Your Newsletter at a Glance
Note from the author: This past week has seen movement in commitments and investments abroad. The European Investment Bank and the Asian Development Bank have pledged up to $27bn for India’s green growth, Stellantis received $11bn from Canada for an electric vehicle plant, and Copenhagen Infrastructure Partners raised over $6bn for its latest fund focused on large-scale renewable energy infrastructure.
New nature-based solutions investments came out of the US-UK Windsor Summit with over $1.7bn funding projects aimed at reducing emissions. Also from the summit came the announcement of a partnership between Mitsui & Co and the Renewable Resources Group, with a joint goal of leveraging these new funds toward NbS.
Indonesian aquaculture startup eFishery netted $200mn reaching unicorn valuation, and Joyful Venture launched a $24mn fund focused on sustainable food technology startups to accelerate sustainable protein development.
Deal Count: This week covers almost $55bn in deals and commitments in climate finance and over $2bn in NbS around the world. Enjoy the 37 summaries below!
Climate Finance
Deals and commitments above $100mn
Market Watch
- The European Investment Bank (EIB) has pledged one billion euros to develop a large-scale hydrogen industry hub, while the Asian Development Bank (ADB) intends to provide $20-$25 billion over five years to support India's green growth during International Conference on Green Hydrogen (ICGH-2023), held between July 5 and July 7 in India. The World Bank has also approved $1.5 billion to aid India's low-carbon transition journey.
Stellantis gets $11bn from Canada, surpassing Volkswagen’s subsidy [Bloomberg]
- Prime Minister Justin Trudeau upped the ante on corporate subsidies in his bid to keep Canada competitive as US green incentives threaten to lure business investment stateside. His government reached an agreement with Stellantis NV this week on C$15 billion ($11.3 billion) in public support for an electric-vehicle battery plant, ending a standoff that began in May when the carmaker halted construction on the project.
Danish green energy investor CIP secures $6bn for new fund [Reuters]
- Danish green investment company Copenhagen Infrastructure Partners (CIP) has raised 5.6 billion euros ($6.13 billion) for its latest fund and expects to meet its full 12 bln euro target amid undiminished global investor appetite. The investors necessary to meet the overall target for its fifth flagship fund - Copenhagen Infrastructure V (CI V) - were lined up already and would make it the world's largest such dedicated fund, CIP said in a statement. The new fund will focus on greenfield investments within large-scale renewable energy infrastructure in North America, Western Europe and Asia Pacific, with a first U.S. onshore wind project sanctioned in June, CIP said.
Research
$50bn investment expected from Gulf states in five years in Pakistani agri initiative [Arab News]
- Pakistani Prime Minister Shehbaz Sharif said the South Asian nation expected around $50 billion investment in the next five years, primarily from Gulf states, under a new green initiative in the agriculture sector. Pakistan established a Land Information and Management System Center of Excellence ((LIMS-CoE) to enhance modern farming on over 9 million hectares of uncultivated state land, with Saudi Arabia providing an initial investment of $500 million to improve the country's irrigation system. The center will work in collaboration with Saudi Arabia, the United Arab Emirates, Qatar, Bahrain and China on various agriculture projects to enhance Pakistan’s exports.
The Liist, July 2023: Green twists on inclusive, place-based investing [Impact Alpha]
- Fund managers on this month’s Liist of impact funds currently raising capital are financing underserved communities and founders, climate justice and the green transition. Impact Alpha covers funds like LA Cleantech Incubator, Chicago Trend, Prethvi Ventures, Unitus Capital, BIX Capital, Ultra Capital Energy Transition Fund, and more.
Nature-based Solutions
Deals and commitments above $1mn
Market Watch
More than $1.7bn of nature-based solutions investment announced at US-UK Windsor summit [edie]
- At the summit, hosted at Windsor Castle, investors unveiled new funds for projects that will reduce emissions and improve climate adaptation globally, with a focus on developing and emerging markets in the Global South. Builders Vision announced a partnership with Mitsui & Co and the Renewable Resources Group, with the aim of leveraging more than $1bn for nature-based solutions. They will do so by identifying investable projects within or close to key supply chains, then collaborating with other investors and large businesses to promote the schemes.
