Climate Investment Newsletter 4/11 - 4/17

Individual Deals and Market Watch

California Climate Investments program implements $10.5 billion in ghg projects [Gov.CA]

• From December 2020 through November 2021, more than 75,000 new California Climate Investments projects were launched, delivering significant environmental, economic, and public health benefits across the state… In 2021, more than $1 billion in funding was directed to projects benefiting priority populations. To date, almost $5.2 billion has reached these communities – or more than half of all project investments.

Global solar corp funding slips to USD 7.5bn in Q1 2022 [Renewables Now]

• Total corporate funding in the solar power sector around the world, including venture capital (VC), public market and debt financing, arrived at USD 7.5 billion (EUR 6.88bn) in the first quarter of 2022, falling by 7% in annual terms, shows a new report by Mercom Capital Group.

Hong Kong to sell up to $2.55 billion retail green bond this month [US News]

• Hong Kong will re-launch its inaugural retail green bond this month as the coronavirus pandemic eases to raise as much as HK$20 billion ($2.55 billion), the city's financial chief said on Sunday.

High-profile bidders after EUR-1bn renewables portfolio in Spain - report [Renewables Now]

• Oil-and-gas multinational Shell Plc (LON:SHEL) and utilities Naturgy Energy Group SA (BME:NTGY) and Verbund AG (VIE:VER) have lined up to acquire some EUR 1 billion (USD 1.09bn) worth of renewable energy assets in Spain from Spanish investment platform Q-Energy, Reuters reported citing three sources in the know.

Fortescue Metals taps US green bond market with USD-800m offering - report [Renewables Now]

• Australian iron ore giant Fortescue Metals Group Ltd (ASX:FMG) has sold USD 800 million (EUR 733.9m) worth of green bonds as part of a larger bond offering in the US, the Sydney Morning Herald reports.

Chris Sacca’s climate investment firm raises $350 million to invest in carbon removal start-ups [CNBC]

• Chris Sacca’s climate investment company, Lowercarbon Capital, announced it raised a $350 million fund specifically to invest in carbon removal start-up companies.

Grover grabs $330M to double down on circular economy with consumer electronics subscriptions [Tech Crunch]

• The Berlin-based company has raised $330 million — specifically $110 million in equity and $220 million in debt — that it plans to use to expand its stock of devices as it gears up for more user growth; build out more tools and financial services to personalize the experience for individuals to encourage more business on its platform through schemes like loyalty programs; and drive deeper into big markets, such as the U.S.

Fibra UNO’s $300 million green loan [Global Legal Chronicle]

• Co-investment vehicle of Fibra UNO, Mexico’s largest real estate investment trust, announced a $300 million green credit facility from a syndicate of banks including Banco Santander, BBVA, HSBC, Banco Sabadell, Banregio and Intercam Banco. The transaction closed on March 18.

Enerkem closes $255 million financing round to drive its growth and deployment of its leading gasification technology [Enerkem]

• Enerkem, a world leader in the production of low-carbon intensity biofuels and circular chemicals from waste materials, announces the closing of a new financing totaling $255 million.

Commonfund Capital closes its inaugural environmental sustainability fund at $233 million [Commonfund]

• Commonfund Capital announced the closing of its inaugural environmental sustainability fund, Commonfund Capital Environmental Sustainability Partners 2020, L.P., at $233 million. The fund had strong support from a variety of limited partners globally including foundations, endowments, family offices, pensions, corporations, registered investment advisors and consultants.

Choco gets its horn ($111 mln) amid mission to remove food waste from supply chain [Tech Crunch]

• Choco, a company aimed at building a more sustainable food system for restaurants and suppliers, brought in another big raise — this time $111 million in what it’s calling a Series B2 round — to boost its valuation to $1.2 billion.

Inside the new $100 million women-led climate tech fund [Green Biz]

• Voyager Ventures announced a $100 million fund focused on early-stage climate tech companies. The size alone is impressive for an inaugural fund, and its backing includes many big names in tech and investing.

Macro Commitments

Honda to spend $40 billion on EV push, plans 30 models [Bloomberg Quint]

• Honda Motor Co. plans to spend 5 trillion yen ($40 billion) on its push into electric vehicles over the next decade, as the Japanese automaker with the most aggressive EV ambitions moves to back its bold advance into next-generation cars with concrete plans.

Osaka Gas signs up to $11-bln Australian green hydrogen export project [Carbon Pulse]

• Japan’s Osaka Gas Co Ltd (TYO:9532) has signed a joint development agreement with Aqua Aerem regarding the technology group’s 10-GW project to produce cheap green hydrogen in Australia’s Northern Territory for domestic consumption and export. [Renewables Now]

RWE : targets up to 1.5 billion Euros gross investments by 2030 to help deliver Ireland's net zero ambitions [Market Screener]

• RWE, a global leader in renewable energy with a clear ambition to be carbon neutral by 2040, is committed to investing €50 billion gross through to 2030 to expand its powerful and green generation capacity to 50 gigawatts, with up to €1.5 billion gross already earmarked for Ireland through current projects being developed.

