Your Newsletter at a Glance
Commentary by C4C
With a new $14bn sovereign fund in Ireland, a hydrogen push in the US and Australia, and the EU making big commitments for its cohesion policy budget, government funding last week took almost the whole sum at $147.2bn. The World Bank gets read the riot act by G7.
Government-, policy-, and regulatory- movements:
- US regulators are finalizing rules around who must disclose information about their emissions and how.
- Talk of reforming multilateral banks is getting serious with ten countries led by the US and Germany focusing on the World Bank as the first to be turned into a significant climate financer in emerging markets.
Climate finance headlines:
- Climate change is the most common reason for portfolio exclusion, even considering weapons manufacturing and tobacco.
- Damage from extreme weather was calculated to be $16M an hour - $140bn a year.
- Deutsche Bank forms an expert panel for nature-related risks and biodiversity opportunities.
Additional knowledge pieces to reflect on:
- Global warming is accelerating faster than we estimated it would during the last 15 years.
- An expert discussion of nuclear energy and how it fits in (or doesn’t) to the global energy transition.
- Cornell researchers find microbes that accumulate rare earth metals in a process called biosorption.
- WEF informs us, in seven minutes, of five ways Indigenous people protect the planet.
Research and Knowledge Sharing
Grow your climate finance expertise
Climate
I’m a climate scientist, and September’s warmth freaked me out a little [NY Times]
- Independent analysis from NGO Berkeley Earth indicates global average temperatures are already exceeding 1.3C. Last year's IPCC's report on global warming forecast that we would cross 1.5C "around 2040". Berkeley Earth’s analysis indicates that over the last 15 years the rate of warming was 40% more than during 1970's; there's been an acceleration of heat content in our oceans; satellite measurements of Earth's heat absorption/rejection balance over this timeframe show a strong increase in the amount of heat trapped.
Deutsche Bank seeks expert help in probing nature-linked risks, investments [Bloomberg]
- Deutsche Bank AG said it set up a panel to help it assess nature-related risks and identify new financial product offerings tied to the challenge of reversing biodiversity loss. Article highlights: Lack of data is a key hurdle to quantifying biodiversity loss; Nature markets valued at almost $10 trillion per year.
Climate crisis costing $16mn an hour in extreme weather damage, study estimates [The Guardian citing Nature Communications]
- A longitudinal assessment, published in Nature Communications by Victoria University in New Zealand, shows at least $2.8tn in damage from 2000 to 2019 through worsened storms, floods and heatwaves.
Nuclear power: Why the divide in expert views? [Bulletin of Atomic Scientists]
- There is a sharp divide in expert opinion about the future role of nuclear power in the global energy mix. A guided conversation among six experts shows recognition of its baseload potential, worry that renewable can’t become baseload fast enough, and concern that ramping nuclear risks fuel materials winding up in the wrong hands.
Climate rules are coming for corporate America [NPR]
- With the new financial reporting rules, the SEC's goal is to ensure that publicly-traded corporations are reporting comparable information in disclosing their emissions and the risks they face from climate change. In the same vein, there is interest to make sure companies aren't misleading investors about their environmental activities – e.g. greenwashing. The implemented rules indicate FY2023 disclosures will cover Scope 1 and 2 emissions, while FY2024 will extend to also include Scope 3.
Climate change the ‘most common’ reason for portfolio exclusion [Financial Times]
- Concern about climate change is the most common reason for financial groups to exclude companies from their portfolios, according to research that underlines how the phenomenon continues to affect investment decisions despite ESG pushback.
US, Germany back ‘fundamental reform’ of World Bank to scale climate finance [Climate Change News]
- A group of 10 major economies, led by the US and Germany, are building momentum to scale-up climate finance for developing countries by reforming how development banks spend money, starting with the largest: the World Bank. The group including all G7 members provided the Bank major recommendations for change and told senior management to come up with an evolutionary road map for the Bank by this December.
Nature-based Solutions
Metal-loving microbes savor green way to refine rare earth [Cornell Chronicle]
- Cornell scientists look to replace the environmentally deleterious chemical processing of rare earth elements with biosorption driven by the bacteria Gluconobacter oxydans. They claim bench efficiencies are approaching commercial extraction efficiencies and their startup REEgen, wants to build a pilot plant by 2028.
5 ways Indigenous people are protecting the planet [WEF]
- Indigenous people play a key role in protecting the planet. Here’s what we can learn from them about living more sustainably and fighting the climate crisis, in seven minutes.
