Your Newsletter at a Glance
Note from the Author: Scaling and acceleration signals are everywhere this week. The IEA tells us low carbon energy investment will reach $1.7 trillion in 2023 representing 67% of all energy investment. Keep in mind, global investment in the low-carbon transition should be running about $4tn per year, so this helps fill the gap. Scottish energy company SSE announces plans to invest $49.3bn in the next ten years. In one of the biggest climate-linked M&A deals we have seen, Blackstone agrees to buy the climate technologies division of Emerson for $14bn.In emerging markets, Ola Electric picks up an additional $300M to seek to dominate two-wheel EVs in India. And Indonesian solar developer, Perusahaan Listrik Negara, receives a $700M commitment from the Just Energy Transition Partnership (JETP).
The nature-based solutions field saw more private capital committed to regenerative agriculture funds and the World Bank supporting sustainable rice production in China, with a focus on methane reduction. And there is research published in Nature Sustainability bolstering the case that mangrove restoration projects create outsized carbon absorption benefits.
Deal Count: This week covers over $135b in deals and commitments in climate finance and $3.5b in NbS around the world. Enjoy the 40 summaries below!
Climate Finance
Deals and commitments above $100m
Market Watch
SSE unveils plans to invest £40 billion ($49.3b) in clean energy in the next decade [Energy Digital]
- Scottish energy giant SSE has pledged to invest up to £40bn (US$49.3bn) in green energy in the next decade after seeing its annual profits almost double. Jeremy Hunt, Chancellor of the Exchequer, said the commitment was a “further vote of confidence in the British economy.” In the 12 months to the end of March 2023, the Perth-based company’s pre-tax profit was £2.18bn – up from £1.16bn a year prior. During the latest financial year, SSE made £2.8bn worth of investments.
Oman awards three projects for USD $20bn in first green H2 auction [Renewables Now]
- Oman signed deals for the development of three projects for green hydrogen production in the Duqm area in the first round of a tender aimed at supporting the sultanate's goal to produce more than 1 million tonnes by the end of the decade. The three projects will require about USD $20 billion (EUR 18.72bn) in investments and will be built on an area of 960 square kilometers (370.7 square miles) in central Oman.
Blackstone buys controlling stake in $14bn climate solutions business [City Wire]
- Blackstone funds have completed a deal to take a 60% equity stake in Emerson’s climate technologies division as it separates from the rest of the firm. The new standalone business, which was valued at $14bn by Blackstone, will be rebranded to Copeland.
Research
Brazil’s Amazon region to host UN Climate Summit in 2025 [Bloomberg]
- Belem, a city in Brazil’s Amazon rainforest region, will host the United Nations’ annual climate change summit in 2025. The UN’s decision to bring the summit, COP30, to Brazil is the latest boost to the leftist leader’s efforts to assert a global leadership role on environmental issues.
Clean energy investments to exceed USD $1.7 trillion in 2023, outpacing fossil fuels [MENAFN]
- In its latest report, the International Energy Agency (IEA) highlighted that investment in clean energy is experiencing a significant surge and is projected to surpass USD1.7 trillion in 2023—the global energy sector is expected to witness a total investment of around USD $2.8 trillion this year, with approximately 60.7 percent directed toward clean technologies.
Nature-based Solutions
Deals and commitments above $1m
Market Watch
World Bank approves $255m to support sustainable rice production in China [TVC News]
- The World Bank’s Beijing office announced that it has approved a loan of USD $255 million to assist a scheme that will reduce methane emissions and improve irrigation and drainage services in rice production in central China’s Hunan Province. According to the bank, the program will help to increase climate resilience in rural areas while also lowering greenhouse gas emissions from grain production. The program will spend five years constructing a sustainable rice production model and creating reproducible and scalable knowledge and experiences for China and other rice-growing countries, with a total investment of $1.24 billion dollars funded by a World Bank loan and Chinese government funding.
