which about 71 percent is wind energy generating capacity and 29 percent is solar energy generating capacity.
Comcast issues $1 billion green bond to fund clean energy, infrastructure projects [Benzinga]
- Proceeds from the green bond may be allocated to five investment areas, all of which contribute to Comcast's efforts to reduce its carbon footprint, including renewable energy, energy efficiency, green buildings, campuses, communities and cities, clean transportation, and circular economy adapted products, production technologies and processes.
Solar hardware maker Nextracker scores $638M in 2023’s biggest IPO so far [Canary Media]
- Solar trackers like Nextracker’s optimize power plant output for utility-scale project developers and builders by enabling solar panels to follow the sun as it moves across the sky. Nextracker’s product design relies on a more distributed architecture that allows the company to more fully take advantage of price drops in motor and control technology.
Enel's solar panel maker 3Sun inks $600m loan to expand to 3 GW [Renewables Now]
Investors pour $535 million into Powerfield's solar park campaign [Tech EU]
- Powerfield, a Netherlands solar company that develops, builds and manages "virtual power stations", connecting solar farms to external storage and EV charging, has clinched a €500 million structured equity and portfolio financing (source - Silicon Canals).
Four West African nations get $311 million from World Bank for renewables [Reuters]
- The funds will finance around 106 megawatts (MW) of solar power generation capacity with battery energy and storage systems, and 41 MW expansion of hydroelectric capacity.
Battery darling Our Next Energy lands massive $300m series B to build gigafactory [Tech Crunch]
- Battery startup Our Next Energy announced this morning that it closed a massive $300 million Series B in an effort to get its $1.6 billion gigafactory up and running.
Enlight Renewable Energy raises USD 252m in US IPO [Renewables Now]
- Israeli renewables developer Enlight Renewable Energy Ltd (TLV:ENLT) has raised USD 252 million (EUR 233.9m) in its initial public offering in the US from the sale of some 14 million ordinary shares.
Pristine Sun gets USD-250m cash boost for US solar projects [Environmental Finance]
- US renewables developer Pristine Sun Corporation has secured a USD-250-million (EUR 232.9m) capital injection to support its expansion in the states of Texas, California, and Louisiana, and to seek additional projects in the continental US.
Planet A closes $172m for science-based climate investing [Sifted]
- And now adding to the pot is Berlin-based Planet A, which has just closed its first fund at €160m, from an intriguing roster of LPs including BMW, the Danish pension fund and the founders of HelloFresh and Zalando.
Avaana Capital hits first close of $150-mn climate and sustainability fund [Business Today]
- Avaana Climate and Sustainability Fund invests in thematic areas of energy and resource management, mobility and supply chains, and sustainable agriculture and food systems. Since 2018, Avaana has backed over 20 early-stage start-ups. Its portfolio includes FarMart, Ninety One, Praman (Intello Labs), CoverStack, Eggoz, TurnO, Terra.do, and Praan.
UK Government invests $138m to unlock zero emission ‘guilt-free’ flights [Climate Action]
- UK Government announces investment of £113 million for cutting edge new technologies that could enable electric flying taxis and hydrogen powered aircraft to take to the skies.
Nine hydrogen valley projects get $113m of EU funding [Renewables Now]
- The EU’s Clean Hydrogen Partnership this week announced EUR 105.4 million (USD 115.8m) in funding for nine hydrogen valleys across Europe.
- Proceeds from the proposed local-currency notes will be used to finance or repay eligible projects under the city’s green bond framework, Fitch Ratings said in a note. A blockchain-underpinned technological platform is involved in relation to the issuance of the securities, it added.
Macro Commitments
EverWind wins enviro nod for USD-4.5bn Nova Scotia green H2 hub [Renewables Now]
- Canadian firm EverWind Fuels Company has won environmental approval for the initial phase of a CAD-6-billion (USD 4.5bn/EUR 4.2bn) project to produce green hydrogen and ammonia in Nova Scotia that will be supplying German energy majors E.on SE and Uniper SE.
India pledges $4 billion for green energy to cut carbon emissions [Nature]
- India’s plan to transition its economy towards green-energy production was a strong focus of this year’s national budget, with the government pledging 350 billion rupees (US$4.25 billion) to aid the transition. Climate-policy researchers say the funding is a welcome first step but that it needs to be followed by long-term commitments.
EC okays $2.2bn of state aid for French floating wind project [Environmental Finance]
- The European Commission (EC) said on Monday it has approved, under EU State aid rules, a EUR-2.08-billion (USD 2.23bn) measure in France to support a floating offshore wind farm with an expected capacity of 230 MW to 270 MW.