Indonesian aquaculture startup eFishery nets $200mn at unicorn valuation [Tech Crunch]
- Indonesian aquaculture startup eFishery announced that it has netted $200 million in a Series D. The company says this makes it the first startup in the global aquaculture industry to pass a $1 billion valuation. Its goal is to reach one million aquaculture ponds in Indonesia by 2025 and expand overseas. The funding was led by Abu Dhabi-based 42XFund and included participation from Kumpulan Wang Persaraan (Diperbadankan), Malaysia’s largest public sector pension fund, Swiss asset manager responsibility and 500 Global. Existing investors Northstar, Temasek and SoftBank also returned for the round, with Goldman Sachs acting as an exclusive financial advisor to eFishery.
Joyful Venture launches $24mn fund focused on sustainable food technology startups [FoodNavigator]
- As the industry’s only LGBTQ+ and woman-led firm, Joyful Ventures launches its $24 million climate venture fund to accelerate sustainable protein development for pre-seed and seed stage startups around the world. The fund’s advisory team features industry founders and executives, including Bjorn Oste, Co-founder of Oatly, Dr. Sandhya Sriram, CEO of Shiok Meats, Ryan Bethencourt, Co-founder of Indie Bio and CEO of Wild Earth, and Arturo Elizondo, CEO of EVERY.
Research
- EU and national governments have committed £400mn to the development of alternative proteins, new Good Food Institute (GFI) figures have revealed. The ‘State of Global Policy’ report found that £315mn was invested in alternative proteins by European governments during 2022, and claimed that such products can reduce climate emissions by up to 92% compared to conventional meat. Global government funding for the sector doubled in the last year, with Denmark and the Netherlands breaking records for investment into the plant-based and cultivated meat sectors respectively.
Is plant-based innovation emerging as a solution & investable opportunity? [vegconomist]
- Vegconomist argues that, in the pursuit of alpha, some investors use a thematic approach. Most simply, thematic investing is a portfolio strategy that bases investment selections on a potentially macro long-term trend with implications across different sectors and industries. For example, investors might consider opportunities stemming from material changes in technologies, climate, regulations, energy sources, or global demographics. This article specifically examines a topic that spans many of those areas: trends in plant-based and alternative protein nutrition, including plant-based foods, precision and bio-mass protein fermentation, and cultivated meat, collectively referred to as plant-based innovation. That space has achieved impressive growth in recent years, and some analysts expect further expansion in the future. For example, Boston Consulting Group projected the alternative protein market—which includes plant-based meat, eggs, dairy, and seafood products—could reach $290 billion by 2035.
Climate Finance
Deals and commitments above $100mn
Individual Deals & Market Watch
- In line with the Mujib Climate Prosperity Plan, Copenhagen Infrastructure Partners (CIP) and Copenhagen Offshore Partners (COP) have submitted a $1.3 billion investment proposal to the Government of Bangladesh for developing a commercial offshore wind project off the coast of the Bay of Bengal. The utility-scale offshore wind project with an initial capacity of 500 MW is expected to be a key driver of Bangladesh's progression into a green nation. According to the press release, this offshore wind project in particular presents a unique opportunity for the country to maximize the utilization of its coastal resources, supporting the development of the 'Blue Economy'.
Australia consults on USD $1.3bn hydrogen program [Renewables Now]
- The Australian government launched consultation on the design of its AUD-2-billion (USD 1.34bn/EUR 1.23bn) Hydrogen Headstart program, which was announced in the 2023 federal budget and aims to back large-scale renewable hydrogen projects in the country. Australia wants to develop a strong green hydrogen industry as part of its ambition to become a renewable energy superpower. Hydrogen Headstart is seen as a key step towards unlocking these investments. It is expected to deliver up to 1,000 MW of electrolyser capacity by 2030 by underwriting some of the largest electrolyser projects in the world.
