Net Zero Investor 6/26 - 7/2

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

Korea gives a $13 billion boost to the global green-bond boom [Bloomberg Green]

• The South Korean government is considering a green bond sale abroad, in what would be the latest deal from a country that’s become one of the world’s most active issuers of the sustainable debt.

Global Carbon Management Software Market value to increase by $ 8.60 Bn between 2021-2025 | Technavio [Cision]

• The carbon management software market is expected to grow by USD 8.60 billion during 2021-2025, according to Technavio. The report offers a detailed analysis of the impact of the COVID-19 pandemic on the carbon management software market in optimistic, probable, and pessimistic forecast scenarios.

Eat Just to pursue potential IPO to the tune of $3 billion [Vegconomist]

• After recently raising $170 million for the expansion of its cell-based meat division GOOD MEAT, San Francisco startup Eat Just is considering making moves towards an IPO in Q4 of this year or Q1 of the next. With a target valuation of $3 billion, the IPO could potentially establish Just Eat at the forefront of the cell-cultured meat revolution.

LG Chem floats US$1 bln in green bonds [Yonhap News Agency]

• South Korea's leading chemicals maker LG Chem Ltd. said Tuesday, June 29th, it has issued global green bonds worth US$1 billion to finance more investments in eco-friendly businesses.

Enlight to buy majority of solar developer Clenera at EV of USD 433m [Renewables Now]

• Israeli renewables developer Enlight Renewable Energy Ltd (TLV:ENLT) has sealed a definitive deal to take control of US solar and storage company Clenera LLC at an enterprise value of up to USD 433 million (EUR 364m).
• Enlight has agreed to buy a 90% stake in Clenera and leave the remaining shares to the founders of the US firm, namely Jason Ellsworth and Adam Pishl. The buyer will make upfront payments of USD 158 million along with future performance-based payments, it said.

NKT awarded EUR-280m Dogger Bank C export cables job [Renewables Now]

• Danish cable maker NKT A/S (CPH:NKT) today confirmed the award of the export power cable contract for the 1.2-GW Dogger Bank C offshore wind project in the UK, which is the third phase of the Dogger Bank offshore wind farm.

Meyer Burger raises almost EUR 220m from share, bond placements [Renewables Now]

• Meyer Burger Technology AG (SWX:MBTN) announced today it has successfully raised close to EUR 220 million (USD 260.6m) through the placement of shares and green bonds.
• Specifically, the solar panel manufacturing newcomer has completed a CHF-80-million (USD 86.3m/EUR 72.9m) private placement of 155.34 million newly issued registered shares at CHF 0.515 apiece, the proceeds of which will be spent on new investments.

Turntide Technologies completes $225 million financing [Turntide]

• The new financing accelerates Turntide’s efforts to attack climate change by reducing carbon emissions in some of the most challenging and critical industries including commercial buildings, agriculture, and transportation. Turntide’s patented Smart Motor System™ may reduce energy consumption by nearly 64% and is free of the environmentally damaging rare earth minerals that most higher-efficiency permanent magnet motors require.

Mirova’s Land Degradation Neutrality Fund exceeds USD200m of commitments for final close [Property Funds World]

• The LDN Fund, promoted by the United Nations Convention to Combat Desertification, and independently managed by Mirova, was launched in 2017, as part of One Planet Summit’s commitments to mobilise public and private capital in order to provide long-term financing to land-based projects that meet strict environmental and social standards. The fund invests in enterprises involved in sustainable land use – agroforestry, regenerative and sustainable agriculture, sustainable forestry on degraded lands, etc – and aims to improve their sustainability and efficiency.

Danone : Launch of a new Livelihoods Carbon Fund with €150 million first close [Market Screener]

• With a first closing of €150 million (and more to be invested in future closings), LCF3 aims at improving the lives of 2 million people while delivering up to 30 million carbon offsets over the entire duration of the fund.

China’s Baotou Steel strikes 50-mln tonne forest carbon offset deal for $155mln [Carbon Pulse]

Egypt's CIB issues $100 mln green bonds, first for private sector [AhramOnline]

• Egypt’s Commercial International Bank (CIB) said on Wednesday, June 30th, it has opened subscription for the first green bond to be issued in the local market after having received initial approval from the Financial Regulatory Authority (FRA) on 21 June.