Climate Finance
Deals and commitments above $100mn
The EU dedicates €118bn ($124bn) to climate change projects through cohesion policy [European Commision]
- Recognising the urgency of achieving Europe’s climate change targets, the EU is investing one-third of its cohesion policy budget in regional projects to reduce emissions and help countries, businesses and people adapt to new realities.
Japan's Marubeni and partners to invest $12.3 billion in UK clean energy [Reuters]
- Japan's Marubeni Corp has pledged to invest 10 billion pounds ($12.3 billion) with unnamed partners over the next decade in clean energy in the United Kingdom. Read the original MOU here.
Biden-Harris administration announces $7 billion for america’s first clean hydrogen hubs and more [DOE]
- The U.S. Department of Energy (DOE) announced $7 billion to launch seven Regional Clean Hydrogen Hubs (H2Hubs) across the nation and accelerate the commercial-scale deployment of low-cost, clean hydrogen. This funding comes a year after the EU announced €5.2bn in state aid for hydrogen development.
Australia's A$2bn ($1.3bn) Hydrogen Headstar Program invites expressions of interest [AUS]
- Australia announced the opening of the Expression of Interest stage of the Hydrogen Headstart Program (the Program). The Program will provide up to $2 billion of revenue support to support large-scale renewable hydrogen production projects.
Schaeffler proposes €3.6bn ($3.8bn) acquisition of powertrain maker Vitesco [Tech EU]
- Bavarian developer and manufacturer of powertrain technologies for sustainable mobility Vitesco saw a 20 percent increase in its share price following reports that the company’s largest shareholder, Schaeffler, is offering to acquire the company at a valuation of €3.64 billion.
Stellantis, Samsung SDI to build second $3.2bn EV battery factory in Indiana [Tech Crunch]
- Stellantis (formerly Fiat-Chrysler+Peugot) and Samsung SDI announced plans to invest $3.2 billion into a new EV battery plant in Kokomo, Indiana. This is Stellantis’ sixth battery plant globally and its second in the United States.
Bill Gates-backed Breakthrough fund targets third $1bn capital raising [Financial Times]
- The Breakthrough Energy Ventures investment company backed by Bill Gates is aiming to raise another $1bn for its third and latest fund to take stakes in companies and technology tackling global warming. Gates claimed a 15% failure rate – very low for venture, mostly in companies it started from scratch to address climate gaps it saw were lacking adequate innovation.
EVPassport scored $200M to build out its app-less charging infrastructure [Tech Crunch]
- EVPassport announced it has secured $200 million to accelerate the buildout of its electric vehicle charging stations. The funds came from Northleaf Capital Partners, a private equity firm that has acquired a controlling stake in the startup.
Skeleton Technologies raises €108n ($113.5mn) in funding round led by Siemens and Marubeni [Tech EU]
- Estonian super capacitor firm Skeleton Technologies secures €108M investment from Siemens and Marubeni for its SuperBattery tech and factory automation. The climate tech firm has raised over €300M to date based on its proprietary graphene architecture.
EC allows Italy to grant EUR 100mn ($105.1mn) for electrolyser production [Renewables Now]
- Italy received on Monday the approval of the European Commission (EC) with regard to a EUR-100-million (USD 106m) scheme for state aid to support the local manufacturing of electrolysers for hydrogen production.
Nature-based Solutions
Deals and commitments above $1mn
Climate and nature fund is ‘a gamechanger’ in addressing monetary gaps up to 2030 ($14.7bn) [Irish Times]
- The new €14 billion infrastructure, climate and nature plan combined with the future fund for Ireland is the most significant part of Budget 2024, according to Green Party leader Eamon Ryan. What was a first for climate and nature by being in effect a sovereign fund, was designed not to be inflationary and to act in a countercyclical way, while the level of funding at €3.15 billion would address climate plan gaps up to 2030 and help deliver on the EU nature restoration plan. Learn more about how the new sovereign wealth fund works.
Bolt Threads enters $250mn SPAC agreement to go public on Nasdaq with sustainable biomaterials [Vegconomist]
- Biomaterials company Bolt Threads, which has been a pioneer in mycelium-based leather alternatives and bio-based elastomers for cosmetics, has announced it will become a public company listed on the Nasdaq through a SPAC agreement that values the company (Bolt Threads) at $250 million.
Virginia Tech receives $80mn grant to help farmers implement climate-smart practices [AZO Cleantech]
- Virginia Tech received a record $80 million grant to help farmers implement climate-smart practices that could significantly reduce greenhouse gasses. With the Alliance to Advance Climate-Smart Agriculture, which is now underway, the College of Agriculture and Life Sciences will distribute more than $57 million of the largest grant in the university’s history to producers to enact climate-friendly practices and serve as a pilot program for a national model.
