Climate Investment Newsletter 7/11 - 7/17

Individual Deals and Market Watch

$3trn sustainable bond issuance milestone crossed [Environmental Finance]

• Despite a weaker than expected start to 2022, sustainable bond issuance continues to break new ground as it reaches a landmark $3 trillion total. Ahren Lester reports

Carney's Brookfield impact fund raises record $15bn [Environmental Finance]

• Brookfield Asset Management has raised $15 billion in the final close of its Global Transition Fund, making the Mark Carney co-managed fund the world's largest to be dedicated to impact investing.

Electric vehicle breakthrough as UK's 'amazing' progress set to save Britons £12billion [Express]

• BRITAIN has performed "better than expected" as its electric vehicle masterplan is set to save Britons £12billion, experts told Express.co.uk.

Ming Yang valued at USD 10bn by GDR listing in London [Renewables Now]

• Chinese wind turbine manufacturer Ming Yang Smart Energy Group Ltd (SHA:601615) was admitted for trading on the Shanghai segment of the main market of the London Stock Exchange.

Fannie Mae's single-family green MBS issuance tops $1 billion [FannieMae]

• Fannie Mae's Single-Family Green Mortgage-Backed Securities (MBS) program eclipsed $1 billion worth of issuance on the second anniversary of its launch and was recognized by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy as an ENERGY STAR® partner for the second consecutive year.

The European Bank for Reconstruction and Development achieves €1 billion in green bond investment [Climate Bonds Initiative]

• The achievement resulted from a €65 million green covered bond from PKO Bank Hipoteczny (PKO BH), certified by Climate Bonds Standards in June 2022 against the Climate Bonds’ Low Carbon Building Criteria. Proceeds of this particular bond will refinance mortgages relating to buildings in Poland.

LGT Capital Partners debut $550m impact fund [Environmental Finance]

• The Crown Impact S.C.Sp. fund, which has classified itself as meeting the criteria as Article 9 – the most sustainable under the EU's Sustainable Finance Disclosure Regulation – surpassed its target of $350 million.

India's ReNew refinances USD 525m worth of bonds ahead of time [Renewables Now]

• Indian renewable power producer ReNew Energy Global plc (NASDAQ:RNW) announced today it has successfully refinanced USD 525 million (EUR 520m) worth of dollar-denominated bonds that were set to mature in 2024.

Fred. Olsen Renewables attracts EUR-480m wind investment [Renewables Now]

• An investment fund backed by a trio from Norway, Germany and Singapore has agreed to provide EUR 480 million (USD 482m) in equity financing to Fred. Olsen Renewables AS (FORAS) for the development of existing and future wind projects in the Nordics and the UK.

Bridges raises £350m for 'dark green' real estate impact fund [Environmental Finance]

• Bridges Fund Management has closed their largest fundraise yet for a UK real estate ‘impact’ fund – exceeding its target of £300 million ($376 million) by £50 million.

Ember Infrastructure closes inaugural fund with over $340 million of commitments [Cision]

• Ember Infrastructure ("Ember") announced the final closing of Ember Infrastructure Fund I (the "Fund") with over $340 million of capital commitments to invest in the energy transition and resource efficiency sectors. The Fund received commitments from a diverse group of leading institutional investors from the United States, Canada and Europe, including public and private pensions, consultants, asset managers, foundations, insurance companies, and family offices.

Monolith raises more than $300 million [Cision]

• Monolith, a global leader in clean hydrogen, carbon black and ammonia, today announced its latest investment round of more than $300 million. Led by TPG Rise Climate, the dedicated climate investing strategy of TPG's global impact investing platform TPG Rise, with Decarbonization Partners, a partnership between BlackRock and Temasek, as co-lead, the investment marks the latest milestone in the company's global decarbonization efforts.

Closed Loop closes $200m circular economy fund [Environmental Finance]

• The fund has several investors, including new investors Kirkbi – a Danish family office – funds and accounts managed by BlackRock, and private association Realdania’s investment arm. They join existing investors including Nuveen, Nestlé, Microsoft, PepsiCo, Unilever and SK Geo Centric Co.

Apollo funds invest USD 175m in community solar firm Summit Ridge [Renewables Now]

• Funds managed by affiliates of alternative asset manager Apollo (NYSE:APO) have agreed to invest USD 175 million (EUR 174m) in US community solar specialist Summit Ridge Energy LLC, the companies said.

Bank of Ireland : SBCI launches €150m low-cost loans for SMEs to cut their energy costs and reduce carbon emissions [Market Screener]

• The Strategic Banking Corporation of Ireland (SBCI) has launched its €150m Energy Efficiency Loan Scheme to help SMEs and farmers cut their energy bills and reduce their carbon emissions by investing in energy-saving measures.

Partners Capital closes its inaugural environmental impact Private Equity fund at $143 million [Partners Capital]

• Partners Capital announced the closing of its inaugural private equity environmental impact fund, Partners Capital 15 degrees Fund, LP., with $143 million in client commitments. The fund has strong support from a variety of limited partners globally, including foundations, endowments and family offices.

Brazil's Neoenergia secures USD 102m green loan with IFC [Renewables Now]

• Neoenergia Coelba, a Bahia-based subsidiary of Brazilian utility company Neoenergia SA (BVMF:NEOE3), has entered into an agreement with the International Finance Corporation (IFC) for a BRL-550-million (USD 102.2m/EUR 101.8m) green loan.