M&G pours $165m into Regenerate’s pioneering sustainable agriculture fund [Fintech Global]
- M&G has committed to investing up to 150 million euros ($165m) into Regenerate’s inaugural fund and will take an equity stake in the company. With a particular emphasis on private-market assets with measurable impact, the Regenerate European Sustainable Agriculture Fund has M&G as its cornerstone investor. Regenerate’s fund is strategically designed to invest directly in agricultural businesses in Europe that are committed to producing “regenerative and climate-positive produce.” This investment approach extends to improving soil health, water conservation, emissions, and biodiversity. The exact size of M&G’s equity stake in the firm, which is to be taken through its Catalyst strategy, has not been disclosed.
Big Idea Ventures raises initial funds for $75m new Protein Fund II [vegconomist]
- Food tech investor Big Idea Ventures (BIV) has announced a first close for its New Protein Fund, which aims to raise $75 million within the next 12 months to support new food tech and protein innovators. This new raise brings its total assets under management to over $100 million. Investors in the initial funding round included previous New Protein Fund I backers AAK (a Dutch plant-based oil ingredients firm) and Bühler, a solutions partner for the food processing industry.
Research
Insect protein market anticipated to grow $3.3 billion by 2027 [Food Engineering]
- MarketsandMarkets reports that the global Insect Protein Market size is projected to reach $3.3 billion by 2027, at a CAGR of 33.4% during the forecast period, 2022-2027. The demand for animal protein is expanding quickly in emerging economies. They claim the rising regulatory approvals from the developed regions for use of insect protein is propelling the growth of the insect protein market.
Ocean alkalinity enhancement through restoration of blue carbon ecosystems [nature sustainability]
- The paper argues that blue carbon ecosystems provide a wide range of ecosystem services, are critical for maintaining marine biodiversity, and may potentially serve as sites of economically viable carbon dioxide removal through enhanced organic carbon storage. Most notably, their findings suggest that restoring mangroves, which are common in tropical shallow marine settings, will lead to notable local ocean alkalinity enhancement across a wide range of scenarios. Their research uses biogeochemical simulations to show that restoration of these marine ecosystems can also lead to permanent carbon dioxide removal by driving ocean alkalinity enhancement and atmosphere-to-ocean CO2 fluxes. Enhanced alkalinity production is linked to increased rates of anaerobic respiration and to increased dissolution of calcium carbonate within sediments. This work provides further motivation to pursue feasible blue carbon restoration projects and a basis for incorporating inorganic carbon removal in regulatory and economic incentivization of blue carbon ecosystem restoration.
Climate Finance
Deals and commitments above $100m
Individual Deals & Market Watch
€18 billion ($19.2b) announced for climate action and clean energy [Cadwalader]
- The European Commission and the European Investment Bank (EIB) announced their intention to jointly provide €18 billion in funding to finance projects covering climate action, clean energy and connectivity in the EU’s partner countries. The financing contributes towards the European Union’s Global Gateway’s goal to raise €300 billion by 2027 to fund high-quality sustainable projects, providing investment to support the prevention, adaptation and mitigation of climate change in developing countries.
ONGC announces $12bn in green project investment by 2030 [Offshore Technology]
- India’s largest oil explorer Oil and Natural Gas Corporation (ONGC) has announced plans to invest Rs1tn ($12.1bn) by the end of 2030 to grow its renewable power portfolio to 10,000MW by 2030, up from 189MW at the end of March 2023. The company plans to reach zero direct emissions by 2038. The company will not include scope 3 emissions from the oil and gas it sells in these targets. Oil and gas companies face criticism from environmentalists and NGOs for failing to include the responsibility for scope 3 emissions in targets.
Plug Power plans $6 bln hydrogen projects in Finland [Reuters]
- Plug Power Inc, a U.S. maker of hydrogen fuel systems, said it aims to build three plants in Finland costing some $6 billion to produce green hydrogen and ammonia for the European market. The company said it was in talks with potential financial investors and debt providers and aims to find industrial partners to secure offtake for its planned production ahead of a final investment decision in 2025 or 2026.
