Climate Investment Newsletter 6/20 - 6/26

Individual Deals and Market Watch

Brookfield raises mammoth USD-15bn fund for net-zero investments [Renewables Now]

• Brookfield Asset Management Inc (TSE:BAM.A) has raised USD 15 billion (EUR 14.2bn) for its Brookfield Global Transition Fund (BGTF), the firm’s inaugural fund focused on the transition to a net-zero carbon economy.

Portugal picks companies for $8 bln investment in green projects [Reuters]

• Portugal has picked 51 consortia to invest a total of 7.57 billion euros ($8 billion) in green and other innovative projects over the next four years as part of the European Union's recovery programme.

Iberdrola secures EUR 1 billion loan to buy Siemens Gamesa and Vestas Wind Turbines [Off Shore Wind]

• EKF Denmark´s Export Credit Agency (EKF) has approved a EUR 1 billion credit facility to the Spanish energy company Iberdrola for the purchase of wind turbines from Vestas and Siemens Gamesa.

UAE's MAF sells $500 mln in perpetual green bonds for refinancing [Reuters]

• Dubai's Majid Al Futtaim (MAF), which develops shopping malls across the Middle East, on Thursday sold $500 million in perpetual green hybrid bonds non-callable for 5-1/4 years at 7.95%, a bank document showed.

Kiko Ventures joins the climate tech investment stampede with a $450m Evergreen fund [Tech Crunch]

• Set to deploy £200 million over the next five years, Kiko will launch with existing assets that it says is already valued at over £175 million, as well as a number of new investments it has yet to announce.

DBS extends A$295 mil green loan to GIC for Sydney CBD tower [The Edge]

• DBS has extended a A$295 million ($284.31 million) green loan to Singapore sovereign wealth fund GIC for the refinancing of Chifley Tower Sydney, announced the bank on June 22.

Primoris secures USD-260m solar EPC job in US South [Renewables Now]

• The energy and renewables segment of US speciality contracting services provider Primoris Services Corporation (NASDAQ:PRIM) has won a new solar job with an estimated value of USD 260 million (EUR 247.8m)

$206 million NSW Sustainable Farming Program to benefit biodiversity, climate and community [Mirage]

• The Program will pay farmers up to $135,000 to improve biodiversity, lower emissions and take up sustainable land practices. Payments will be made to secure and maintain accreditation showing this sustainable management.

Electric Hydrogen secures $198m in financing to decarbonize global industries with fossil-free hydrogen [businesswire]

• Electric Hydrogen (EH2) today announced a $198 million financing to support their efforts in making cost competitive fossil-free hydrogen. The round consisted of Series B equity and venture debt from top investors. Fifth Wall Climate Tech led the round, with participation by S2G Ventures, and lenders Silicon Valley Bank and Trinity Capital. Strategic investors included Amazon’s Climate Pledge Fund, Cosan, Equinor Ventures, Honeywell, Mitsubishi Heavy Industries, and Rio Tinto. Previous investors Breakthrough Energy Ventures, Capricorn Partners, Energy Impact Partners, and Prelude Ventures also participated.

Unilever launches $120m biotech venture for palm oil & fossil fuel alternative [Vegconomist]

• Multinational consumer goods company Unilever is partnering with San Diego-based biotech Geno to commercialize plant-based alternatives to palm oil and fossil fuels. Jointly investing $120 million in the new venture, Geno will use its proprietary fermentation process to create alternatives to the unsustainable feedstocks in the home care and beauty sectors.

Macro Commitments

State aid: Commission approves €1.7 billion Italian scheme to support investment towards a sustainable recovery [EC]

• The European Commission has approved a €1.7 billion Italian scheme aimed at providing investment support towards a sustainable recovery. The scheme was approved under the State aid Temporary Framework.

China's ICBC issues 10 bln yuan (~$1.5bln) in green bonds for carbon neutrality [The Star]

• The Industrial and Commercial Bank of China (ICBC), the country's biggest commercial lender, has issued 10 billion yuan (about 1.5 billion U.S. dollars) of green bonds to support the country's pursuit of carbon neutrality.

CN to invest $335 Million ($260mln) in Quebec enabling sustainable growth… [GlobeNewsWire]

• CN (TSX: CNR) (NYSE: CNI) announced plans to invest approximately C$335 million in Quebec in 2022. This includes investments in technology, rolling stock units and company-wide decarbonization initiatives, as well as network improvements. These investments will power sustainable growth and ensure the continued safe movement of goods in Quebec and everywhere on CN’s transcontinental network.

NY Green Bank’s new fund will finance clean energy in underserved areas [American Banker]

• The publicly backed entity is developing a $250 million “community decarbonization fund” to provide low-cost capital to community development financial institutions and other lenders for eligible electrification, energy efficiency and onsite power projects in low- and moderate-income areas.

Italy's Beltrame to invest 200 mln euro in Romania's COS Targoviste, build PV park [Renewables Now]

• Italian steel bars and special steels manufacturer AFV Beltrame Group said that it plans to invest 200 million euro ($210 million) to upgrade the recently-acquired Targoviste special steel plant, COS Targoviste, in Romania and to build a photovoltaic park with an installed capacity of 100-120 MW.

Norway awards $112 mln to build hydrogen maritime hub as part of green growth push [Carbon Pulse]

Pathways, Frameworks, Case Studies, Research, Climate Science

Clean energy investment to exceed $1.4T this year, still falls short of climate goals: IEA [Energy Mix]

• Global clean energy investment is on track to exceed US$1.4 trillion this year, representing “an important step in the right direction” that nevertheless falls “well short of what is required to hit international climate goals,” the International Energy Agency (IEA) concludes in its annual World Energy Investment 2022 report released.

India will need to invest $223 billion to meet its 2030 climate goals: Study [Hindustan Times]

• Corporate commitments from Indian power companies could help India achieve 86% of its 2030 goals of building 500GW of cumulative renewable energy generation capacity, the BloombergNEF report said

Food waste management market records a CAGR of 3.9% [Technavio - Cision]

• Technavio has been monitoring the Food Waste Management Market, operating under the global industrials market. The latest report on the Food Waste Management Market estimates it to register a growth of USD 7.60 billion, at a CAGR of 3.9% during the forecast period. The report offers an up-to-date analysis of the current market scenario, the latest trends and drivers, and the overall market environment.

Peru's renewables achieve 5.5% share in May [Renewables Now]

• Peru generated 5.5% of its electricity in May with non-conventional renewable energy sources, the Peruvian ministry of energy and mines said.

S. Africa’s $8.5 billion climate pact may draw new partners [Bloomberg]

• Alok Sharma, the president of the COP26 climate talks, said other nations and philanthropic organizations want to join the $8.5 billion climate finance deal offered to South Africa by the UK, US, Germany, France and the European Union.

Report: 56% of carbon market in 2030 could be covered by man-made emissions removal technologies [edie]

• Carbon credit developers will need to be held to account over the credibility of their claims in the coming years, a new report is warning, with a steep increase in offset projects using man-made technologies set to happen this decade.