- Redwood Materials, founded by ex-Tesla CTO JB Straubel in 2017, takes end-of-life electric vehicle batteries and scrap from car factories, and turns it into raw materials and components to make new battery cells.
GM to invest $650 million in a lithium company to support its electric vehicle business [CNBC]
- When the lithium is extracted from the Thacker Pass mine, which is the largest source of lithium identified in the U.S., and processed it will provide enough for GM to make as many as 1 million electric vehicles per year, the companies said.
Mirova plans $500m blended finance emerging markets renewables fund [Environmental Finance]
- Impact specialist Mirova said it expects "very soon" to reach a first close on a blended finance fund that will invest in renewable energy in Africa, Asia and Latin America.
FSD Africa targets to back $400 million of green bonds this year [FSD Africa]
- FSD Africa is in talks with potential green-bond issuers across the continent to raise at least $400 million for climate-linked projects this year.
Pathways, Frameworks, Case Studies, Research, Climate Science
India needs $10 trillion till 2070 for energy transition at G20 meeting [Business Standard]
- India will need a total $10 trillion till 2070 for energy transition, top officials stressed at the first meeting of the G20 Committee on Energy Transitions in India.
The SBTi’s New Interim 1.5°C Aviation Pathway [SBTi]
- The Science Based Targets initiative (SBTi) has released a new technical report detailing an interim pathway for aviation companies to set 1.5°C-aligned targets.
Global carbon markets value hit record $909 bln last year [Reuters]
- The value of traded global markets for carbon dioxide (CO2) permits reached a record 850 billion euros ($909 billion) last year, analysts at Refinitiv said.
Less than 1% of businesses have credible climate transition plans, CDP warns [Edie]
- CDP has stated that less than half a percent of 18,600 companies that disclosed climate information through its platform last year have a credible climate transition plan to net-zero by mid-century.
$5trn investor coalition creates sovereign debt climate framework [ESG Clarity]
- A coalition of asset managers and owners representing $5trn in assets is launching a framework assessing the low-carbon transition progress of governments.
Voluntary carbon market has 'notable concern in quality', finds WWF tool [Environmental Finance]
- The initiative found that most methodologies it assessed either overestimate emissions reductions, or discovered “large uncertainty”. Also, renewable energy projects score poorly on additionality – specifically solar PV and onshore wind.
- The Lifestyles for the Environment (LiFE) initiative proposed by India for behavioural change and sustainable consumption can, if adopted worldwide, reduce more than 2 billion tonnes of carbon dioxide emissions in 2030.
European Investment Bank provided record €17bn for energy transition in 2022 [edie]
- The European Investment Bank (EIB) Group has confirmed that it signed a record €17bn in new financing for renewable energy, energy efficiency, energy storage and grid infrastructure in 2022.
Renewables account for 92% of Brazil's power produciton in 2022 [Renewables Now]
[NEW] The Nature-based Solutions Market
Individual Deals, Funds, and Commitments
Japanese conglomerate forms US forest carbon venture as part of $780 mln investment [Carbon Pulse]
Mirova plans new $500mln agro-forestry fund [Environmental Finance]
- The Paris-based impact specialist launched the LDN fund, a blended finance vehicle that invests in land restoration projects, at the Paris climate summit in 2015, but it didn't reach a final close until July 2021.
- With this backing, the UK-based impact fund aims to grow its portfolio to 20-25 businesses within three years. The company has already invested in four companies, including Tilabras, SyAqua, AION, and MITO.
SunOpta opens $125m ‘Mega Facility’ in Texas to double plant-based milk business [Vegconomist]
- SunOpta, a leading producer of healthy foods and beverages, announces the opening of a $125M plant-based beverage production facility in Midlothian, Texas. According to SunOpta, the new ‘mega facility’ will create 175 jobs and strongly expand the company’s manufacturing capabilities, allowing it to double its business by 2025 compared to 2020.
United Bankers launches new ($107 million) forestry fund [Lesprom]
- United Bankers’ UB Forest Industry Green Growth Fund I LP (“UB FIGG” or “the Fund”) investing in sustainable and resource efficient forest and bio-based industries has raised Euro 100 million in investment commitments.