French renewables group plans €1bn ($1.1bn) of Irish green investments [Independent.ie]
- Neoen, a Paris-listed renewable energy company, has said it hopes to develop a pipeline of green energy projects worth €1bn in Ireland but that the country's planning and regulatory environment would need to change to help it deliver. Having invested around €100mn in Ireland to date, Neoen owns eight wind farms and three solar farms already supplying the Irish grid. Other projects representing around €100m have already been awarded to Neoen via successful tender processes, with work expected to start by the end of the year. Neoen, which has a market capitalization of over €4.15bn, operates in 16 countries across Europe, the Americas and Australia.
Seatrium secures $1.04bn green trade finance facility from OCBC [The Edge Singapore]
- Seatrium has secured a green trade finance facility from Oversea-Chinese Banking Corporation (OCBC) worth an estimated EUR 720 million ($1.04 billion). The facility, which comes with the issuance of a banker’s guarantee, is one of the largest syndicated financing solutions issued by a single bank for the maritime industry. The trade financing solution is aligned with internationally-recognised Green Loan Principles and will support Seatrium’s offshore renewable projects and decarbonisation efforts.
DOE to boost US hydrogen market with $1bn investment [Carbon Herald]
- The US Department of Energy (DOE) announced it will be making a $1 billion investment commitment for developing hydrogen production projects and guaranteeing sales of clean hydrogen on the market which is still in its infancy. The initiative is part of the Regional Clean Hydrogen Hubs program, which has the ambitious goal of creating 10 regional hubs across the country. In a bid to replicate the success of the photovoltaic industry, this program – funded by President Biden’s Bipartisan Infrastructure Law – will assist in laying the groundwork for a nationwide clean hydrogen infrastructure to reduce emissions in industries that need the largest amounts of energy.
Canada's TransAlta agrees USD$1bn buyout of renewables arm [Renewables Now]
- Canadian utility TransAlta Corporation announced that it has agreed to pay CAD 1.38 billion (USD 1.04bn/EUR 946m) to acquire the remaining 39.9% stake in independent power producer (IPP) TransAlta Renewables Inc in a push to simplify its structure and position the company for growth. RNW’s portfolio includes interests in 26 wind farms, 11 hydroelectric plants, eight natural gas generation facilities, two solar parks, one natural gas pipeline, and one battery storage project, totalling more than 2.96 GW of owned generating capacity. The combined company will have a consolidated development pipeline of 4.3 GW of clean electricity projects and early-stage investments in new technologies.
Iberdrola issues €850mn ($931mn) in green bonds to support renewable development [PVTech]
- Spanish electric utility Iberdrola has issued €850 million in green bonds to investors, to support the development of new renewable projects around the world. Iberdrola issued the bond with 142 investors providing the company with funding in exchange for returns in the future. Iberdrola set the credit spread of the bond at 60 basis points over the next ten years, which translates to a 3.625% interest rate for the bond’s backers. The funds will go towards what the company calls “green eligible assets”, that is to say renewable energy and power infrastructure projects covered under its green financing framework.
LeapFrog plans $500mn investment in Asian, African climate transition firms [Reuters]
- Sustainability-focused asset manager LeapFrog Investments said it plans to invest $500 million in companies addressing climate change in Asia and Africa, with projects it hopes will reach up to 50 million low-income people. The commitment was announced at the Climate Finance Mobilization Forum in Britain, attended by finance leaders, companies and philanthropic bodies with the aim of bolstering private capital flows to emerging economies. LeapFrog said in a statement that the money would target investments to accelerate the transition to a low-carbon economy in the built environment, energy, mobility and food sectors.
