Your Newsletter at a Glance

Commentary by C4C

Tech and innovation gave us positive signals this past week, ranging from a new roadmap to assist corals on their road to recovery, to an injection of capital in scalable solutions for alternative proteins. Bonds and loans hit just over $5.7bn across three georegions, with most of the action in Africa.  

Government-, policy-, and regulatory- related mobilization:

• The EU launch the reporting phase of their carbon border adjustment mechanism.  
• Brazil evicts trespassers from Indigenous territories in the Amazon.
• Australia steps back from native forest logging in its West.
• American fund backs UK legal firm in a class action suit that, if won, could have substantial implications for environmental justice law and a major Brazilian mining company.
• Tanzania gets its first-ever green bond.

Climate knowledge:

• AFDB releases two new Country Focus reports for Sudan and Ethiopia on mobilizing private sector financing
• WEF leans in to CO2 for a carbon compromise in hard-to-crack industries
• The Economist presents a silver lining of oil-funded carbon capture
• IMF reminds us emerging economies need considerably more private capital for transition

In deal flow and commitment news, Nature Tech is back in the headlines this week with $17.7mn aggregated across land and water solutions. Ecosystem restoration resumes its top spot in NbS with $12.1bn, with almost all of it going towards the blue economy. Alternative proteins receive $68.4mn.

Research and Knowledge Sharing

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Climate

EU launched first phase of world's first carbon border tariff [Reuters]

• The European Union launch the first phase of the world's first system to impose CO2 emissions tariffs on imported steel, cement and other goods as it tries to stop more polluting foreign products from undermining its green transition. Tariffs will not be collected until 2026.

Climate Bonds releases policy guidance for financing Japan’s transition [Climate Bonds Initiative]

• The Climate Bonds Initiative announced the release of its new publication, "Japan: Policies to Grow Credible Transition Finance." This report explores Japan's commitment to delivering the goals of the Paris Agreement and provides policy guidance for Japan’s transition to a net zero future. You can read the full report, or skim a well-curated intro page on the key findings of the research.

Brazil’s government starts expelling non-Indigenous people from two native territories in the Amazon [AP]

• Brazil’s government begins removing thousands of non-Indigenous people from two native territories in a move that will affect thousands who live in the heart of the Amazon rainforest.

African Development Bank Group releases multiple Country Focus Reports [AFDB]

• The African Development Bank Group released two new Country Focus Reports on Sudan and Ethiopia, totalling 8 publications in this series thus far. The reports focus on recommendations for countries' active participation at COP28, with the theme of "Mobilizing private sector finance for climate and green growth in Africa".

US science agencies on track to hit 25-year funding low [Nature]

• Despite last year’s CHIPS and Science Act, which was meant to boost innovation, a  Nature news article forecasts Congress will cut spending on science to a new low.

BlackRock adds private credit to a booming ESG fund strategy [Bloomberg]

• BlackRock Inc. is tapping the private credit market to launch a new fund that will offer one of the fastest growing ESG investment strategies in the US. The Climate Transition-Oriented Private Debt Fund will become part of an investing platform at BlackRock that the asset manager says is worth more than $100 billion. It will be managed by a team of private debt investors together with sustainability and transition investing specialists from across the firm.

Gramercy bets millions against Vale in action for Mariana [Reset]

• American emerging market lender Gramercy Fund Management announced US$552.5 million loan to the London law firm that specializes in class action suits, including representing the victims of the collapse of the Fundão dam in Mariana, Brazil, in 2015. Vale is one of the defendants in the class action, which could generate compensation in excess of £36 billion. The dam belonged to Samarco, a joint venture between the Brazilian mining company and the Anglo-Australian BHP, the other defendant in the case.  Coverage of the investment by Gramercy in the trades suggests it may be one of the largest financial investments in a class action suit to date.

How carbon prices are taking over the world [Economist]

• A quarter of global CO2 emissions are now covered, and the share is rising fast.

Nature-based Solutions

CO2: a solution to the climate crisis (provided it's the green and leafy kind) [WEF]

• Three takeaways: Biogenic CO2 can be combined with green hydrogen to produce electro-fuels; such fuels could provide carbon-neutral energy for hard-to-abate industries; more developed CO2 infrastructure is needed to encourage adoption of this technology at scale. Eight minute listen available for those on the go.

Abandoned lands: a hidden resource for restoring biodiversity [Yale Environment 360]

• Abandoned farmland is increasing, with a billion acres — an area half the size of Australia — lost globally. Ecologists are increasingly pointing to the potential of these lands and of degraded forests as neglected resources for rewilding and for capturing carbon.  (In Brazil alone, degraded pastures are estimated at 200M acres).