Cultivated tuna maker BluNalu reels in $33.5mn Series B, talks launch plans and APAC strategic partnerships [Green Queen]
- S-cultivated seafood producer BlueNalu has closed a $33.5M Series B funding round and extended partnerships with legacy seafood leaders in APAC to bring its cell-cultured bluefin tuna to market once it receives regulatory approval.
Eden Brew alternative milk startup attracts $25mn in investments to bring synthetic dairy to market [ABC]
- Australian start-up venture Eden Brew, a precision fermentation company focusing on milk proteins has attracted $25 million to date from investors, including local music icons Bernard Fanning and Angus Stone.
Canada, Nova Scotia to launch C$28.5mn ($20.9mn) nature conservation, protection programme [Carbon Pulse]
- Canada’s federal government and Nova Scotia have announced a C$28.5 million ($21 mln) programme that will run over three years to conserve and protect biodiversity, habitat, and species at risk across the province.
French animal-free dairy startup Bon Vivant raises €15mn ($15.8mn) seed round for B2B whey protein ingredient [Green Queen]
- French precision fermentation company Bon Vivant, which is working on animal-free whey and casein proteins for dairy, has closed an oversubscribed €15M ($15.9M) seed round. The startup’s new manufacturing facility will open by Q2 next year, and it is expecting FDA approval for its beta-lactoglobulin by 2025.
Aigen raises $11.2mn for robotic AgTech [SEC]
- Aigen, an agricultural technology startup, receives $11.2m in funding from an unknown series, according to SEC. Earlier this year, the company debuted an autonomous, solar-powered robotics platform for farmers that manages plants without the chemical inputs.
Catalonia makes historic €7mn ($7.4mn) investment in alt proteins research center [Vegconomist]
- With €7 million in funding — believed to be one of the country’s most significant investments made in the sector — CiPA aims to become a leading hub in southern Europe for research and innovation, focusing on ingredients, food, and feed alternatives to animal proteins.
Wanda Fish raises $7mn in seed funding to accelerate pilot production of cultivated bluefin tuna [Cision]
- FoodTech start-up Wanda Fish Technologies, Ltd., announces it has secured USD 7 million in seed funding. The round was led by Netherlands-based global aquaculture investment fund Aqua-Spark, with additional funding from returning pre-seed investors The Kitchen Hub by the Strauss Group, Peregrine Ventures, LLC, PICO Venture Partners, MOREVC, and CPT Capital, LLP. Since its inception, Wanda Fish has raised USD 10 million in funding.
Ocean rainforest secures $4.5mn to ramp up Californian kelp production [The Fish Site]
- The funding comes through a Plus Up award, from the US Department of Energy's Advanced Research Projects Agency – Energy (ARPA-E) as part of the Mariner program. This milestone achievement marks a significant leap forward in Ocean Rainforest's commitment to advancing offshore giant kelp cultivation technologies in California.
Natrx closes $3.5mn in oversubscribed seed funding round to advance innovation in climate resilience and restoration technology [Biz New Orleans]
- Raleigh, N.C.-based climate technology company Natrx, a leader in nature-based infrastructure technologies including artificial reefs, announced it has raised over $3.5 million in its oversubscribed Seed funding round led by Ponderosa Ventures and Oval Park Capital. This raise brings its total funding to date to more than $5.2 million.
Italian aquaponic firm The Circle secures €2.1mn ($2.2mn) in latest funding round [Tech EU]
- Italian aquaponic firm, The Circle, raises €2.1 million for new production facilities in Rome and Milan for sustainable food innovation.
Indian agri fintech startup KiVi closes seed round ($1.8mn) [EnTrackr]
- Agri smallholder farmer-focused fintech startup KiVi has raised Rs 15 crore ($1.8mn) led by Caspian Leap for Agriculture Fund, Piper Serica Angel Fund, YAN Angel Fund, Impact Innovators and Entrepreneurs Foundation, among others. The firm is a credit access and inputs supply platform.
Estonian real-time soil insights startup Paul-Tech secures €1.4M ($1.5mn) to sow seeds in the UK market [Tech EU]
- Estonian agritech startup Paul-Tech raises €1.4 million to boost soil management solutions. The funding will advance product offerings and fuel UK market expansion.
Vinted co-founder invests €1mn ($1.1mn) in HeavyFinance to boost green agriculture [Silicon Canals]
- Vilnius-based HeavyFinance, a fintech company fighting climate change through carbon farming, announced that it has secured €1M from Mantas Mikuckas, co-founder of Vinted, to support the green transformation of agriculture.