Hong Kong aims to raise $4 bln-$6 bln in green bonds [Reuters]
- Hong Kong’s government is aiming to raise $4 billion to $6 billion in a multi-currency green bond deal. The deal consists of 3-, 5- and 10-year dollar green bonds, according to a term sheet seen by Reuters. Investors had already lodged orders worth $9 billion for the U.S. dollar tranche, according to a bookrunner’s message seen by Reuters. The deal is the second green bond carried out by the city this year after it raised $5.75 billion worth of bonds in dollars, euros and green bonds in January.
Lucid raising $3 billion with more money from Saudi owners [Bloomberg]
- Lucid Group Inc. is raising about $3 billion in a new equity offering with the majority of the money coming from the electric vehicle maker’s Saudi owners after a more than 60% stock slump in the last year. The shares plunged more than 7% in extended trading. The company announced the raise along with a corresponding investment by its owners — Saudi Arabia’s Public Investment Fund — in a statement, confirming an earlier Bloomberg News report. PIF, the kingdom’s largest sovereign wealth fund, is purchasing $1.8 billion of the stock in a private placement.
Sustainable packaging solutions firm Stora Enso raises €1 billion ($1.07b) via green bonds [Mercom]
- Renewable materials-based paper and packaging solutions company Stora Enso has issued two green bonds worth €500 million (~$536 million) each under its Euro Medium Term Note program. These bonds will be listed on the Luxembourg Stock Exchange. These bonds aim to raise funds for eligible projects and assets that contribute to the transition towards a low-carbon and environmentally sustainable society, aligning with Helsinki-based Stora Enso’s sustainability agenda and goals. The eligible asset categories include renewable energy, waste to energy, energy efficiency, and pollution control.
- Perusahaan Listrik Negara (PLN) is seeking an investment of $700 million to install solar panels of 200 MW capacity in a bid to reduce carbon emissions and replace diesel power generators. PLN aims to achieve net zero carbon emissions by the year 2060 and has 4.68 GW of installed solar panels between 2021 and 2030. 200 MW solar panels will be the first phase among other phases of a long-term plan. Under the Just Energy Transition Partnership (JETP), various countries have pledged $20 billion in private as well as public financing to help Indonesia transition to renewable and clean energy.
First Abu Dhabi Bank set to raise $600mln with green bonds [Zawya]
- First Abu Dhabi Bank (FAB) is set to raise $600 million from an offering of five-year green bonds. The United Arab Emirates' biggest lender sold the bonds at 95 basis points (bps) over U.S. Treasuries tightened 25 bps from initial guidance after demand topped $1.4 billion. Proceeds will be used to fund environmental projects eligible under FAB's Sustainable Finance Framework.
World Bank OKs $400m for Dominican Republic’s green energy [Mirage News]
- The World Bank approved a US$400 million loan to support the Dominican Republic Government’s measures to broaden transparency, accountability, and efficiency in the energy sector, increase access to reliable and affordable energy, and support the transition to cleaner, low-carbon energy sources.
Czechia's Solek raises USD $379m for solar portfolio in Chile [Renewables Now]
- Czech solar energy specialist Solek Holding has raised USD $379 million (EUR 353.2m) in total proceeds from a bond sale and other forms of borrowing to finance its solar photovoltaic portfolio in Chile and support expansion plans. Solek said that it has around 284 MW (direct current) of utility-scale and distributed generation solar in Chile, and more than 400 MW of projects in development stage in Latin America.
Quebec, Ottawa pledge $300 million for GM electric car battery component plant [Lethbridge News Now]
- The governments of Quebec and Canada are announcing $300 million in funding for a factory that will make components for electric vehicle batteries in Bécancour, Que. The $600-million factory, a joint project between automaker General Motors and South Korean industrial materials maker POSCO Future M, was first announced by the companies last year. The factory will manufacture cathode-active materials, a key component of lithium-ion batteries found in electric cars, and is expected to employ around 200 people when it opens in 2025.
