August 5 - August 9, 2024
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In this Week’s Issue: $10.8 billion across 20 deals in transition finance ($7.9 billion), nature-based solutions ($130 million), hard-to-abate industries ($2.5 billion), carbon removal ($97 million), and the blue economy, ($155 million).
10 Essential Deals and Commitments:
Transition Finance
- The U.S. DOE invests $2.2 billion in grid resilience
- AIIM raises $954 million for a new fund
- Iberdrola raises $525 million in green bonds
Nature-based Solutions
- Impact Earth announces a $100 million target biodiversity fund
- Yvy invests $54 million in agricultural robots to improve on-farm chemical use
- International Paper invests $15.3 million in conservation partnerships
Hard-to-Abate Emissions
Carbon Removal
Blue Economy
News Highlights
Policy and Regulation
- Brazil approves a low-carbon hydrogen bill
- China announces sweeping upcoming updates to carbon regulations
Climate & NbS Finance
- Tightened ICVCM standards disqualify hundreds of thousands of credits from renewable projects
- ACP estimates there was $500 billion in U.S. clean energy investment over the past 2 years
Emerging Science
- A Conservation International-led study finds potential for 3 billion tons of annual carbon removal through improved forestry on agricultural lands.
- Iowa scientists build a calculator to help farmers estimate carbon intensity
C4C News and Events
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Nature-based Solutions ≥ $1M
Commitments and deals
Commitments
Impact Earth plans $100 million biodiversity fund [carbon pulse]
- Impact Earth has planned a $50-100 million biodiversity fund focused on either Latin America or Southeast Asia, according to Carbon Pulse. The fund is currently surveying markets that would help the company build on the work of its Amazon Biodiversity Fund.
USDA announces $25 million to thin biomass in national forests [iowa capital dispatch]
- The USDA has announced the availability of a $25 million grant to support the removal of excess woody biomass from national forests. The Hazardous Fuels Transportation Assistance Grant will support local businesses' efforts to reduce wildfire risk and restore forest function. The grant aims to help remove woody materials that have little commercial value and are often difficult to remove.
Deals
Yvy closes $54.48 million investment [capital reset]
- Yvy is expected to make a R$300 million ($54.48 million) investment in Solinftec, a robotic agriculture company. The company utilizes robots to automate agricultural processes and reduce chemical inputs. The investment represents part of Yvy's decarbonization-focused strategy.
International Paper invests $15.3 million in conservation [international paper]
- International Paper has announced $15.3 million in investments to support the company's goal of conserving 1 million acres of ecologically significant forestland. The investments include collaborations with AFF, NFWF, TNC, and WWF.
- Fund Formation
Jharkhand launches a carbon sequestration support fund [times of india]
- Jharkhand state has launched one of India's largest carbon conservation funds, with ₹5 billion ($59.56 million) in capitalization for 20 years. The "Birsa Harit Fund" will provide financing for farmers to plant trees as an alternative to other agricultural products, and will pay per unit of carbon removed.
Transition Finance ≥ $100M
Commitments and deals
Commitments
U.S. provides $1.45 billion guarantee for Qcells' Georgia plant [renewables now]
- The US DOE has agreed to a $1.45 billion conditional loan guarantee commitment to Qcells, to back the South Korean company's Georgia solar manufacturing expansion. The loan will support the construction and operation of the Company's Cartersville GA site, to boost annual manufacturing capacity to 3.3 GW by the end of 2025.
Deals
Stack Infrastructure raises $3 billion to decarbonize data centers [data center dynamics]
- Stack Infrastructure has raised $3 billion to fund green data center development, utilizing an undisclosed form of 'green financing'. The company plans to invest the raised funds in projects that minimize environmental impact, including water conservation, responsible resource utilization, and energy efficiency.
U.S DOE invests $2.2 billion in 18 grid resilience projects [doe]
- The U.S. DOE will invest $2.2 billion in grid resilience projects across 18 states, funded by the Bipartisan Infrastructure law. The projects aim to add 13GW of grid capacity, including 4,800 MW of offshore wind. The project will also invest in community workforce development to provide skilled workers for future grid expansion projects.
Australia invests $323 million in transmission infrastructure [renewables now]
- The Australian federal government has approved an AUD 490 million ($323 million) investment in renewable transmission infrastructure. The 240 km line in New South Wales, will help to connect facilities to the national grid, enabling $13 billion in eventual renewable power investment and the deployment of 4.5 GW of renewable capacity.
IFC-ADB-DEG consortium invests $275 million in Fourth Partner Energy [IFC]
- The IFC, ADB, and DEG will invest $275 million in Fourth Partner Energy, an Indian renewable energy solutions platform, which invests in generation and transmission assets. The Investment will provide capital to fund the company's expansion to an installed base of 3.5 GW of green energy production assets by 2026.
esVolta completes $258 million funding round [renewables now]
- esVolta LP has completed a $258 million senior secured credit facility to finance a 980-MWh energy storage portfolio in Texas. The portfolio will consist of 3 standalone battery energy storage projects across the state.
