Net Zero Investor 6/19 - 6/25

We’re Hiring Head of Climate Funds Research and Evaluation

• Build and maintain the definitive digital resource on funds, vehicles, large projects, prizes and incubators that are investing (or driving investment) in climate solutions aligned to science-based roadmaps to net zero.

Individual Deals and Market Watch

Volksbank’s €500 million senior non-preferred green bonds issuance [Global Legal Chronicle]

• The notes have a maturity of 5 years and carry an 0.25% interest rate. It is de Volksbank’s second issuance of senior non-preferred notes, following a first issuance of € 500 million, in March 2021 on which NautaDutilh also assisted de Volksbank.

EBRD, ADB anchor investors in Georgian Railway’s $500mn green bond [BNE Intellinews]

• The Asian Development Bank (ADB) and European Bank for Reconstruction and Development (EBRD) have invested a combined $70mn in the 4% 2028 green bond issue released by Georgian Railway. It started trading on the main market of the London Stock Exchange on June 18.
• The $50mn invested by the EBRD and the $20mn placed by the ADB are a boost for the $500mn bond issued by Georgian Railway, the first green bond issued by a Georgian state-owned company.

ABN Amro launches €425 million fund for sustainable impact companies [Finextra]

• ABN AMRO SIF will make private equity investments of 4 to 30 million euros in companies that have a proven business model and that are ready for the next phase of their growth. The fund will also make venture capital investments ranging from 500,000 euros to 4 million euros in companies with a proven concept.

Chile's Latin America Power issues USD-404m green bond [Renewables Now]

• Santiago-based renewable energy producer Latin America Power (LAP) has issued USD 403.9 million (EUR 339.8m) 5.125% senior secured notes to refinance the debt tied to its two wind farms in Chile.

NextEnergy Capital raises USD 232m more for NextPower III solar fund [Renewables Now]

• London-based NextEnergy Capital Group announced on June 22nd that investors have committed a further USD 232 million (EUR 195m) to its NextPower III solar fund, bringing its capital to USD 530 million.

Climate Transition Capital launches $226 million SPAC [Reuters]

• Investment platform Climate Transition Capital said on Tuesday it will launch a 190 million euro ($226 million) Special Purpose Acquisition Company (SPAC) aimed at investing in companies that are "pioneering" climate transition.

Motif FoodWorks raises $226M to develop “Breakthrough Solutions” for plant-based foods [Vegconomist]

• The round was led by Ontario Teachers’ Pension Plan Board, along with funds and accounts managed by BlackRock. Other investors included AiiM Partners, Wittington Ventures, Rethink Food, and Rage Capital. The round brings the total amount of funding raised by the company to $345 million.

Berkeley Energy raises €130 million for second Africa Renewable Energy Fund [Impact Alpha]

• Berkeley Energy is looking to build hydro, wind and solar projects, as well as battery storage facilities, to meet Africa’s accelerating electricity demand.

Concentrating solar startup Heliogen raises $108 million in two funding rounds [Clean Technica]

• It’s been about a decade since we have seen this large a deal in concentrating solar, Heliogen, which is focused on replacing fossil fueled process heat in industry, has raised $108 million in funding across two rounds. New investors included steel and mining company ArcelorMittal, venture capital firm Prime Movers Lab, Canadian venture capital fund Ocgrow Ventures, Edison International, A.T. Gekko and more.

INVL Sustainable Timberland and Farmland Fund II holds second close at EUR 51 mln [Globe News Wire]

• The INVL Sustainable Timberland and Farmland Fund II (“STAFF II’), today announces that it has successfully raised a further EUR 18.5 million via a second offering and has reached a size of EUR 51 million towards its overall EUR 100 million target. In its initial offering, the fund raised EUR 32.45 million.
• STAFF II was established in November 2020 and is a vehicle dedicated for investment targeting sustainably managed forest and agricultural land with high-growth potential in the Baltic Sea region and across Central and Eastern Europe.

Macro Commitments

Asia Pacific seen to invest USD 1.3trn in renewables in 2021-2030 [Renewables Now]

• Asia Pacific investments in wind and solar generation could reach USD 1.3 trillion (EUR 1.09trn) in the decade to 2030, doubling compared to the previous decade, according to Wood Mackenzie.

Japan pledges $10 bln financial support for Asia's energy transition [Reuters]

• Japan on Monday June 21st pledged to offer $10 billion financial aid for decarbonisation projects in Asia, such as renewable energy, energy-saving and conversion to gas-fired power generation from coal-fired power to help with an energy transition.

Indian refining giant Reliance unveils $10-bln green energy plan [Reuters]

• Reliance Industries (RELI.NS), operator of the world's biggest refining complex at Jamnagar in western India, will invest $10.1 billion in clean energy over three years in a drive to become a net carbon zero company by 2035.