Siemens Energy, Prysmian bag GBP 1.5bn of contracts for UK-German interconnector [Renewables Now]

• The first direct power connection between the UK and Germany should ensure a flexible and secure electricity supply and help avoid the waste of green energy as wind turbines in Germany must be regularly curtailed due to grid bottlenecks in order to avoid overload or a blackout. The new interconnector will solve this problem and transport the excess electricity in either direction.

Deloitte expands global climate practice with $1B investment [Bloomberg Tax]

• Deloitte—one of the world’s largest public accounting firms—will pump $1 billion into its global sustainability practice amid surging demand for climate-related reporting and looming new corporate mandates.

Stripe leads a $925 million ‘advance market commitment’ for carbon removal [Impact Alpha]

• The collaboration, called Frontier, is intended to speed up the commercialization and declining cost curves for carbon removal solutions, which the latest Intergovernmental Panel on Climate Change warned will be necessary to keep warming in check.

White house starts $500 million energy efficiency program for schools [Smart Energy Decisions]

• The White House announced the Biden-Harris Action Plan for Building Better School Infrastructure to upgrade public schools with modern, clean, energy-efficient facilities and transportation. The action plan activates the entire federal government to advance solutions including energy efficiency retrofits, electric school buses, and resilient design.

UK Government unveils £375m investment for innovative energy technologies [Climate Action]

• The UK Government has announced a £375 million package of support for innovative energy technologies that will power British homes and businesses for decades to come.

Orix issues EUR-300m green bond to fund Elawan acquisition [Renewables Now]

• Japanese financial services group Orix Corporation (TYO:8591) said that it is issuing green bonds for a total amount of EUR 300 million (USD 327.2m) to pay for the costs of acquiring the majority shareholding in Spanish wind and solar developer Elawan Energy SL.

ADM announces $300m investment to grow alt-protein production and open protein innovation center [Vegconomist]

• Agrifoods giant Archer Daniels Midland Co (ADM) announces the company is investing approximately $300 million to expand its alternative protein production facilities in Decatur, IL, in addition to opening a new state-of-the-art Protein Innovation Center.

Nuveen and Shell Foundation to deploy $100 million for climate resilience in emerging markets [Impact Alpha]

• Nuveen, the $1.3 trillion asset-management arm of TIAA, has enlisted Shell Foundation to allocate growth capital to companies helping vulnerable communities in Asia and Africa get clean energy and build resilience in the face of climate change.

Pathways, Frameworks, Case Studies, Research, Climate Science

IRENA: Renewables provided 80 per cent of new global power capacity in 2021 [Business Green]

• Clean energy now comprises 38 per cent of global power capacity after another record year of additions driven largely by wind and solar, latest figures reveal

Green tech in India estimated to reach $45-55 billion by 2027: BCG report [mint]

• Green tech in India is expected to reach a $45-55 billion market size in the next five years, as per the latest report of Boston Consulting Group (BCG). The American global management consulting firm believes that the green tech in the country is still at a nascent stage, and expects innovation and investment to support growth ahead.

Europe leads way in climate funds market with $325bn in assets [funds europe]

• Europe accounts for more than three quarters of global assets in funds with a climate-related mandate, remaining the largest and most diverse climate funds market, according to Morningstar.

Australia’s plant-based products predicted to reach up to $9 billion valuation by 2030, new report suggests [Green Queen]

• Australia is being heralded as a plant-based protein powerhouse of the future. A new report by government agency CSIRO has cited the sector could be worth between between $3 billion and $9 billion, by 2030. Current figures suggest the sector is worth $140 million. Key drivers will be domestic grocery partnerships, increased international exports and tech-driven innovation.

Wind industry must quadruple by the end of decade to ensure net zero by 2050 [Climate Action]

• Record years for several regions and offshore wind reflect strong market growth, but installations must still quadruple by the end of the decade to meet a net zero pathway.

New report finds renewable energy can create three times as many jobs compared to fossil fuels [Climate Action]

• A new report by UKERC has found that Renewable energy can create three times as many jobs per million pound invested as compared to fossil fuels.

SBTi launches initiative to define net-zero targets for financial institutions [Climate Action]

• The Science Based Targets initiative (SBTi), the global body enabling businesses to set emissions reduction targets in line with climate science, is publishing a Net-Zero Foundations for Financial Institutions paper.

Global energy industry to fork out USD 2.1trn in spending in 2022 - Rystad Energy [Renewables Now]

• Global energy industry is expected to spend USD 2.1 trillion (EUR 1.92trn) in 2022, and invest primarily in oil and gas but also in renewables and hydrogen, according to a research by business intelligence firm Rystad Energy.