CORDAP releases R&D Technology Roadmap [ICRI Forum]

• New ICRI member CORDAP releases R&D Technology Roadmap for understanding natural adaptation and assisted evolution of corals to climate change. While recent studies have shown corals may exhibit some adaptation to ocean warming, it is unclear whether corals are able change fast enough to survive ocean heat waves that are becoming more frequent. This is where assisted evolution could be a game-changer.

One step closer to ending native forest logging in Australia [Mirage News]

• Western Australia will soon become one of the first States in Australia to end commercial logging of native forests. The Cook Government's historic decision to end the unsustainable practice in the Forest Management Plan 2024-33 protects nearly two million hectares of native karri, jarrah and wandoo forests for future generations. From next year, timber will only be taken from WA's native forests to maintain forest health and for approved mine site operations.

Redonda: Tiny Caribbean island’s transformation to wildlife haven [BBC]

• Read about the eco-restoration of the tiny Caribbean island of Redonda - transformed from desolate rock to verdant wildlife haven starting in 2016 - and how it is inspiring rewilding advocates worldwide. The restored Redonda Ecosystem Reserve, which also encompasses surrounding seagrass meadows and a coral reef, spans 30,000 hectares (74,000 acres).

Climate Finance

Deals and commitments above $100mn

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German grid operator 50Hertz awards EUR 4.6bn ($4.9mn) power line contract for renewables switch [Reuters]

• German power grid operator 50Hertz signs a 4.6 billion euro ($4.88 billion) contract with Denmark's NKT and Italy's Prysmian Group as it expands high-capacity submarine and land cables for Germany's renewables switch. The contracts are for cables covering at least 3,500 kilometers which could be later extended by an additional 2,700 kilometers, the company added.

DOE Announced $3bn Partial Loan Guarantee to Sunnova’s Project Hestia [DOE]

• The U.S. Department of Energy (DOE), through its Loan Programs Office (LPO), announced the closing of a $3 billion partial loan guarantee to Sunnova Energy Corporation’s Project Hestia. The Project will make distributed energy resources (DERs), including rooftop solar, battery storage, and virtual power plant (VPP)-ready, consumer-facing software, available to more American homeowners and create more than 3,400 good-paying, high-quality American jobs.

Maersk's C2X plans $3bn green methanol plant in Egypt [Renewables Now]

• C2X, the newly established subsidiary of shipping major AP Moller-Maersk A/S (CPH:MAERSK-B), plans to build a plant in the Suez Canal Economic Zone, Egypt, to initially produce 300,000 tonnes/yr of green methanol for the shipping industry.

Greenprint closed $2.5bn tax credit JV with AB CarVal [Renewables Now]

• Clean energy and tax credit investment platform Greenprint Capital Management LLC will receive a financing commitment from AB CarVal to support its USD-2.5-billion (EUR 2.38bn) tax equity investment pipeline of renewable energy and storage projects.

IMF approved $1.3bn loan to Morocco to address climate risks [Zawya]

• The International Monetary Fund (IMF) approved a $1.32 billion to Morocco under the Resilience and Sustainability Facility (RSF) to address climate vulnerabilities. The 18-month RSF arrangement will bolster Morocco’s resilience against climate change and seize the opportunities from decarbonisation.

Japan committed $1bn to the UN climate change fund [Reuters]

• Japan will put up to 165 billion yen ($1.11 billion) into the United Nation's main fund for helping vulnerable countries cope with climate change. The UN's Green Climate Fund is seeking contributions to fund projects in climate-vulnerable counties over 2024-2027, aiming to exceed the $10 billion it raised in its last three-year round. Japan's pledge, which matched its commitment in the 2020-2023 funding round, makes the country one of the fund's biggest backers, after Germany, Britain and France.

Exus receives €1bn ($1.1bn)  in investment [ReNews]

• Partners Group has agreed to invest in renewables infrastructure and asset manager Exus, committing up to €1bn in growth capital. Exus is a provider of third-party asset management and project development services for owners of utility-scale solar, wind and battery storage projects in Europe and North America.

Emirates NBD launches $750mn in 5-yr debut green bonds [Reuters]

• Emirates NBD Bank (ENBD.DU), Dubai's largest lender, is set to raise $750 million from its first green bonds. A dollar-denominated 5-year green senior unsecured bond will be issued under its $20 billion Euro Medium Term Note Programme.

India, Japan launch $600mn fund for low carbon emission projects [Reuters]

• India's quasi-sovereign wealth fund, the National Investment and Infrastructure Fund (NIIF), and the Japan Bank for International Cooperation (JBIC) launch a $600-million fund to invest in sustainability projects. JBIC will contribute 51% of that figure, and the Indian government the rest.