Forestry platform to invest €50m acquiring harvesting rights [Independent Westmeath]

• A new forestry investment platform, Family Tree Impact Investments (FTI) recently launched plans to deploy €50m into the private forest estate over the next three years.
• The FTI platform, operated by sustainable forestry manager NewGen Forestry, will acquire forestry harvesting rights from existing plantation owners, both farmers and private forest owners.

Macro Commitments

Wellcome pledges £29bn investment fund will be carbon zero by 2050 [FT]

• Wellcome, the £29bn endowment foundation, has pledged that its vast portfolio of investments in shares, hedge funds, private equity and property will become carbon net zero before 2050, the largest such pledge by a UK charity.

UK's Sunak plans to announce 15 bln stg green savings scheme for public -The Times [Reuters]

• British Finance Minister Rishi Sunak is expected to announce plans for 15 billion pounds ($21 billion) green savings bonds, allowing people to invest in renewable energy projects such as wind and solar power, The Times reported on Wednesday June 30th.

ESA to invest £10bn towards net zero target [letsrecycle.com]

• The Environmental Services Association (ESA) has on June 30th set a target for the sector to reach net-zero carbon emissions by 2040, a decade earlier than the government’s deadline.
• The ESA — the trade association representing the UK’s resource and waste management sector — says this would reduce the UK’s total greenhouse gas emissions by 8%.

Generali to make green investments of up to 9.5 billion euros in 2021-25 [Reuters]

• Under the new strategy Italy's top insurer aims to fully phase out investments in companies that operate in the thermal coal sector by 2030 in the OECD countries and by 2040 in the rest of the world, it said in a statement.

APG to double forestry and Ag investments to between €3-€5B [Global Ag Investing]

• APG, the largest pension provider in the Netherlands, with approximately €583 billion (US$695 billion) under management as of April 2021, is planning to expand its investment in forestry and agriculture from its current €1.8 billion (US$2.15 billion) to €3-€5 billion (US$3.58-$5.96 billion) over the coming five years.

China’s Envision to build Renault $2.4 billion battery plant [Bloomberg]

• China’s Envision Group plans to spend as much as 2 billion euros ($2.4 billion) on a battery plant in northern France to power an affordable range of Renault SA electric vehicles.
• The deal is part of the European carmaker’s EV strategy that will also see it acquire a stake of slightly more than 20% in a year-old French startup called Verkor for higher-performance power packs destined for larger and premium models, according to a Renault statement.

Nissan, Envision to create $1.4 billion U.K. EV-making hub [Bloomberg]

• Nissan will spend as much as 423 million pounds to produce a new all-electric crossover vehicle at its Sunderland plant in the north of England and Envision AESC will invest 450 million pounds to expand battery-cell making, the carmaker said Thursday, July 1st, in a statement.

Deloitte shifts £1bn pensions to sustainable fund [IPE News]

• Deloitte has introduced a new default pension fund focusing on sustainability for its £1bn (€1,7bn) pension scheme covering 35,000 members.

Investors commit EUR 800m to CIP's next-gen energy transition fund [Renewables Now]

• Copenhagen Infrastructure Partners (CIP) has accumulated EUR 800 million (USD 953.5m) in commitments for its latest fund that will focus on green energy infrastructure and decarbonisation projects.

World Bank approves $630M for China environmental projects [China.org]

• The World Bank will provide 430 million dollars of loans for the China Plastic Waste Reduction Project to help improve plastic-waste management and reduce plastic pollution from municipal solid waste, according to the bank.
• The bank has also approved a 200-million-U.S. dollar loan to support the establishment of a Green and Low-Carbon Investment Fund to help catalyze private capital and expand the supply of equity financing to green businesses and projects in China.

BMW i Ventures announces new $300 million fund to invest in sustainable technology [Tech Crunch]

• BMW i Ventures, the venture capital arm of BMW Group, has announced a new $300 million fund to further its investment in technologies that make transportation, manufacturing and supply chains more sustainable.

Japan’s NYK Line plans ¥20bn ($129mln) climate transition bonds [Argus Media]

• Japanese shipping firm NYK Line is planning to issue the country's first transition bonds, targeting to raise around ¥20bn ($179mn) for investment in climate transition efforts, such as development of LNG- and LPG-fuelled vessels, and carbon-neutral projects like ammonia-fuelled and hydrogen fuel-cell vessels.