Largest to date Turkish solar projects secures $275 million investment [solar quarter]
- UK Export Finance and KUKE have guaranteed a €249 million ($275 million) loan for Kalyon Enerji, a Turkish renewable energy investment company. The financing will fund the construction of a 390 MWp power plant development across 7 sites.
Fund Formation
African Infrastructure Investment Managers raises almost $1 billion for a new fund [real assets]
- African Infrastructure Investment Managers (AIIM) has raised $954 million for its latest strategy, exceeding its target by half. The African infrastructure fund African Infrastructure Investment Fund 4, closed at $748 million, alongside $206 million in co-investments, from 29 investors. The strategy will focus on energy transition investments and the continent's shortage of affordable power.
Green Bonds ≥ $100M
Commitments and deals
Completed Issuances
Iberdrola lists $525 million in 10-year green bonds [iberdrola] [hunton andrews kurth]
- Iberdrola has placed a 10-year, $525 million green bond through its subsidiary the New York State Electric & Gas Company (NYSEG). Demand exceeded $2 billion. The financing will support transmission and renewable portfolio expansion across the state of New York.
- The Italian Climate Fund will invest $110 million in green energy development across Africa through a €100 million ($110 million) green bond issued by the West African Development Bank (BOAD). The funds will be used to help rehabilitate existing infrastructure and construct new renewable infrastructure for 8 West African States: Benin, Burkina Faso, Côte d'Ivoire, Niger, Senegal, Togo, Mali, and Guinea-Bissau.
Carbon Removal ≥ $1M
Commitments and deals
Deals
DOE provides $52.5 million to commercialize CDR [doe]
- The U.S. DOE's Office of Fossil Energy and Carbon Management has announced a $52.5 million investment in scaling legacy carbon dioxide removal technologies. The new Commercial Direct Air Capture (DAC) Pilot Prize is available to technology developers who build, commission, and operate DAC facilities that can capture at least 500 metric tons of atmospheric CO2 per year. The prize will accept applications through February 7, 2025.
DOE provides $44.5 million for geologic carbon sequestration [rig zone]
- The DOE FECM has announced 9 selected commercial-scale carbon capture transport and storage projects to receive technical assistance, funding, and strategic assistance on permitting policy development, and community engagement. The projects will receive approximately $5 million each and include universities and other research institutions.
Pertamina sells 460,000 tons of carbon [carbon herald]
- Pertamina NRE, a subsidiary of the Indonesian state-owned oil and gas company Pertamina, has sold 460,000 tons of carbon dioxide equivalent credit. The credits were generated from the company's geothermal plants.
Hard to Abate Sectors ≥ $1M
Commitments and deals
Deals
Woodside Energy buys Texas clean ammonia project for $2.35 billion [reuters]
- Woodside Energy has announced it will acquire OCI Global's clean ammonia project in Texas for $2.35 billion. The project is currently under construction and expected to produce lower carbon ammonia from 2026 on. Phase one of the project will have a 1.1 million metric tons per annum capacity (Mtpa) and will offset 1.6 Mtpa of CO2 equivalent.
U.S. DOE invests $85 million, invokes Defense Production Act to boost heat pump manufacturing [doe]
- The Biden Administration will invest $85 million in 4 heat pump manufacturers to help accelerate the industry. The awards were provided alongside the invocation of the Defense Production Act, to develop domestic heat pump manufacturing.
Fusion start-up Type One Energy raises $82.4 million in seed funding [type one energy]
- Type One Energy, a fusion energy startup, has completed a $82.4 million seed financing round with funding from global investors. The round will support the FusionDirect program, which aims to launch a pilot power plant project by 2030 for the company's stellarator fusion system.
Pipeline Organics raises $1.9 million in wastewater to electricity project [packaging news]
- Pipeline Organics has raised £1.5 million ($1.9 million) from Coca-Cola Europacific Partners and Innovate UK to scale its wastewater to electricity technology. The funding is accompanied by a partnership to ensure Pipeline Organics has access to soft drink manufacturing sites in Europe to provide wastewater for the development of the company's first commercial product by the end of 2025.
Fund
- African Infrastructure Investment Managers (AIIM) has raised $954 million for its latest strategy, exceeding its target by half. The African infrastructure fund African Infrastructure Investment Fund 4 closed at $748 million, alongside $206 million in co-investments, from 29 investors. The strategy will focus on energy transition investments and the continent's shortage of affordable power.
Blue Economy ≥ $1M
Commitments and deals
Deals
World Bank and Ghana collaborate on $155 million in coastal resilience grants [ghana business news]
- The World Bank and Ghana have jointly committed $155 million in grants and loans to support Ghana's coastal area resilience. The funding will support the West African Coastal Areas Resilience Investment Project, which focuses on mitigating the environmental and economic impact of natural disasters and climate change on coastal communities. The first phase of the program has already restored 27,000 hectares of natural habitat in the coastal zone.
