Climate Investment Newsletter 3/28 - 4/10
Individual Deals and Market Watch
Bank of America mobilized and deployed $250 billion in sustainable finance capital in 2021 [Cision]
- Company is accelerating its capital mobilization and deployment as part of its $1.5 trillion by 2030 sustainable finance goal that is committed to environmental transition and inclusive social development
- New York City Comptroller Brad Lander and trustees of the New York City Retirement Systems announced that investments in climate solutions have now reached more than $7 billion across all systems and asset classes as of the end of 2021, well exceeding the $4 billion goal set by three of the funds in 2018. These investments in companies that are helping to facilitate a just transition to a low carbon economy build on the $4 billion divestment by three of the five funds from companies that own fossil fuel reserves, which is expected to be completed later this year.
Vonovia’s €2.5 billion green and social bonds offering [Global Legal Chronicle]
- Vonovia SE issued two social bonds and one green bond with an aggregate principal amount of €2.5 billion.
Statkraft bags EUR 1.3bn of sustainability-linked debt [Renewables Now]
- Norwegian state-owned renewables company Statkraft A/S has secured a EUR-1.3-billion (USD 1.45bn) revolving credit facility linked to the achievement of its sustainability goals.
- The world's digital infrastructure company, announced that it priced $1.2 billion principal amount of 3.90% senior green notes due 2032 (the "green bonds") in its fourth green bond offering. The green bonds will be used to help advance the company's longstanding commitment to sustainability leadership and reducing its environmental impact. The offering is expected to close on April 5, 2022, subject to the satisfaction of customary closing conditions.
Pension Protection Fund increases investment in forestry to £1bn [Pensions Age]
- Forestry is part of the PPF’s responsible investment strategy, and the lifeboat said its £1bn investment was “just one part” of commitment to making a difference while protecting the benefits of those who rely on the funds.
ACWA Power signs USD 900m EPC deal for Neom green hydrogen project [Renewables Now]
- ACWA Power (TADAWUL:2082) and its partners are moving on with the realisation of a huge green hydrogen-to-ammonia complex on Saudi Arabia's Red Sea coast with the signing of an engineering, procurement and construction (EPC) contract worth USD 900 million (EUR 817.8m).
Aon invests €825m in new UBS climate transition fund [City Wire Selector]
- The new strategy will invest in companies that are best-placed for the transition to a low-carbon economy.
Greenko raises $750 m from bond sale to create energy storage facility [Saur Energy International]
- Greenko secured pricing of 5.50 per cent for its USD 750 million green bond issuance after starting the roadshows.
SolarEdge Technologies raises $678.5 million [Mercom]
- SolarEdge Technologies, a provider of end-to-end solar power optimization PV monitoring solutions, completed underwritten public offering of 2,300,000 shares of common stock at $295.00 per share, raising $678.5 million (before deduction for the underwriters’ discount and other offering expenses).
Climeworks’ $650m raise signals carbon capture’s mainstream arrival [Sifted.eu]
- Climeworks, a Swiss carbon dioxide removal startup, has raised a $650m round — the largest investment ever into a carbon capture startup.
- The round was led by Partners Group and GIC alongside a long list of other investors, including Baillie Gifford, M&G and Swiss Re. It brings the total Climeworks has raised to over $800m.
- Mitsui will take a long-term active role in the growth of the Company, alongside Aker Horizons, which will own 54.4 percent of Mainstream following the transaction.
FRA to offer green bonds worth $400m for an international institution [Daily News Egypt]
- Mohamed Omran — the Executive Chairperson of the Financial Regulatory Authority (FRA) of Egypt — revealed that the Financial Supervisory Authority is working to offer green bonds for an unnamed international institution with a value of $400m.
Evok Innovations announces first close of $300 million USD cleantech fund [Evok]
- Fund II includes significant participation by Export Development Canada (EDC), Royal Bank of Canada (RBC) and The Toronto-Dominion Bank (TD), alongside returning investors Suncor and Cenovus.
- The fund will target early-stage investments across North America in key industrial decarbonization verticals, including carbon capture use and storage (CCUS), low-carbon fuels, clean energy and grid innovations, mobility, advanced materials and circularity.
Greencoat Renewables collects EUR 281.5m in oversubscribed placing [Renewables Now]
- Greencoat Renewables Plc (LON:GRP) has raised EUR 281.5 million (USD 312.5m) gross in an oversubscribed placing to help it pursue a pipeline of near-term investment opportunities that it is considering in Ireland and continental European markets.
547 Energy invests USD 250m in Irish renewables developer Aer Soleir [Renewables Now]
- The Quantum Energy Partners-backed clean energy investment platform, 547 Energy International LLC, has made a USD-250-million (EUR 228m) equity funding commitment to Irish renewable energy developer Aer Soleir.