Pathways, Frameworks, Case Studies, Research, Climate Science

‘Nature-smart’ policies could boost global GDP by up to $150bn in 2030, says World Bank [Responsible Investor]

• The introduction of ‘nature-smart’ policies have the potential to increase global GDP by between $50-$150bn in 2030 compared with a business-as-usual scenario, according to a new report by the World Bank.
• The Economic Case for Nature, which was carried out in partnership with the University of Minnesota and Purdue University, explains countries need to internalise the value of nature in decisions at all levels and implement a series of policies that could help to reduce the risk of ecosystem collapse.

WWF warns of €54bn of lost revenues, as reports say shipping, housing and transport will be added to scheme [Responsible Investor]

• A potential €54bn of revenues were "lost or forgone" in the EU’s carbon market in the 2013-19 period because of the free allocation of carbon allowances, according to new analysis from WWF.

EU investment funds face €62bn losses under worst case NGFS climate scenario, says ECB (amended) [Responsible Investor]

• EU investment funds could lose up to €62bn over the next 15 years if climate change is not kept in check, the European Central Bank (ECB) has warned.
• In addition, climate risk is concentrated among EU banks, said the ECB, with 70% of credit exposure to firms subject to physical climate risks concentrated in the portfolio of only 25 banks.

China: consumer awareness reaches 90% for plant-based protein [Vegconomist]

• According to the China Plant-based Protein Topical Report from The NPD Group, plant-based foods are becoming more available and appealing as Chinese consumers are generally seeking more protein in their diets.

Over 70% of consumers want animal-free dairy cheese, study shows [Green Queen]

• In what is the first large-scale consumer acceptance study on precision-fermentation-made animal-free dairy products, researchers revealed a surprisingly high level of enthusiasm. The research, published in the journal Frontiers in Sustainable Food Systems, found 71% of respondents were willing to buy animal-free dairy cheese, while 79% were willing to try these products.

These 553 steel plants are responsible for 9% of global CO2 emissions [Carbon Brief]

• To understand the scale of the problem, Global Energy Monitor has mapped 553 steel plants representing 82% of the world’s installed capacity, as well as 42 proposed developments.
• Carbon Brief published the findings June 29th in their first comprehensive report on the sector, based on their recently released Global Steel Plant Tracker (GSPT).
• Steel sector may be saddled with up to $70 bln stranded assets [Reuters]
• The global steel industry may have to write down up to $70 billion in assets in the coming years because it is still building new blast furnaces using coal that will become obsolete as the world cuts carbon emissions, a report said on Tuesday.

Up to 410 million people at risk from sea level rises – study [The Guardian]

• The paper, published in Nature Communications, finds that currently 267 million people worldwide live on land less than 2 metres above sea level. Using a remote sensing method called Lidar, which pulsates laser light across coastal areas to measure elevation on the Earth’s surface, the researchers predicted that by 2100, with a 1 metre sea level rise and zero population growth, that number could increase to 410 million people.

Development bank climate finance spending hit $66 bln in 2020 - report [Reuters]

• Spending on climate finance by eight of the world's major multilateral development banks rose to $66 billion in 2020 from $61.6 billion in 2019, with the majority committed to poorer countries.

Over $100 billion raised via sovereign green bonds globally- Linklaters [Nasdaq]

• Nearly 100 billion pounds ($138 billion) has now been raised via sovereign green bonds globally with European nations accounting for 90% percent of the issuance, according to a study by law firm Linklaters released on Wednesday June 30th.

Mdbs' climate finance rose to $66 billion in 2020, joint report shows [All Africa]

• Climate finance committed by major multilateral development banks (MDBs) rose to a total of $66 billion last year from $61.6 billion in 2019, according to the 2020 Joint Report on Multilateral Development Banks' Climate Finance, published today. Of this, 58 per cent - or $38 billion - was committed to low- and middle-income economies.

Global Carbon Credit Market is estimated to account for US$ 2,407.8 Mn by end of 2027; owing to increasing global warming impact, Says Coherent Market Insights (CMI) [GlobeNewsWire]