July 15 - July 19, 2024
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In this Week’s Issue: $15.9 billion across 26 deals in transition finance ($14.2 billion), nature-based solutions ($1.3 billion), carbon removal ($80 million), and the blue economy ($288 million).
10 Essential Deals and Commitments:
Transition Finance
- The UK launches a $10.7 billion capitalized state-owned clean energy investment company
- The EU announces a $7.6 billion investment in green transport infrastructure
- City Developments Limited receives $297 million TNFD compliant credit line
- Intersect Power secures $837 million in financing for 3 battery energy storage projects
Nature-based Solutions
- GCF approves $1 billion in financing for 17 projects worldwide
- Earthshot Labs raises $5.5 million for a NbS project development platform
Hard-to-Abate Emissions
Carbon Removal
Blue Economy
News Highlights
Policy and Regulation
- Pennsylvania & Illinois pass carbon capture regulations
- China releases a plan to cut coal power emissions
- Meyer Brown releases analysis of upcoming UK Forest Risk Commodity Regulation
Climate & NbS Finance
- Stress test of 5 African banking systems predicts credit loss increase of up to 21% by 2050 due to nature risk
- HSBC launches a new low carbon infrastructure transition unit
- 132 companies organized by Business for Nature release a letter calling for increased governmental and corporate action on nature
Emerging Science
- Australia releases new natural capital accounting frameworks for mining projects
- Nature metastudy finds thresholds of degradation for logged forests
- Nature Ecology & Evolution study estimates deforestation in indigenous protected areas in Brazil is 83% lower than unprotected areas
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Nature-based Solutions ≥ $1M
Commitments and deals
Deals
GCF approves $1 billion in financing across 17 projects [green climate fund]
- The 39th Board Meeting of the GCF has announced $1 billion in new investments across 17 projects in 35 countries. The move expands the GCF's portfolio to 270 projects and an expected overall investment total of $58.7 billion, with $14.9 billion in committed GCF funding. The 17 projects focus extensively on climate resilience, including climate adaptation projects for local governments in Bhutan, mangrove restoration projects in Ecuador, and a project focused on building climate resilience for food and livelihoods in the Horn of Africa with the AFDB. 6 new organizations were accredited to participate in GCF projects as part of the decision.
USDA releases $90 million in Conservation Innovation Grants [USDA]
- The USDA is investing $90 million in 53 Conservation Innovation Grant (CIG) projects, with funding authorized by the Inflation Reduction Act. The projects are focused particularly on the reduction of enteric methane emissions, and include $69.7 million for On-Farm Trial projects and $20.2 million for CIG Classic projects.
Canada invests $65 million in 10 NCS projects [canada]
- Canada's Ministry of Environment and Climate Change will provide CAD 89.1 million ($65 million) for 10 greenhouse gas emissions reduction projects across the country, with funding coming from the Nature Smart Climate Solutions Fund. Recipients include indigenous groups such as the Metis Nation of Alberta, the Nuxalk Nation, the Fisher River Cree Nation, and nature trusts, parks foundations, and conservation associations across the country. The projects focus on nature-based carbon sequestration methods that also provide environmental co-benefits and protect species at risk.
- Canada and the province of New Brunswick will invest CAD 71.6 million ($52 million) to plant 52 million climate-resilient trees across the province by 2031, as part of Canada's 2 billion trees program. The funding is expected to help double the province's capacity to produce seedlings for planting programs, and will also provide grants to local communities and environmental groups.
Onego Bio nets $15.2 million to advance alternative protein production [ag funder news]
- Onego Bio, an alternative protein company producing egg protein using microbes instead of chickens, has secured €14 million ($15.2 million) from the European Innovation Council Accelerator program, as well as other series A investors, to scale its precision fermentation operation. The company is expected to receive Generally Recognized as Safe status from the FDA this year, and is preparing a Novel Foods submission to the EFSA to secure market entry in Europe.