Over $420mn North American Forest Fund from Japanese investors kicks off [Carbon Credits]
- Sumitomo Forestry, a top Japanese forestry company, has launched a fund worth over $420 million to manage North American forests and create carbon credits. This move marks a significant step in the global fight against climate change. The fund, amassing over $420 million, is the joint effort of 10 Japanese corporations, including Sumitomo Forestry. Their aim is to help reduce global carbon emissions by investing in forest management. The nine other corporate investors of the fund include ENEOS Corporation, Osaka Gas Co., Tokyo Century Corp., Japan Post Holdings, Ltd., Nippon Yusen Kaisha, Fuyo General Lease Co., Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, and Unicharm Corporation. The fund, called “Forestry Fund I”, will buy and manage 130,000 hectares of forest mostly in North America by 2027. It will be managed by Eastwood Forests, an expert in US forest funds management, and will run for 15 years.
Canada pledges US$340mn to UN’s Green Climate Fund [Climate Home News]
- The Canadian government has promised C$450 (US$340m) to the United Nations’ Green Climate Fund (GCF) for projects cutting emissions and adapting to climate change around the world. Climate minister Steven Guilbeault confirmed at the Brussels press conference that the money will be taken from C$5.3 billion (US$4bn) of climate finance promised at Cop26 in Glasgow and will be spread over four years from 2024 to 2027.
Spring Lane Capital clinches $290mn for second sustainable infrastructure fund [Impact Alpha]
- The Boston- and Montreal-based firm will use the capital for debt and equity investments in green energy, waste, food and transportation projects and solutions. Spring Lane also announced a $56 million investment in Argo Development Partners, a developer of sustainable agriculture-based infrastructure such as biofuels, organic fertilizer and green ammonia. The new fund is nearly double the size of Spring Lane’s first fund, raised in 2019, and brings the firm’s total assets under management to $447 million.
Commercial International Bank SAE gets $250mn in loans with eye on green work [Bloomberg]
- Commercial International Bank SAE, Egypt’s largest private bank, secured $250 million in loans from the World Bank’s International Finance Corporation to support its capital and fund green projects. The first loan is a 10-year $150 million Tier 2 facility that aims to “provide capital support for the bank’s sustainable growth plans,” Heba Abdel Latif, head of financial institutions at the Egyptian lender, said in an interview. The bank also signed a 7-year $100 million loan to finance a pipeline of environment-friendly projects that include water treatment and efficiency, green buildings and renewables, as well as sustainable agriculture projects.
Prime Coalition’s Azolla Ventures raises $239mn to catalyze climate capital [Impact Alpha]
- Prime Coalition launched independently run Azolla in 2021 as a successor to its $50 million Prime Impact Fund. Azolla’s blended capital fund combines $80 million in philanthropic capital with $159 million in impact-aligned investment capital to boost promising early-stage climate solutions that cannot attract conventional investors. Dozens of investors backed the fund, including Grantham Environmental Trust, Cisco Foundation, smaller family offices, donor advised funds and private foundations, with some catalytic investors writing checks as small as $10,000.
Climate investment fund Wollemi Capital raises $220mn, enters CBA alliance [Business News Australia]
- Climate specialist investment firm Wollemi Capital has completed one of the country's largest Series A capital rounds of 2023 after raising $220 million, underpinned by an equity investment from the Commonwealth Bank of Australia. The firm was co-founded in 2021 by Macquarie Capital's former global head Tim Bishop and the former Asia head of Boston Consulting Group's corporate venturing unit, Paul Hunyor. The news comes as Australian climate tech startup founders aim to almost triple raisings across the sector to $1.5 billion over the next 12 months.
Foxconn announces $200mn EV charging equipment factory in Vietnam [Investment Monitor]
- Taiwan-based electronics contract manufacturer Hon Hai Precision Industry, which trades as Foxconn, has announced plans to invest $200m (T$6.26bn) to build a new plant in Quang Ninh province, Vietnam. The new factory will produce electric vehicle charging equipment and other electronic components. The facility is due to be completed in January 2025 and will have around 1,200 employees.
- Coca-Cola and eight bottling partners from around the world formed a $137.7 million venture capital fund that will focus on sustainability investments. Each of the nine entities, including Atlanta-based Coca-Cola, contributed about $15 million to the initiative. The bottlers collectively represent nearly half of Coca-Cola system volume globally. The companies said with carbon footprint as “a major priority,” the fund will initially focus on five key areas with the biggest potential impact. Those include: packaging, heating and cooling, facility decarbonization, distribution and the supply chain.