AES Brasil presents USD-1.2bn wind project in Rio Grande do Norte [Renewables Now]

• Brazilian energy firm AES Brasil (BVMF:AESB3) plans to develop a gigawatt-scale wind project in Rio Grande do Norte state with an initial investment of BRL 6 billion (USD 1.2bn/EUR 1bn).
• Economic development secretary Jaime Calado reiterated that the project will boost the state wind capacity, currently at 5.1 GW, by 20%.

Canada seeks projects under USD-1.2bn fund to boost clean fuels production [Renewables Now]

• Canada on Monday June 21st officially launched its CAD-1.5-billion (USD 1.2bn/EUR 1bn) Clean Fuels Fund, opening a call for project proposals. The fund was announced in the country’s strengthened climate plan in December last year and is aimed at increasing the domestic production and use of low-carbon fuels.

Ikea and Rockefeller Foundations will give a combined $1 billion for clean energy [Bloomberg Green]

• In a move to kickstart the energy transition globally, the Ikea Foundation and the Rockefeller Foundation announced on June 21st that they will each donate $500 million to support distributed renewable generation projects in developing nations.

Greece's PPC to make grid upgrades with EUR 330m in EIB debt [Renewables Now]

• The EUR 330 million (USD 393.9m) will be used to upgrade its power distribution grid and facilitate the wider penetration of renewables. The 20-year loan will be disbursed through several financing contracts, the second one of which for EUR 100 million was signed on Wednesday of last week.

GEF Council Approves Over $280M for Biodiversity, Climate, Chemicals, and Water [IISD]

• The 60th meeting of the Global Environment Facility (GEF) Council adopted a Work Program worth USD 281.1 million, with eight stand-alone, full-sized projects on international waters, four on biodiversity, three on climate change mitigation, and two on chemicals and waste. In total, the funding will support 33 projects and three programs. In addition, the 30th meeting of the Council for the Least Developed Countries Fund (LDCF) and Special Climate Change Fund (SCCF) adopted a Work Program totaling USD 60.73 million for seven projects to address climate change adaptation priorities.

Vattenfall to back fossil-free investments with GBP-250m green bond [Renewables Now]

• Swedish state-owned utility Vattenfall AB has issued GBP 250 million (USD 349m/EUR 292.5m) worth of hybrid green bonds in a bid to finance renewable energy and energy-related projects.

Pathways, Frameworks, Case Studies, Research, Climate Science

WoodMac forecasts Australia’s low-carbon hydrogen export revenue to reach US$90 billion by 2050 [PV Magazine]

• Wood MacKenzie’s energy transition modelling is predicting a primacy in the future low-carbon hydrogen economy for Australia. Thanks to the country’s solar irradiance and renewable energy expertise, as well as its relative proximity to major off-taker markets, Australia could be looking at export revenues of up to US$90 billion by 2050.

Study: Investment in EV infrastructure could add $1.3 trillion to U.S. GDP [Public News Service]

• A new report from Advanced Energy Economy showed how investing $274 billion to electrify the nation's transportation system, including electric school busses, 18-wheelers, charging stations and more, would yield a five-fold return for the overall economy.

Electric vehicles seen reaching sales supremacy by 2033, faster than expected [Bloomberg]

• Consultant Ernst & Young LLP now sees EV sales outpacing fossil fuel-burners in 12 years in Europe, China and the U.S. -- the world’s largest auto markets. And by 2045, non-EV sales are seen plummeting to less than 1% of the global car market, EY forecast using an AI-powered prediction tool.

Commercial afforestation can deliver effective climate change mitigation under multiple decarbonisation pathways [Nature Communications]

• A study published in Nature Communications calculated the potential GHG mitigation of a UK national planting strategy of 30,000 ha yr−1 from 2020 to 2050, using dynamic life cycle assessment. Afforestation is an important greenhouse gas (GHG) mitigation strategy but the efficacy of commercial forestry is disputed. Even after heavy discounting of future product substitution credits based on industrial decarbonisation projections, GHG mitigation from harvested stands typically surpasses unharvested stands. Commercial afforestation can deliver effective GHG mitigation that is robust to future decarbonisation pathways and wood uses.

Changes in farming practices could reduce greenhouse gas emissions by 70% by 2036 [Argonne]

• Published in Proceedings of the National Academy of Sciences of the United States, Scientists from the U.S. Department of Energy’s Argonne National Laboratory identified a combination of readily adoptable technological innovations that can significantly reduce emissions and fit within current production systems and established grain markets.
• The study: Novel technologies for emission reduction complement conservation agriculture to achieve negative emissions from row-crop production

China’s $113 billion green bonds caught in jumble of rules [Bloomberg Green]

• Only about half or less of Chinese green securities meet global standards for what counts as green, according to Xie Wenhong, China program manager at Climate Bonds Initiative. The international not-for-profit organization publishes screening standards for green debt that are followed by many investors.

CDP: Record number of investors with $17tr in assets call on corporates to disclose environmental data [BusinessGreen]

EU’s flagship R&D fund to launch €80 mln calls for carbon removals [Carbon Pulse]

More than half of funding to preserve and enhance forests has come in the three years up to 2020, still more is needed [Carbon Pulse]