Endesa inks new EUR-250m sustainability-linked loan with EIB [Renewables Now]
- Spanish utility group Endesa SA (BME:ELE) said that it has secured a EUR-250-million (USD 275.1m) sustainability-linked loan from the European Investment Bank (EIB) to continue growing its renewables fleet in Spain.
GEF Capital raises $200 million for India-centric climate fund [Hindu Business Online]
- Global sustainability private equity (PE) investor GEF Capital Partners (GEF) has successfully raised nearly $200 million from global investors and completed the final closure of its South Asia Growth Fund II (SAGF II). SAGF II is a growth equity fund targeting climate-themed businesses in South Asia with a focus on India.
Deepki grabs $166 million to help real estate investors reduce carbon emissions [Tech Crunch]
- French startup Deepki has raised a $166 million Series C funding round (€150 million). The company is building a software-as-a-service platform for the real estate industry. It’s a monitoring and analytics product that helps you take better decisions.
Estonian wind project targets EUR 150m in funding via green bond issue [Renewables Now]
- A shovel-ready wind project in Estonia with a planned capacity of 100 MW is launching a EUR-150-million (USD 164m) green bond to secure funding for its construction.
Deepki closes record €150m climate tech fundraise [Place Tech]
- The €150m Series C round of funding was co-led by One Peak and Highland Europe, two London-based growth equity firms. Other investors include Bpifrance and Revaia, as well as existing investors Hi Inov and Statkraft Ventures.
H2 Mobility raises $122 million to build hydrogen fueling stations in Europe [Impact Alpha]
- Hy24, a joint venture between private equity investor Ardian and green hydrogen investor FiveT Hydrogen, led the round with a $77.6 million investment. FiveT nearly a year ago raised €288.4 million to finance green hydrogen infrastructure projects.
TRIG to pay EUR 117m for minority in Repsol's largest solar park in Spain [Renewables Now]
- The Renewables Infrastructure Group (LON:TRIG), an investment firm managed by InfraRed Capital Partners, has agreed to buy a 49% stake in the largest solar plant in Spain owned by multi-energy group Repsol SA (BME:REP) for EUR 117 million (USD 130m).
Sweep closes Series B with $73 million [Tech Crunch]
- Sweep was founded in 2020, then raised a $22 million Series A round a few months ago, followed by a $73 million Series B round announced April 5th, 2022. The company swept in with a platform for carbon emissions management. It found a sweet spot in the world of large corporates, which were foaming at the mouth to announce that they were ready to save the planet, but then were left scratching their heads, unclear on how to actually implement, track and report on their progress.
ARC Canada closes $30 million Series A financing [Business Wire]
- ARC Clean Energy Canada (ARC Canada), an advanced small modular reactor (aSMR) technology provider, announced the completion of its Series A financing in the amount of $30 million (CAD) from private sector investment and the Province of New Brunswick. This financing will progress the deployment of Canada’s first commercial grid-scale aSMR at the Point Lepreau Nuclear Generating Station (PLNGS) site, owned by the provincial utility, New Brunswick Power (NB Power). It also sets the stage for further milestone achievements which will unlock additional funding from the province.
Macro Commitments
Taiwan vows $32 billion clean energy spree as it lags on targets [Bloomberg Quint]
- The government and state-owned companies plan to spend about NT$900 billion ($32 billion) between 2022 and 2030 on renewable technologies, grid infrastructure and energy storage, according to a report posted on the National Development Council’s website. The report lays out a road map for the island to hit net-zero emissions by 2050, a goal set by President Tsai Ing-wen last year.
Ottawa commits $9.1B to hit greenhouse gas target by 2030 [The Star]
- The federal government has unveiled its new road map to slash greenhouse gas emissions over the next decade, charting more than $9 billion in new spending on climate initiatives and a vision to reverse and drive down rising carbon pollution from Canada’s oil and gas sector.
Spain's Cepsa to spend $8 bln by 2030 on green shift [Reuters]
- Spanish oil and gas group Cepsa will spend 7-8 billion euros ($7.8-8.9 billion) on shifting its business to low-carbon energy sources by 2030, in line with a fossil fuel industry under pressure to limit its contribution to climate change.
EU to raise 6 billion euros from new 20-year green bond [WTVB]
- (Reuters) – The European Union will raise 6 billion euros from the sale of a new, 20-year green bond, according to memos from two lead managers seen by Reuters.
Panasonic to plough $5b into electronic vehicle batteries and supply chain software [ZD Net]
- Panasonic has outlined the group will invest a total of ¥600 billion, $4.9 billion, over the next three years to fiscal 2025 in areas including automotive batteries and supply chain software as part of the company's medium and long-term growth strategy.
Germany to invest €4 billion in 'natural climate protection' [DW]
- The environment minister says the plan will strengthen biodiversity and dampen the effects of climate change. Landscape renaturation, trees for cities and the protection of federal lands are all part of the agenda.The environment minister says the plan will strengthen biodiversity and dampen the effects of climate change. Landscape renaturation, trees for cities and the protection of federal lands are all part of the agenda.