VinFast to invest $400mn in India, Indonesia EV factories [Deal Street Asia]

• VinFast aims to build factories in India and Indonesia, while anticipating a $1.2 billion cash infusion from its founder and others as the Nasdaq-listed electric vehicle producer hopes to reach 50 markets by the end of 2024.  We note that according to Reuters, 60% of its last quarter sales went to a vehicle fleet owner controlled by its founder.

Electric Hydrogen raises $380mn in latest funding round [Reuters]

• Hydrogen technology startup Electric Hydrogen (EH2) valued at $1bn after a $380mn financing round. The company raised the funds in an oversubscribed series C financing round led by Fortescue, Fifth Wall and Energy Impact Partners. The round also included BP Ventures, Oman Investment Authority, Temasek, Microsoft's Climate Innovation Fund, and the United Airlines' Sustainable Flight Fund.

At One Ventures raises $375mn climate tech fund [Cision]

• At One Ventures, the climate tech venture capital firm founded in 2020 by Tom Chi, founding member of Google X, announced the close of a US$375 million second fund. Like Fund I, Fund II will focus on backing early-stage startups with disruptive technologies that can improve planetary health by resetting the industries causing the most damage to the planet, such as buildings and construction, energy and transportation, and food and agriculture.

Commission approves €300mn ($318.1mn) French scheme to support investments in the use of solid recovered fuels to foster the transition to a net-zero economy [EU Commission]

• The European Commission approves a €300 million French scheme to support companies investing in the use of solid recovered fuels (also known as solid waste) to foster the transition towards a net-zero economy, in line with the Green Deal Industrial Plan.

White Summit aims to raise €300mn ($318.1mn) for decarbonization fund [Bloomberg]

• Asset manager White Summit Capital starts a financing round for a new infrastructure fund focused on decarbonization, with the aim of reaching a first close of as much as €300 million ($315 million) by the end of this year. The fund will be investing in industries ranging from sustainable mobility to green hydrogen and biogas, with a goal of raising the same amount in 2024 to reach a final value of as much as €600 million.

CRDB issues Tanzania’s first-ever green bond ($300mn) [African Business]

• CRDB’s Kijani Bond (Kijani is Swahili for ‘green’), a $300m debt security, is the largest in sub-Saharan Africa and is set to be implemented over a five-year period under a multi-currency Medium Term-Note (MTN) programme.

ADB approves $300mn loan to fund greening of Chinese coal city [Reuters]

• The Asian Development Bank (ADB) approves a $300 million loan to an industrial city in a major Chinese coal-producing province to help "catalyze green" transformation of the city of 3 million people. The loan for Changzhi in the northern province of Shanxi will help fund a $665 million project, partly financed by the Chinese government, to reduce poverty, cut carbon emissions and improve urban liveability in a city that has long depended on coal, the ADB said.

Ashtrom Renewable Energy secures $270mn in solar project financing [Impact Alpha]

• Ashtrom Rebewable’s funding, from a consortium of banks including ING Capital, Rabobank and Société Générale, will help the renewable energy developer complete a large-scale solar plant in Texas . The Tierra Bonita project, being developed with Austin-based OnPeak Power, is expected to have 400MW of capacity.

Singapore’s GIC and Hy24 pump $115mn into InterContinental Energy [Real Assets]

• Singapore sovereign wealth fund GIC and hydrogen infrastructure fund manager Hy24 make a $115m (€109m) equity investment in InterContinental Energy (ICE) to help scale the business. GIC first invested in ICE in early 2022. Hy24, as a new investor in ICE, is providing capital from its clean hydrogen infrastructure fund. The capital injection will help accelerate the deployment of ICE’s portfolio of hydrogen projects.

Grey Rock forms partnership with CarbonCycle to grow their carbon capture and sequestration platform ($100mn) [Businesswire]

• Grey Rock Investment Partners (“Grey Rock”), through its affiliated investment vehicles, announces an agreement to make a controlling investment in CarbonCycle, LLC (“CarbonCycle”) to fund additional growth of the company through a capital commitment of up to $100 million. CarbonCycle plans to use the committed capital to execute on its strategy to develop Carbon Capture and Sequestration (“CCS”) projects, primarily focusing on natural gas processing facilities and other related industrial emitters.

India’s Northern Arc eyes $100mn green private credit fund [Bloomberg]

• Northern Arc Investments, a private credit investment manager in India, plans to launch a $100 million fund, seeking opportunities in green companies in the country. The Northern Arc Capital subsidiary began global roadshows to raise investor funds for what would be its first foreign currency private debt fund, said Ravi Vukkadala, the unit’s CEO. The fund will likely launch by December, he said in a recent interview.