Research and Knowledge Sharing
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Policy and Regulations
Brazil approves low-carbon hydrogen bill [bnn bloomberg]
- The Brazilian president has signed legislation establishing a legal framework for low-carbon hydrogen. The framework defines low-carbon hydrogen to encourage international investment and improve competitiveness. However, the president vetoed provisions that would have created tax incentives for production.
Agri-Pulse surveys responses to Growing Climate Solutions Act USDA consultation survey [agri pulse]
- An Agri-Pulse review of submissions to the USDA during its consultation period on the Growing Climate Solutions Act found varying opinions but a consensus on the need for a voluntary, market-driven carbon market in the U.S. The Act, which is meant to support and standardize the voluntary carbon market in the U.S., contains provisions for verifying technical assistance providers, as well as carbon offset protocols. The review found a general feeling among farmers that minimal qualification standards needed to be stringent, but not excessively difficult.
EU publishes CSRD FAQ [esg today]
- The EU has published a new FAQ to guide companies as they implement the EU Corporate Sustainability Reporting Directive (CSRD), which will mandate reporting beginning in 2025. The FAQ provides guidelines on complying with the regulation, avoiding administrative issues, and determining company size.
China updates emissions reduction and carbon capture standard [carbon herald]
- China has announced plans to establish 70 new standards to govern carbon footprints, energy efficiency, and carbon capture technologies. The new standards aim to provide a clear framework for measuring carbon footprints and implementing reduction and removal technologies. The new regulations provided a companion to China's recently released emissions trading system regulation update.
- A new online platform has launched with the goal of building capacity and knowledge sharing for Global South policymakers interested in climate and NbS. The platform provides modules, workshops, and resources for policymakers, community leaders, and others interested in developing and implementing nature policy.
- The Indian Council on Energy, Environment, and Water think tank (CEEW) has announced a new framework focused on driving investment into NbS in the Global South. The Effective Nature-based Solutions Utilisation and Resource Evaluation (ENSURE) framework, is designed to map and estimate the value of NbS in different developmental contexts, and aims to provide a unified framework for stakeholders at all levels when evaluating the financial and environmental appropriateness of a nature-based solution.
Finance Research and Updates
- Forestry and agricultural-based carbon farming suffered major setbacks in the first half of 2024, with an AgFunder survey finding that companies raised less than $10 million in the first half of the year, 10% of the $100 million raised in the first half of 2023. Wider issues in the voluntary carbon market industry and difficulty enrolling farmers to participate in agricultural schemes, were seen as driving factors, as well as a larger falloff in venture investment.
ACP finds $500 billion in clean energy projects were planned in the past 2 years [renewables now]
- The American Clean Power Association reported that the US clean energy industry announced $500 billion in new investments since 2022, with $363 billion going to new projects. The investments are expected to add more than 300 GW of clean power capacity and provide over 100,000 new manufacturing jobs, among other benefits.
- The ICVM has clarified its Core Carbon Principles (CCP), indicating that credits issued from the development of renewable energy projects will no longer be considered valid under the CCP, due to a lack of rigor in current standards. The new standard will disqualify 209 million un-retired or unused credits, making up almost 32% of the current global market.
Emerging Science
- A Landscape Architecture Frontiers study on carbon sinks in western China seeks to examine the spatial pattern of those sinks and how ecological restoration strategies can be developed in line with the area's geography. The paper evaluates current carbon sequestration patterns and how ecological restoration can be tailored to increase carbon sequestration in arid areas, alongside other restoration goals.
Study examines leaf-eating insects' effects on climate and ecosystem health [earth]
- A new study in Nature Communications examines the role that leaf-eating insects play in forest ecosystems and climate health. The study found that leaf-eating insects were essential to maintaining forest nutrient circulation, especially in warmer forests, and that climate changes that harm them can potentially impact forest ecosystem function.
Scientists build carbon intensity calculator for farmers [carbon herald]
- Scientists at Iowa State University have built a calculator to help farmers understand their carbon intensity. The calculator generates a score based on inputs including nitrogen usage, corn acres, corn yield, and the implementation of new farming techniques, and is designed to help farmers comply with tax credits for lower carbon ethanol production that will begin in 2025.
CI study suggests massive potential for carbon sequestration on agricultural land [carbon herald]
- A study by Conservation International published in Carbon Balance and Management finds that agricultural lands have a higher potential for carbon sequestration than previously thought. The study estimates maximum tree cover limits for various agricultural regions that could be achieved without sacrificing yield. The study found the potential to remove 3 billion tons of CO2 annually through the strategic implementation of agroforestry over 2.6 billion hectares.
The New York Times publishes interactive map of global warming tipping points [new york times]
- The New York Times has published an interactive infographic displaying dangerous climate tipping points and how far along the path the planet is to reaching them. The article is based on the latest scientific research on each phenomena, and covers potential tipping points for the thawing of the arctic permafrost, the collapse of the Greenland ice sheet, coral reef mass death, the breakup of the West Antarctic ice, shifts in monsoon patterns, the collapse of the Amazon rainforest, and the shutdown of the Atlantic current system.
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