- Billions of dollars have been committed for the advancement of the electric vehicle transition by nearly every major global automaker, including GM, Ford and even Toyota.
NSW hydrogen hubs draw USD 3bn of investment interest [Renewables Now]
- Planned hydrogen hubs in the Hunter and Illawarra regions of New South Wales have received strong commercial interest, with the state’s call for expressions of interest (EOIs) attracting more than AUD 4 billion (USD 3bn/EUR 2.7bn) of investment proposals, the state government said.
Italy launching EUR-1.5bn measure for rooftop solar in agriculture [Renewables Now]
- A decree that provides for the launch of a EUR-1.5-billion (USD 1.65bn) measure to support solar in Italy’s agricultural sector was signed on Friday by agriculture minister Stefano Patuanelli.
EC inks EUR 1.1bn in grant deals for seven climate transition projects [Renewables Now]
- The European Commission (EC) signed the agreements for seven large-scale projects deploying low-carbon technologies to split between them a total of EUR 1.1 billion (USD 1.2bn) in grant funding from the EU Innovation Fund, financed by revenues from the EU's Emissions Trading System (ETS).
NY agency to sell $600 million green bonds to modernize the grid [BusinessNews]
- The New York Power Authority, the largest state-owned power utility in the U.S., plans to sell nearly $600 million of tax-free green bonds Tuesday for two projects that will rebuild transmission grids and add renewable energy.
- New Delhi: British International Investment (BII), formerly CDC Group, development finance institution (DFI) and impact investor, has big plans to commit investments aimed at boosting clean and sustainable economic growth in India and the larger Southeast Asia region.
Turkey receives loan of over €300 million to invest in 'climate-smart technologies' [EuroNews]
- The World Bank has approved a loan of $341 million (€306m) as part of a project to support Turkey's agricultural sector and encourage the use of 'climate-smart technologies'.
UK on track to reach 4,000 zero emission bus pledge with £200 million boost [Climate Action]
- Millions of people across the country will be able to make greener, cleaner journeys as almost 1,000 green buses are rolled out with the backing of nearly £200 million in government funding.
NFWF will invest $140 million in grants for coastal resilience [The Cordova Times]
- The NFWF grant program provides funds to restore, increase and strengthen the nation’s natural infrastructure, including coastal wetlands, reefs and barrier islands that provide a critical first line of defense for coastal communities and important habitat for fish and wildlife.
Pathways, Frameworks, Case Studies, Research, Climate Science
Global green finance rises over 100 fold in the past decade [Reuters]
- Global green financing, aimed at environmentally friendly projects around the world, has grown over 100 times in the past decade, a new study from the TheCityUK and BNP Paribas showed.
Government, RBI working on framework for Green Bonds [Money Control]
- The government and the Reserve Bank of India (RBI) are working on a framework for the issuance of Sovereign Green Bonds, the finance ministry said on March 31.
UN launches new coalition for chief financial officers, in bid to spur sustainable investment [Edie]
- The UN Global Compact on 29 March launched a new initiative aimed at raising more private sector investment in schemes that further sustainable development objectives.
ICMIF members hold $576bn in sustainable investment frameworks [Reinsurance News]
- International Cooperative and Mutual Insurance Federation (ICMIF) members have $576 billion of assets under management in investments aligned to sustainable investment frameworks, according to the ICMIF Members Sustainable Investment Report 2021.
Carbon market measures could raise over $3trn, says World Bank [Lloyd’s List]
- A World Bank report found market-based measures to tax or cap shipping emissions could raise $1trn to $3.7trn by 2050. But deciding who and what to spend it on is as politically thorny as ever
- The report, called Zeroing in on Healthy Air, makes electric vehicles and renewable electricity sources more urgent than ever—and the need for supporting policy. It finds that a national shift to 100% zero-emission passenger vehicles—as new-vehicle sales—by 2035 and medium- and heavy-duty trucks by 2040 would generate more than $1.2 trillion in public health benefits from 2020 to 2050. That adds up to projected annual health benefits ranging from $27.8 billion in 2030 to $62.4 billion in 2050.
- Flood, fire, and drought fueled by climate change could take a massive bite out of the U.S. federal budget per year by the end of the century, the White House said in its first ever such assessment.
Global carbon permit auctions raised $58 bln in 2021 [Nasdaq]
- Global auctioning of permits in emissions trading schemes raised $58 billion in 2021, more than double the previous year due to an increase in ambition globally to curb greenhouse gas emissions.
Meat consumption & trade of live animals sink to record lows in Germany [Vegconomist]
- German meat consumption fell by 2kg last year to a new record low of 55kg per capita. The trend has been attributed to the rise of plant-based diets, as well as lower out-of-home consumption due to the pandemic.
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