Ola Electric raises USD $300m funding at USD $6b valuation [Economic Times India]
- Ola Electric, an e-scooter manufacturer started in 2019, has secured USD $300m in its latest funding round, which will push up its valuation to USD $6b. The business will increase production capacity of electric two-wheelers from 0.5 million to 2 million per year using the money from the most recent acquisition.
Qantas Group launches USD $260m climate fund [CAPA]
- Qantas Group launched an AUD400 million ($260m) climate fund, an investment to develop solutions needed to meet sustainability targets. The fund combines AUD290 million jointly committed by Qantas and Airbus in June 2022 and a further AUD110 million Qantas Group investment in sustainability projects and technologies. These include sustainable aviation fuel (SAF), "high integrity" offsets, carbon removal technology and efficiency and waste reduction.
$150 million in commitments closed for Catalyst IV [Pulse 2.0]
- Catalyst Funds has announced the closing of its fourth fund Catalyst IV – which will manage assets of $150 million. Catalyst Funds now have a total of $450 million in managed assets. This new fund – which has already invested in three companies: Curalife, Addionics and Nexar – will invest in growth companies in various sectors including cybersecurity, life sciences, mobility, climate tech, food tech, and renewable energy. The partners in Catalyst include Edouard Cukierman, Yair Shamir, Boaz Harel and Lisya Bahar-Manoah, Luc Muller.
Sun King closes USD $130m off-grid solar payments securitisation [Renewables Now]
- Kenya-based off-grid solar products provider Sun King, previously called Greenlight Planet, announced it has closed on a first-of-its-kind USD $130 million (EUR 121.6m) bank-led securitisation of existing and future customer payments for its solar products. The transaction is aimed at facilitating access to green and affordable solar systems and paves the way for future African securitisation deals.
- Singapore-based venture capital firm TRIREC announced the launch of a new fund in partnership with Thai energy tech company INNOPOWER for decarbonization investments. The fund, Energy Ignition Ventures, has a minimum fundraising target of $100 million. Energy Ignition Ventures has secured an undisclosed initial capital commitment from the two partners. It will invest in growth-stage companies, from Series B stage onwards, with a clear decarbonization impact, proven product-market fit, and early commercial traction in five sectors that are key emitters of greenhouse gasses—food and agriculture, mobility, buildings, industries, and energy.
Research, Frameworks, & Case Studies
IMF, others should give $100 billion climate foreign-exchange guarantee
- A meeting in Paris next month will lay out a $100 billion plan to drive more money into climate and development finance in poorer countries by providing currency guarantees to investors. They note that the idea would rely on the firepower of the International Monetary Fund (IMF) and other multilateral development banks (MDBs), and forms part of growing efforts to reform the international financial system. It would see the IMF and other MDBs "cut the excessive macro-risk premia on developing countries with $100 billion per year of foreign exchange guarantees", for financing in more volatile domestic currencies rather than the dollar or euro. The guarantees would be for "just green transition investments", which could include "green" bonds focused on environmentally friendly projects as well as others such as ocean-focused "blue" bonds and sustainability-linked bonds.
- A new report co-authored by George Peridas of the Lawrence Livermore National Laboratory (LLNL) and Benjamin Grove of the Clean Air Task Force examines the economic viability of carbon capture and storage (CCS) projects in California and finds that several classes of projects are viable today. They say these can help the state meet its climate goals and hold a sizable potential to benefit host communities and landowners — provided project proceeds are shared fairly. Those classes of projects that are not viable today may become viable under new policies that are well within the bounds of existing programs and precedent.