Suffolk Technologies raises $110mn for sustainable construction innovation [Impact Alpha]
- Suffolk Technologies has raised $110 million for an inaugural fund that will deploy between $1-$5 million million in early-to-growth stage tech startups developing sustainable and other innovative solutions to optimize the built-environment value chain. The venture fund will source some deals through BOOST, Suffolk’s accelerator program, which has graduated ventures like Moxion Power, which makes electric storage for construction sites, and WINT, which uses AI sensors to reduce water leaks.
Berkshire Bank allocates $100mn from first sustainability bond [Boston Business Journal]
- Berkshire Hills Bancorp, Inc., the parent company of Berkshire Bank, will allocate $100 million from its inaugural sustainability bond to affordable and workforce housing projects, green building development, and financial access and inclusion projects.
- The Inter-American Development Bank has signed an agreement to provide financial support of up to $100 million to the International Renewable Energy Agency’s Energy Transition Accelerator Financing platform. The IDB plans to co-finance renewable energy projects and energy transition technologies in Latin America and the Caribbean. The Etaf platform, also supported by the UAE, has surpassed its initial target of $1 billion by the end of the decade. The agreement is expected to provide a global baseline for renewable energy with a focus on solar, wind, hydropower, geothermal and other technology including battery storage.
Nature-based Solutions
Deals and commitments above $1mn
Individual Deals & Market Watch
'Recharge Pakistan' climate resilient project secures $77.8mn in funding [Daily Pakistan]
- Federal Minister for Climate Change Sherry Rehman announced that Recharge Pakistan, a climate resilient project, had been approved for funding of $77.8 million in funding. The project is a joint collaboration by Global Climate Fund (GCF), WWF and the Government of Pakistan, the project aims at building Pakistan’s resilience to climate change through Ecosystem-Based Adaptation (EBA) for Integrated Flood Risk Management. Recharge Pakistan will increase water storage and recharge through wetlands, floodplains, and hill-torrents management; promote climate-adapted community-based natural resource management and livelihoods, and forge a paradigm shift to scale up this approach.
- At its 36th Board meeting, the Green Climate Fund (GCF) granted US$22.4 million in funding for a flood management project targeting climate resilience in Haiti’s Trois-Rivières region. Supported by the United Nations Development Programme (UNDP), the project aims to reduce the risks associated with climate change-induced flooding through sustainable land management. More than 733,000 people are expected to benefit, while 25,440 hectares of degraded landscapes are to be restored through agroforestry and reforestation.
- German food biotech start-up BLUU Seafood says it has secured the necessary capital to focus on the regulatory approval of its first products. The latest Series A funding was led by Sparkfood, a subsidiary of Sonae, and by LBBW VC. Further participants in the round were Asian investor SeaX Ventures and other VCs such as Manta Ray Ventures, Norrsken VC, Delivery Hero Ventures, Innovationsstarter Fonds Hamburg GmbH, and Dr. Oetker. In total, BLUU Seafood has raised more than EUR 23mn since its founding three years ago.
Dubois County farm receives $15mn grant to expand climate-smart production [Inside Indiana Business]
- A Dubois County farm will use a $15 million grant from the U.S. Department of Agriculture to expand its own climate-smart initiatives and help other farmers in southern Indiana and northern Kentucky adopt regenerative farming practices. The grant focuses on climate-smart commodities, which are produced using agricultural practices that sequester carbon or reduce greenhouse gas emissions. St. Anthony-based Fischer Farms will use the funds over five years to enhance its regenerative agriculture practices in the Partnerships for Climate-Smart Commodities program.
- Northumberland is set to benefit from a new, high-tech food digester that will provide renewable energy from the county’s food waste. The county council’s strategic planning committee approved plans for the new £10 million anaerobic digestion facility. It will be built on the site of a composting and wood shredding site on Ellington Road in the village of Ellington, north of Ashington. Suez has said there is a national need to reduce food waste and to put any food that is wasted to good use. The facility will do that by turning food waste from across the region into ‘reliable, renewable energy’ as well as compost-like soil improver.
