Climate Investment Newsletter 5/30 - 6/12
Individual Deals and Market Watch
Germany raises 4 bln euros from 30-year green bond tap [Yahoo Finance]
- Germany raised 4 billion-euros from the reopening of its 30-year green bond, memos from two lead managers seen by Reuters showed.
Ørsted pockets EUR 1.35bn from two-tranche green bond offering [Renewables Now]
- Danish green energy major Ørsted (CPH:ORSTED) said it has secured EUR 1.35 billion (USD 1.45bn) from the sale of green bonds to back its goal of expanding its global renewable energy platform to 50 GW by 2030.
Repsol agrees sale of 25% interest in renewables unit for EUR 905m [Renewables Now]
- Spanish multi-energy group Repsol SA (BME:REP) has agreed to sell a 25% stake in its renewables subsidiary Repsol Renovables to a French-Swiss consortium for EUR 905 million (USD 960.7m).
$885m investment – Department processes and facilitates sustainable businesses [The Fiji Times]
- More than $885 million worth of sustainable investments have been processed and facilitated by the Department of Environment this financial year, says director environment Sandeep Singh.
New World Development sells $700 million green, social bonds [CNA]
- Hong Kong major developer New World Development sold a total of $700 million in green perpetual bonds and social bonds, the first such dual tranche issuance in the market, according to term sheets seen by Reuters.
USDA has provided $700 million to restore sustainable fuel markets hit by pandemic [USDA]
- U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced that the Department has provided $700 million to help lower costs and support biofuel producers who faced unexpected market losses due to the COVID-19 pandemic.
Statkraft sells USD 584m of green bonds in oversubscribed deal [Renewables Now]
- Norwegian power company Statkraft A/S has placed senior unsecured green bonds with a total volume of NOK 5.5 billion (USD 584m/EUR 545.1m).
Rimac raises more than $500M from Porsche, Softbank and Goldman Sachs [Tech Crunch]
- Rimac Group said it has raised 500 million euro ($536 million), funds that will help the Croatian startup expand beyond its electric hypercar roots and grow into a global EV components supplier — and eventually a publicly traded company.
- The investment will fund a national footprint build-out of Agilitas Energy’s large pipeline of renewable energy and battery storage systems. The investment amount may be further upsized to $650 million upon the completion of certain projects. Funds managed by CarVal have assumed a minority position in Agilitas Energy and the companies have established a joint venture to own and operate the energy assets.
Baden-Wuerttemberg issues EUR 350m green bond [Renewables Now]
- The German state of Baden-Wuerttemberg has issued its second green bond worth EUR 350 million (USD 374.9m) amid solid investor interest.
Synthesis Capital secures $300 million for food tech investment opportunities [Green Queen]
- London’s Synthesis Capital has closed its first fund, scooping more than $300 million in capital pledges. According to the company, this is the largest dedicated food tech VC of its kind. The year-old investor, Led by Costa Yiannoulis, Rosie Wardle, and David Welch, the fund is looking to support food techs and alternative protein startups. Yiannoulis and Wardle are experienced investors within the sector while Welch, a biologist, brings a unique technical expertise.
PFC lists 300-million euro green bonds on Luxembourg Stock Exchange [Business Standard]
- State-owned PFC said its maiden green bonds of 300 million euros have been listed on Luxembourg Stock Exchange (LSE).
H&M, lululemon lead funding for new $250M fashion climate fund [Retail Touch Points]
- The Apparel Impact Institute (Aii) has introduced the $250 million Fashion Climate Fund, which will be used to identify, fund, scale and measure verified impact solutions to decarbonize and modernize notoriously wasteful fashion industry supply chains. The first four lead funders include H&M and lululemon, along with the H&M Foundation and the Schmidt Family Foundation.
Virgin Money launches £200 million fund to help farmers move to net zero [Business News Wales]
- The Agri E Fund is the first fund offered in the UK dedicated to supporting farmers with the investment and carbon audits required to help them achieve their net zero target.
Air Liquide inaugurates USD-250m liquid hydrogen plant in Nevada [Renewables Now]
- French industrial gases supplier Air Liquide (EPA:AI) last week announced the inauguration of a liquid hydrogen production and logistics infrastructure facility in the US state of Nevada that runs solely on renewable energy.
Raiffeisen Bank Romania raises 525 mln lei (106 mln euro) in green bond placement [See News]
- The bonds will be included in Raiffeisen's own funds and eligible debts, after receiving the approval of the country's central bank BNR, the bank said in a press release.
Macro Commitments
Asset managers commit $16 trillion of assets to net-zero target [Reuters]
- Asset managers have so far committed $16 trillion of assets to achieve net-zero greenhouse gas emissions by 2050 or sooner, 39% of their total assets, the latest report from the Net Zero Asset Managers Initiative
- The Central American Bank for Economic Integration (CABEI), in conjunction with the Inter-American Development Bank (IDB), the Development Bank of Latin America (CAF) and the Caribbean Development Bank (BDC) in the framework of the Ninth Summit of the Americas in Los Angeles, announced a $50 billion investment to support climate action in the region over the next five years.