Nature-based Solutions
Deals and commitments above $1m
Individual Deals & Market Watch
World Bank approves $176 million loan for Philippine fisheries project [BusinessWorld]
- The multilateral lender said its board of executive directors gave the go signal for the Philippine Fisheries and Coastal Resiliency Project (FISHCORE), which aims to improve fisheries management and production. FISHCORE aims to widen opportunities for fishery products, ensure a steady supply of fish for national food security, and boost competitiveness of small and medium fishery enterprises, the World Bank said. The project is expected to positively impact over 1.15 million fisherfolk, small-to-medium businesses, and residents in coastal communities.
Biden-Harris administration announces $161 million for landscape restoration [DOI]
- The Department of the Interior announced plans to infuse $161 million into ecosystem restoration and resilience on the nation’s public lands as part of President Biden’s Investing in America agenda. This work, led by the Bureau of Land Management, will focus on 21 “Restoration Landscapes” across 11 western states and will range from restoring wildlife habitat in the sagebrush steppe of the high desert to re-creating wetland meadows to repairing watersheds on former industrial timberlands.
- The UK government has awarded £30 million ($37.4m) in funding to over 50 innovative farming projects that will help agriculture move towards net zero, bolster food production and create more resilience and sustainability in the industry. These projects will focus on genetics research to reduce methane emissions in cattle, research into the use of drones and AI to monitor livestock, and the development of biopesticides using fungal strains to help tackle pests in wheat crops.
Canada launches $36.6 million aquatic invasive species fund [The Fish Site]
- Joyce Murray, Minister of Fisheries, Oceans and the Canadian Coast Guard, has launched the new Aquatic Invasive Species Prevention Fund (AISPF), which aims to increase awareness of, and to take action against, the threats posed by aquatic invasive species amongst Canadians - including boaters, anglers, aquarium owners and aquaculture operators. The AISPF aims to strengthen partnerships between the federal government, provinces and territories, Indigenous communities, stakeholders and the general public. These partnerships will facilitate on-the-ground, preventative actions against aquatic invasive species as well as education, outreach, detection and response activities.
B.C. government to provide additional $25 million for marine restoration projects [The Star]
- British Columbia’s Environment Ministry has announced another $25 million in funding for coastal cleanup and restoration of the marine environment. This brings its total investment for the Clean Coast, Clean Waters Initiative Fund to about $50 million. Environment Minister George Heyman told a news conference that debris from more than 4,600 kilometers of shoreline has been removed so far, while creating more than 1,700 jobs.
California grants $20.4 million for salmon habitat restoration [undercurrentnews]
- The US state of California is granting $20.4m to 15 projects aimed at restoring salmon habitat and restoring lost wetlands, according to a release from the California Department of Fish and Wildlife (CDFW).
Ontario government invests $19.6 million in innovative Forest Biomass Program [Net News Ledger]
- The Ontario government is investing $19.6 million to boost the economy and encourage innovation in the forest sector with the launch of a new Forest Biomass Program. This application-driven initiative is designed to harness the economic potential and environmental benefits of new and emerging uses of underutilized wood and mill by-products, otherwise known as forest biomass. Informed by feedback from the public, Indigenous communities, and industry stakeholders, the program aims to provide targeted support to cultivate Ontario’s forest bioeconomy.
Lewis Hamilton-backed Neat Burger secures $18 million Series B [green queen]
- The U.K.-based Neat Burger, the plant-based restaurant chain supported by influential figures like Lewis Hamilton and Leonardo DiCaprio, is set to expand its global reach following a successful $18 million Series B fundraising round. Since its launch in 2019, Neat Burger has rapidly grown to become one of the world’s fastest-growing plant-based food groups and has garnered a reputation for its appeal to both flexitarian and plant-based consumers.
IFC invests $13m to support ecotourism and conservation in Sub-Saharan Africa [Business Post]
- The International Finance Corporation (IFC) has announced a $13 million investment in the Africa Conservation and Communities Tourism Fund (ACCT Fund) to support the post-pandemic recovery and sustainable growth of sub-Saharan Africa’s ecotourism sector. The investment will support ecotourism businesses in and around conservation areas in East and Southern Africa, with a focus on South Africa, Botswana, Kenya, Namibia, Tanzania, and Zambia.