Research for new, climate-resistant rice strains begins with $10 million USDA backing [LSU Reveille]
- An LSU Agricultural Center professor and his team of 24 researchers have been backed by a $10 million grant from the USDA to start a four-year project to develop new climate-resistant strains of rice. According to the project’s leader, Dr. Prasanta Subudhi, Climate Resilient Innovations for Sustainable Production of Rice, or “CRISP-Rice,” is founded on two central ideas: Climate change is a real, imminent threat to crop production, and farmers need access to the tools and information necessary to mitigate it.
- The Department of Water Resources (DWR) announced $9.2 million in grants to five projects that will restore streams and creeks to more natural environmental conditions and reduce flood risk across multiple communities in California. The projects are funded by DWR’s Riverine Stewardship Program and Urban Stream Restoration Program, which deliver technical and financial assistance for the protection of listed fish species in combination with flood risk reduction and ecosystem enhancement of urban streams. The awarded projects are designed to promote community participation in the planning process, encourage public support for long-term management and increase public awareness of project benefits to the community, the environment, and the sustainability of California’s water resources.
- Gov. Ned Lamont recently announced that the State of Connecticut is awarding $8.8 million in grants through the inaugural round of the Department of Energy and Environmental Protection’s Climate Resilience Fund (DCRF).The governor's office said in this first round of funding, more than 90% of the funds will go to vulnerable communities that will feel the effects of climate change. These state awards will support 21 innovative climate resilience plans and projects across 17 Connecticut municipalities and councils of governments.
- Protein Industries Canada (PIC) announces it is offering $10mn CAD for food tech projects that use artificial intelligence to improve plant-based food production. The funds are aimed at accelerating the commercialization of new foods and ingredients while making Canada’s plant-based sector more efficient and sustainable. From now until March 31, 2026, PIC plans to invest $30 million into AI projects that wil benefit the plant-based and agrifood sectors. The amount invested in each project will depend on its proposed scope and impact.
Carbon startup Sensand raises $6mn to make carbon credits transparent for farmers [startupdaily.]
- Melbourne-based Sensand brings together agricultural land management, carbon project operations, and environmental markets on a single platform. The funding came from Robert Costa, chair of agricultural investment firm goFARM and his family fund, Costa Asset Management. The capital delivered the beta launch of Sensand’s Blockbase and Mintly technology platforms. Blockbase will enable farmers and landowners to measure and validate carbon sequestration and the impacts of their farming and forestry practices on natural capital. Mintly will enable market participants to leverage this verification data to bring high-quality credits to global carbon markets.
Livestock project awarded £2.8mn ($3.6mn) to ensure sustainability and efficiency [Meat Management]
- Following a Farming Innovation Competition hosted by the Department for Environmental Food and Rural Affairs (Defra) in partnership with Innovate UK, The Dancing with Daffodils project, which is being run by a consortium, will look at transforming the efficiency and sustainability of ruminant farming. The partnership organizations which include Rumenco, Agroceutical Products Ltd, Analox Group, Beneve Ltd, Bioextraction Ltd, Bangor University, CIEL (Centre for Innovation Excellence in Livestock), Grampian Growers Ltd, Scotland’s Rural College and Wynnstay, will combine their expertise during the project to address challenges relating to the sustainability of livestock farming.
- NetZeroNitrogen (NZN), a UK-based startup developing a nitrogen alternative for plants, has closed a $1.6 million pre-seed round of funding. German VC Revent and Zero Carbon Capital led the oversubscribed round; an “Asian, climate-focused, strategic investor and a group of angels” also participated, including ex-Moderna CSO Tony de Fougerolles. NZN also received a recent non-dilutive Transforming Technologies grant by Innovate UK. The pre-seed funding will take NZN through its first stage of field trials in 2024.
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