US DoE gearing up to kick off USD-8bn programme for clean hydrogen hubs [Renewables Now]
- The US Department of Energy (DoE) signalled its intent to issue a funding opportunity announcement (FOA) for the Bipartisan Infrastructure Law’s USD-8-billion (EUR 7.5bn) programme to establish regional clean hydrogen hubs across the country.
Acme proposes USD-6.7bn green hydrogen, ammonia project in India's Karnataka [Renewables Now]
- India’s Acme Cleantech Solutions will pour INR 520 billion (USD 6.69bn/EUR 6.25bn) into India’s southern state of Karnataka to build a plant that will produce 1.2 million tonnes of green hydrogen and ammonia annually.
Temasek commits $3.6 billion to accelerate carbon markets and climate solutions [Impact Alpha]
- Temasek, the $283 billion sovereign wealth fund in Singapore is standing up GenZero to deploy long-term and flexible capital for technology and nature-based solutions “that can deliver positive climate impact by 2030,” said Temasek’s Frederick Teo.
EC makes available 1.43 bln euro to Romania, Croatia for green investments [Renewables Now]
- The European Commission said it is granting 1.43 billion euro ($1.53 billion) to Romania and Croatia to help modernise their energy systems, cut greenhouse gas emissions and support them in meeting their 2030 climate and energy targets.
Aviva Investors over half way to 2025 net zero infrastructure target (£1.4 billion) [Funds Europe]
- Aviva Investors has announced that it has invested or financed £1.4 billion in sustainable infrastructure as it states it is making “strong progress” towards its net zero targets for its Real Assets business.
Australian state to invest $850 mln in power grid [Reuters]
- Australia's New South Wales state said it would invest A$1.2 billion ($850 million) in new transmission lines over 10 years to speed up connections to the grid for new renewable energy projects as the state looks to shift to greener power.
New global fund to invest nearly R8bn ($500m) in nature to shore up climate change fight [Fin24]
- The Climate Investment Funds (CIF), one of the world's largest multilateral climate financing instruments, launched its "Nature, People, and Climate" (NPC) programme at a major UN environment conference in Stockholm.
The World Bank signs $350 million for the climate-resilient blue economy [Afrik21]
- The World Bank has announced the granting of a $350 million loan to Morocco. The financing will support the implementation of a blue economy development programme in the face of climate change, which is having a major impact on this North African kingdom.
California to spend $300M on curbing methane emissions [Carbon Herald]
- $200 million would go towards plugging idle, leaking oil wells and $100 million is dedicated to methane-detecting satellites. The satellites would track global methane leaks from fossil fuel operations, landfills and agriculture. According to the announcement, the US will also deploy NASA aircraft in Latin America to measure and help mitigate regional methane emissions.
- ReFED, a multi-stakeholder, non-profit composed of influential leading business, foundation, non-profit, and government leaders committed to reducing food waste, has partnered with Closed Loop Partners, a New York-based investment firm with a focus on building the circular economy, to launch a new $100 million Circular Food Solutions Funding Platform.
Pathways, Frameworks, Case Studies, Research, Climate Science
Global carbon footprint management market to reach $12.2 billion by 2026 [Cision]
- A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, released its report titled "Carbon Footprint Management - Global Market Trajectory & Analytics".
Global carbon pricing generates record $84bn in revenue [This Day]
- Global carbon pricing revenue in 2021 increased by almost 60 per cent from 2020 levels, to around $84 billion, a new World Bank report, has shown.
Decarbonising petrochemicals by 2050 will cost $759bn [Energy Monitor]
- Carbon capture and storage could become the cheapest option for net-zero petrochemicals by 2050, abating the emissions of 40% of high-value chemicals production, according to research from BNEF.
Hydrogen needs $133bn/yr under 1.5°C scenario – Irena [PE Media Network]
- Hydrogen technologies will require $133bn/yr of investment globally before 2030 if the world is to remain on track to limit global warming to 1.5°C this century, according to the International Renewable Energy Agency (Irena).
- According to a report by Benori Knowledge, a provider of custom research and analytics solutions, sustainable investments by Indian PE and VC firms are projected to grow to US$ 125 billion by 2026, at a five-year CAGR of 46 per cent. By then, it is also estimated that sustainable investments would make up 40% of AuM by Indian PE and VC firms.
Renewables provided 97.4% of new US electrical capacity in Q1 [Renewables Now]
- According to a review by the SUN DAY Campaign of data recently released by the Federal Energy Regulatory Commission (FERC) and the US Energy Information Administration (EIA), renewable energy sources (i.e., biomass, geothermal, hydropower, solar, wind) provided 97.4% of new domestic electrical generating capacity and 24.4% of actual generation during the first three months of 2022.
- A new report by a group of Deloitte economists claim that the continued use of fossil fuels is driving the global economy into a downward trajectory and that instead of contributing to economic stability, the cost to support such industries, in terms of carbon offsetting and other environmental considerations, may become unbearable. The ultimate result will be lower standards of living throughout the world and a complete economic slump.
Spain generates 49.8% of its power from renewables in May [Renewables Now]
- Renewables accounted for 49.8% of Spain’s total power production in May, after hitting 50.1% a month earlier, according to the latest preliminary figures released by Spanish grid operator Red Electrica de Espana (REE).
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