Nature-based Solutions

Deals and commitments above $1mn

Countries pledge to raise $12bn to fund coral reef protection [Reuters]

• The International Coral Reef Initiative (ICRI) says its members will raise $12 billion to protect coral reefs from threats such as pollution and overfishing. They aim to secure public and private investment to help conserve and restore coral ecosystems, and "secure the future" of 125,000 square kilometers of shallow-water tropical coral reefs and double the areas under effective protection by the end of the decade.  ICRI was launched in 1994 by Australia, France, Japan, Jamaica, the Philippines, Sweden, Britain and the United States. Its members now include 45 countries that represent three quarters of the world's coral reefs.

Dubai’s firm inks $1.5bn carbon credit deal with Zimbabwe [Carbon Credits]

• A Dubai-based company, Blue Carbon, inked a deal with Zimbabwe to create carbon credits from offsetting projects in the African country involving almost a fifth of its total landmass. The two parties signed a memorandum of understanding (MoU) worth $1.5 billion to fund forest protection and rehabilitation projects. The carbon sequestered from the forests will generate the corresponding amount of carbon credits.

Ivory Coast: €300mn ($318.1mn) from Amsterdam for water and the fight against coastal erosion [Afrik21]

• The Netherlands announce €300 million in funding to be disbursed by the Dutch company Invest International. The memorandum of understanding was signed on 2 October 2023 between the Ivorian Minister for the Economy and Finance, Adama Coulibaly, and Invest International’s Director of Public Infrastructure, Lara Muller.

Cambridge University receives $72mn gift for habitat restoration projects across Europe’s land and seas [Eureka Alert]

• Arcadia Foundation makes a new philanthropic donation to the University of Cambridge, taking its total support for the Endangered Landscapes & Seascapes Programme to over $138 million. The Endangered Landscapes & Seascapes Programme supports the large-scale restoration of Europe’s most treasured but endangered ecosystems, enriching biodiversity while revitalizing local economies.

NFWF’s National Coastal Resilience Fund announces $44.7mn to support projects across the nation [Globe Newswire]

• The National Fish and Wildlife Foundation (NFWF) announces 27 awards totaling $44.7 million from its National Coastal Resilience Fund (NCRF), supported with funding through the Inflation Reduction Act. The projects supported by the grants will restore and enhance a diverse range of coastal habitats and provide natural buffers for communities against storms and other coastal hazards. Funds will support planning, assessment, and final implementation in coastal communities around the U.S.

Umiami raises additional EUR 32.5mn ($34.5mn) in Series A [Vegconomist]

• French startup Umiami, an innovator in the plant-based whole cut category, secures €32.5 million in a Series A round, bringing its funding to €59 million and its overall capital raised to an impressive €100 million in just three years.

Australia’s Eden Brew secures $24.4mn for animal-free dairy expansion [Vegconomist]

• Australian precision fermentation company Eden Brew raises $24.4 million in a Series A round led by previous investor Main Sequence Ventures to introduce animal-free dairy in the alt protein market.

$15mn to MSU-led Fish Innovation Lab extends global food security pursuits through aquatic systems [MSU]

• Mississippi State University receives a five-year, up to $15 million extension for the Feed the Future Innovation Lab for Fish to address global food security challenges through aquatic food systems. The Fish Innovation Lab is funded by USAID as part of Feed the Future, the U.S. government’s global hunger and food security initiative. The Fish Innovation Lab works to reduce poverty and improve nutrition, food security and livelihoods in partner countries by supporting research on sustainable aquatic food systems.

Pow.bio raises $9.5mn to expand continuous fermentation platform [AgFunder News]

• Pow.bio, a Berkeley-based startup seeking to change the economics of precision fermentation by enabling continuous process, raised a $9.5 million series A round led by Re:Food and Thia Ventures. The round—which was supported by Hitachi Ventures with participation from Bee Partners, Possible Ventures, X factor, iSelect, Climate Capital, Vectors, Better Ventures, and Cantos—will enable Pow.bio to expand operations at a demonstration plant in Alameda, California set to open next summer.

Canada’s Ocean Supercluster, energy companies investing CAD$10.5mn ($7.7mn) in AI fish monitoring [Seafood Source]

• Canada’s Ocean Supercluster and multiple Canada-based electric companies invest CAD$10.5 million in tech for fish. The investment is aimed at advancing AI fish monitoring technology and fish tracking so that power companies can maximize energy production at hydropower facilities while safeguarding fish species. Ocean Supercluster is contributing CAD$5 million to the project, with the remaining funding sourced from the Fundy Ocean Research Centre for Energy, BigMoon Power, Nova Scotia Power Inc., New Brunswick Power Corporation, and Deepsense.

Blue biotech firm FlexSea raises £2mn ($2.5mn) for sustainable seaweed bioplastic production [Tech EU]

• Flexsea, a London-based biotech firm, raises £2M to develop seaweed-derived bioplastic which breaks down in sea, soil or home composting.

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