NIFA announces $70m investment to enhance sustainable agricultural systems [USDA]
- The U.S. Department of Agriculture (USDA) National Institute of Food and Agriculture (NIFA) announced an investment of $70 million in sustainable agricultural projects that integrate research, education, and Extension efforts. The goal is to establish robust, resilient, and climate-smart food and agricultural systems.
Canada funds $69.5m to protect oceans in developing nations [Mirage News]
- As part of International Development Week 2023, the Honourable Harjit S. Sajjan, Minister of International Development and Minister responsible for the Pacific Economic Development Agency of Canada, announced a total of $69.5 million in funding for climate finance to support 4 nature-based-solutions projects that will help marginalized communities adapt to climate change, strengthen biodiversity and reduce poverty.
Insurer invests $46 mln in UK forest restoration scheme [Carbon Pulse]
- Ethiopia has signed a landmark agreement with the World Bank’s BioCarbon Fund Initiative for Sustainable Forest Landscapes (ISFL) that rewards community efforts to reduce carbon emissions by tackling deforestation and land and forest degradation. [World Bank]
Aviva awards $38m of funding to help restore Britain's lost rainforests [Business Green]
- Project partner Wildlife Trusts commends Aviva for its 'far sighted approach' to nature-based solutions, as insurer pursues net reduction in carbon emissions from the mid-2030s onwards.
- The Regenerative Seascapes for People, Climate, and Nature project will be implemented in coastal and marine regions of the West Indian Ocean, in Kenya, Tanzania, Mozambique, Madagascar and the Comoros. The biodiversity degradation and fish stock depletion caused in large part by the climate crisis are major challenges for these communities. The project will directly benefit 350,000 people, including 225,000 women and 12,500 people in vulnerable and marginalized situations.
Canada to pump extra $16mln in blue economy programme [The Star]
- This is in turn expected to support Kenyan institutions in delivering skills training programmes that meet international standards and addresses the needs of the blue economy.
Canada’s New School Foods raises $12m to scale whole-cut, raw plant-based salmon [Vegconomist]
- Plant-based seafood producer New School Foods announces it has raised $12M in seed funding for its proprietary, scalable technology that can produce “raw” whole-cut fish alternatives. Beginning in 2023, the company will launch its whole-cut salmon through a chef-only pilot program in North America.
- An LSU AgCenter scientist has been awarded a $10 million grant from the U.S. Department of Agriculture National Institute of Food and Agriculture to improve sustainability and profitability of rice farming through research innovations that advance climate-resilient crops.
- The U.S. Department of Agriculture has awarded a $10 million grant to a collaborative research team from the University of Maine, the University of Georgia and lead-site Purdue University to help landowners and stakeholders better adapt their forests to increasingly complicated economic and climate conditions in the eastern United States.
- Launched in the spring of 2022, The Weston Family Soil Health Initiative, seeks to expand the adoption of ecologically based beneficial management practices (BMPs) including cover cropping, nutrient management (4R principles) and crop diversification/rotation that increase soil organic matter to improve biodiversity and resiliency on agricultural lands across Canada.
Rebellyous Foods raises $9.5 million equity round [Food Business News]
- Rebellyous Foods, a food manufacturing technology company, has raised a $9.5 million equity round to scale production of plant-based chicken alternatives.
USDA Invests $9.4 Million in Compost and Food Waste Reduction Projects [USDA]
- The U.S. Department of Agriculture (USDA) is investing more than $9.4 million in 45 cooperative agreements that support innovative, scalable waste management plans to reduce and divert food waste from landfills.
- The Farmersville, CA-based company addresses the 108B pounds of food wasted in the United States annually
- Fable Food Co, the Australian meat alternative startup, has raised $8.5 million in Series A funding led by K3 Ventures, a Singapore-based venture capital firm that’s backed leading food tech companies ByteDance and Grab.
- Natural England announced fund for a wave of projects that aim to trial the most effective ways of capturing CO2 and bolstering climate resilience using nature-based solutions.
Nature intelligence firm eyes expansion after closing £2.5-mln seed round [Carbon Pulse]
- The venture, launched in 2018 and founded by Kathy Willis, a professor of biodiversity at Oxford University, has been developing a suite of proprietary models to measure soil health, biodiversity, and carbon.
$2.2 million grant for Sydney alt protein centre [Food & Drink]
- The centre will also carry out R&D on alternative protein production methods, including cellular engineering, precision fermentation, vertical farming, extraction, and texturisation, all while training researchers and practitioners in the food and beverage industry.