USAID launches $8.2 million Indonesia coffee and cacao agroforestry project [Daily Coffee News]
- The United States Agency for International Development (USAID) is leading a new $8.2 million project designed to improve environmental sustainability, climate resiliency and market access among coffee and cocoa/cacao farmers in rural Indonesia. The project is called Landscape Approach to Sustainable and Climate Change Resilient Cocoa and Coffee Agroforestry, or LASCARCOCO.
- The Pennsylvania Department of Environmental Protection (DEP) announced funding for 16 environmental restoration projects on abandoned mine lands, totaling $7.8 million dollars. These projects, which are being funded as a result of the Infrastructure Investment and Jobs Act (IIJA), primarily focus on the reclamation of abandoned mine land (AML), abatement of acid mine drainage (AMD) through reclamation, and/or treatment of AMD through the construction, operation, and/or maintenance of an AMD treatment facility.
- Bene Bono, the startup that saves organic fruits and vegetables rejected by major supermarkets for aesthetic reasons, is commencing its operations in Barcelona after successfully raising €7 million ($7.5m) in funding. The primary objective of the company is to rescue and salvage over 7 tonnes of imperfect fruits and vegetables every week, contributing to the reduction of unnecessary food disposal.
Noyo Harbor receives $3.2 million for climate-informed revitalization project [The Mendocino Voice]
- A new $3.2 million Community Economic Resilience Fund (CERF) grant, secured in a partnership with West Business Development Center, will provide a new ice house to support and expand the all-weather port’s 80-vessel fleet, facilitate skill-building for marine entrepreneurship, and create a fish market incubator to underpin Fort Bragg’s “blue economy” goals.
- Malcolm Noonan TD, Minister of State for Heritage and Electoral Reform, has announced a combined €2.7m in funding for local biodiversity projects. Over €2.5 million is being awarded to local authorities to carry out biodiversity projects through the Local Biodiversity Action Fund (LBAF) and €193k is being granted to the natural history recording community through the Small Recording Grants scheme.
Pea protein project receives £1m ($1.2m) to reduce UK reliance on soya [Food Matters Live]
- National innovation agency Innovate UK has granted £1 million to a ‘Pea Protein’ project to develop homegrown flavorless peas that can reduce the imports of soya into the UK. The collaborative project will be led by the research division of agricultural grass and forage seed company Germinal, Aberystwyth University’s Institute of Biological, Environmental and Rural Sciences (IBERS), the Processors and Growers Research Organisation (PGRO), and the John Innes Centre (JIC) in Norwich.
- In a critical move towards advancing precision agriculture, AgTech startup Picketa Systems has successfully closed a CAD 1.445M Seed investment round. The funding will broaden the development and deployment of their real-time plant tissue analysis technology, called LENS™, Leaf Evaluated-Nutrient System. This solution allows farmers and agronomists to diagnose real-time, geo-located, nutrient concentrations. This information aids growers to minimize fertilizer applications while optimizing crop production. The new LENS™ is being used in-field by 10 leading agronomists across Canada and the United Kingdom in 2023.
Research, Frameworks, & Case Studies
- The study aims to identify the most affected stocks by climate change and more vulnerable countries in the region. They found that Egypt, Tunisia, and Libya are the most vulnerable countries due to their comparatively high exposure to global warming and low adaptive capacity. At the same time, Slovenia, France, and Croatia have the lowest vulnerability because of their low exposure and sensitivity and remarkably high adaptive capacity. The southern Mediterranean countries would be the most vulnerable to climate-induced effects on marine fisheries. They argue that the region needs adequate and adopted on-time adaptation and mitigation policies to lessen potential risks to harvested species and stocks and guarantee the contribution of fisheries to the economy and food security in the long-term.
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