Ex-BofA, Centerview Bankers Raising $101 Million Climate Fund [Bloomberg]

• Vilnius, Lithuania-based Contrarian Ventures is in talks to raise its second fund capped at 100 million euros ($101 million) and has already held a first closing, according to people familiar with the matter, who asked for anonymity because the news isn’t public.

Macro Commitments

Drax plans GBP-2bn bioenergy-plus-CCS project [Renewables Now]

• UK power producer Drax Group Plc (LON:DRX) plans to invest GBP 2 billion (USD 2.39bn/EUR 2.37bn) this decade in the development of two units under a bioenergy-with-carbon-capture-and-storage (BECCS) project at its North Yorkshire power station.

Innovation Fund: EU invests €1.8 billion in clean tech projects* [EC]

• The EU is investing over €1.8 billion in 17 large-scale innovative clean-tech projects with a third round of awards under the Innovation Fund. Grants will be disbursed from the Innovation Fund to help bring breakthrough technologies to the market in energy-intensive industries, hydrogen, renewable energy, carbon capture and storage infrastructure, and manufacturing of key components for energy storage and renewables.

Quinbrook unveils plans for ($1.7bln) 2 GWh big battery in Australia [PV Magazine]

• Australia’s Quinbrook Infrastructure has unveiled plans to build a AUD 2.5 billion (§1.7 billion) data storage precinct in Brisbane that will be powered by renewable energy. It will include one of the largest battery storage installations in the National Electricity Market.

Cathay Innovation launches €1bn fund dedicated to sustainable industry [UK Tech News]

• Cathay Innovation, an international venture capital firm, has announced a new €1bn (£847m) fund to invest in sustainable startups across the software, AI, fintech, digital health, and consumer tech spaces.

California public schools to receive $700 million to add more plant-based food [Green Queen]

• California public schools will soon have more plant-based options for students thanks to $700 million earmarked in the recent $300 billion Budget Act of 2022 signed by Governor Newsom ahead of the state’s new fiscal year.

British International Investment backs Indian electric car venture with up to $250 million commitment [BII]

• British International Investment (BII), the UK’s development finance institution and impact investor, is to invest up to $250 million in a new passenger electric vehicle venture to be launched by Mahindra & Mahindra, a leading Indian automotive group.

New €100m evergreen climate tech fund AENU launches [Sifted]

• Pirate Impact is evolving into an evergreen impact tech fund with €100m to invest in companies solving the climate crisis and advancing social equality. By 2026, they’re aiming to bring that fund size up to €500m.

World Bank approves $100 million to support Nepal’s development [The Kathmandu Post]

• The credit will support to encourage private sector investment in greening Nepal’s economy and creating jobs.

Qantas employees give climate tech a $100m shot in the arm [Financial Review]

• Australia’s fast-emerging climate tech industry has received a $100 million booster shot from Qantas employees’ superannuation fund and the Clean Energy Finance Corporation, helping it remain immune to the malaise infecting the broader technology sector.

Pathways, Frameworks, Case Studies, Research, Climate Science

New approach to debt could raise over US$400 billion for climate and nature projects in developing countries [iied]

• Immediate debt relief alone could help mobilise US$105 billion for climate and nature in countries in or at high risk of debt distress

Global economic growth failing to consider nature in policy decision, report finds [Climate Action]

• The way nature is valued in political and economic decisions is both a key driver of the global biodiversity crisis and a vital opportunity to address it, according to a four-year methodological assessment by 82 top scientists and experts from every region of the world.

Study: Point-of-sale EV rebates buyers prefer could have saved $2 billion vs. tax credits [Green Car Reports]

• Currently, new car buyers can get a federal tax credit of up to $7,500 for qualifying EVs or plug-in hybrids. But they must wait until they file taxes to receive that incentive, and because it's based on federal taxes, some buyers may not qualify. The tax credit also makes no distinction between wealthy car buyers and lower-income buyers that might rely on financial incentives to purchase an EV.

Africa risks $415bn annual losses without sustainable funding [Leadership]

• A senior director at Africa Finance Corporation (AFC) and CEO of AFC Capital Partners, Ayaan Adam noted that climate change, including high temperatures and prolonged heat wave phenomena, changing precipitation patterns, droughts, floods, rising sea levels may significantly damage infrastructure assets, leading to the loss of $415 billion by 2030 in Africa alone.

Plant-based meat alternatives cut climate emissions more [Clean Technica]

• The Boston Consulting Group (BCG), a global consultancy firm, has issued a report that finds, for each dollar, investment in plant-based alternatives results in way more greenhouse gas (GHG) savings than lots of other investment opportunities. And there’s more good news — moving human diets from meat to plants means less forest is destroyed for pasture and fodder growing and fewer emissions of the potent greenhouse gas methane produced by cattle and sheep.

US emissions inflict almost $2T in damage to other countries: study [The Hill]

• China and the U.S., the world’s top two greenhouse gas emitters, have collectively cost the global economy more than $3 trillion, forming the basis for potential litigation, according to research published last week.

Cashew milk to represent $207.7m of plant-based milk market by end of 2022 [Vegconomist]

• Cashew milk products are becoming more popular globally, attracting consumer appeal due to its low sugar and fat content. North America held a commanding 40% share in 2021 and the Chinese market is also increasing.