Australia commits $2.1 mln to Indian Ocean marine park conservation projects [Carbon Pulse]
- The Australian government has committed $2.1 million in grants to projects in the Christmas Island and Cocos Islands marine parks, however scientists warn that the level of protection in the country’s marine parks is still relatively low.
- Minister of Agriculture Damien O’Connor announced $2 million will be spent over six years on the New Zealand-first project. Led by Hawke’s Bay Future Farming Charitable Trust in partnership with LandWISE, the project aims to build evidence on the application and effectiveness of regenerative farming in arable and intensive field cropping.
Meala FoodTech secures US$1.9M in pre-seed round [AgReads]
- Start-up Meala FoodTech, Ltd., the developer of a functional protein platform, announces the close of USD1.9M in pre-seed investment. The round was led by The Kitchen FoodTech Hub, part of The Strauss-Group and DSM Venturing (the corporate venture arm of the Dutch multinational Royal DSM).
Federal Funding: $1.8M for habitat restoration [The Chronicle]
- 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.
- Maya Climate, a Berlin-based global project financing platform for natural capital projects, has secured €1.2M in a pre-seed funding round led by Germany’s High-Tech Gründerfonds (HTGF).
ÄIO raises $1.07m to replace palm oil with fats made from sawdust [Vegconomist]
- The process uses a microbe called the “red bug” to ferment the industrial byproducts, converting them into nutrient-rich fats. These could replace commonly used products such as palm and coconut oil, which often have a hugely detrimental impact on the environment. The fats will be suitable for a range of applications, including foods such as plant-based meats along with cosmetics and household products.
Moroccan agritech Sand to Green raises $1 million Seed round [Wamda]
- Sand-to-Green, a Moroccan startup, has just raised funds from multiple investors to deploy its solutions around the kingdom. This $1 million seed funding also signals the participation of different Business Angels and two VC funds, specifically the Norwegian Katapult and the pre-seed fund Catalyst, into the Sand to Green capital.
Projects, Frameworks, and Research
Alternative protein processing equipment market to reach $2.2 billion by 2030 [yahoo]
- According to a new market research report titled, 'Alternative Protein Processing Equipment Market’, the alternative protein processing equipment market is projected to reach $2.2 billion by 2030, at a CAGR of 5.2% from 2023 to 2030.
- A film produced by IUCN on Nature-based Solutions (NbS) in the Meghna river basin showcases the various ecosystem services it provides, and highlights community- and government-led efforts to address climate, water and food security issues through its application.
- Food waste management is the process of reducing and preventing the generation of food waste and handling the food waste that is generated in a sustainable manner. It involves a range of activities, such as reducing food waste at the source, composting organic waste, and recovering edible food that would otherwise go to waste for distribution to those in need.
Updated guide gives practical advice for buyers of tropical forest carbon credits [Mongabay]
- An updated guide written by eight conservation and Indigenous organizations offers a detailed path forward for companies that want to compensate for their carbon emissions in addition to decarbonizing their supply chains.
- Here, we integrated results from direct field measurements of over 370 restoration sites around the world to show that mangrove reforestation (reestablishing mangroves where they previously colonized) had a greater carbon storage potential per hectare than afforestation (establishing mangroves where not previously mangrove).
Global Biodiversity Framework provides “clear call to action” to financials on nature [Carbon Pulse]
Major investor sets out biodiversity, climate expectations for portfolio firms [Carbon Pulse]
- Aviva Investors has named nature loss and climate change as two of its three main focus areas for 2023, and has written a letter to the 1,600 companies it has invested in, outlining the actions it expects them to take on these issues.
- Now, a study published in the scientific journal PNAS Nexus suggests that after Indigenous communities obtain legal title to their territories, the rate of deforestation significantly declines.
- According to Polaris Market Research report, the global regenerative agriculture market size & share expected to generate revenue of USD 23.84 Billion by 2030 and estimated to be valued at USD 7.74 Billion in 2021, at a compound annual growth rate (CAGR) of 14.4% from 2022 to 2030.
WEF and Indonesia join hand to boost blue carbon credits [Carbon Credits.com]
- The deal, signed in Davos, Switzerland, will help support Indonesia’s national road map on blue carbon. This, in turn, will drive blue carbon credits financing to promote ocean restoration and conservation efforts.
Danish foundation launches biodiversity impact investment initiative [Carbon Pulse]
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.
Click below for the report!
Report: The Nature Tech Market. Necessary, Emergent, Dynamic
Check out our NbS Investment Platform Here!
What’s new in climate investment?
More NewsSubscribe to Our Newsletter
.png)