Earthshot Labs raises $5.5 million [esg today]
- Earthshot Labs, a nature-based carbon project development and financing startup has raised $5.5 million in a Series A funding round. The funding will help expand the company’splatform for developing and financing nature restoration and conservation projects that use carbon as a primary financing mechanism.
Mitti Labs raises $3m for rice farming methane reduction technology [ag funder news]
- Mitti Labs, a startup focused on reducing methane emissions from rice farming, has raised $3 million in a seed round to develop the companies product line of technologies for monitoring and calculating carbon emissions and potential reductions for rice farming.
Bio-Logical raises $1.3 million [techpoint africa]
- Bio-Logical, a Kenyan biochar startup, has raised $1.3 million to expand its Mount Kenya biochar facility. The round was led by CrossBoundary, Redshaw Advisors, and other existing investors. The company uses biochar production technology to sequester carbon and turn it into fertilizer, with the goal of supporting 1 million metric tons of carbon dioxide removal annually by 2030.
Cargill invests $1 million in cattle methane emission reduction research [beef magazine]
- Cargill has given Colorado State University a $1 million grant to help fund the university's AgNext research program. The grant will fund research into how to decrease enteric methane emissions from feedlot cattle, and develop new baselines for estimating methane emissions from different feed types.
Fund Formation
Trill Impact ventures raises more than $97 million for a new fund [agri investor]
- Trill impact ventures has closed its debut fund at above €90 million ($97 million) after 2 years on the market. The fund’s raise took longer than expected due to a slowdown in venture capital fundraising. The fund is classified as Article 9 under EU rules, and is focused on investing in businesses addressing underserved patient groups and backing innovative green tech solutions.
Transition Finance ≥ $100M
Commitments and deals
Commitments
- The UK will create £8.3 billion ($10.7 billion) capitalized energy infrastructure developer to build and operate renewable power infrastructure throughout the country. The exact parameters of GB Energy's investment portfolio remains unclear, and strategic priorities are expected to be established following enabling legislation. The government also authorized borrowing to establish offshore wind infrastructure on seabed leases.
Brazil aims to leverage $20 billion in climate investments with $2 billion climate fund [esg news]
- The Brazilian Treasury and Securities and Exchange Commission have launched EcoInvest, a fund consortium aimed at supporting early-stage sustainable ventures. The vehicle focuses on catalyzing funding to projects with long funding cycles in immature sectors, specifically excluding wind, solar energy and transmission line projects that already have secure financing models. Brazil expects to contribute $2 billion to support the EcoInvest program.
Seriti Green launches $1.37 billion wind farm project in South Africa [esg news]
- Seriti Green has begun the construction of a R25 billion ($1.37 billion) wind farm project in South Africa, which will be constructed in 3 phases. The first phase is expected to have a capacity of 900 MW in wind energy production, upon completion in 2026.
Deals
EU announces €7 billion for sustainable transport infrastructure [esg news]
- The EU has announced a €7 billion investment in transport infrastructure, with 83% earmarked for climate-focused projects. The funds will be allocated across 134 projects, including rail links, renewable energy infrastructure for public transport, port upgrades, and other climate-related transport initiatives.
Intersect Powersecures $837 million in financing commitments [power technology]
- Intersect Power has secured $837 million in financing for 3 battery energy storage systems in Texas. Tax equity was provided for the project by Morgan Stanley, with HPS Investment Partners also making a substantial construction debt and term debt investment. Each site will provide 320 MW hours of battery storage with a two-hour duration.
- City Developments Limited has secured a S$400 million ($297 million) revolving credit facility in line with TNFD recommendations from City Developments Limited. The loan is the first-of-its-kind and contains specific biodiversity, conservation, waste management and water efficiency performance targets as clauses within the agreement.
Cloverleaf Infrastructure raises $300 million to develop low carbon data centers [esg today]
- Cloverleaf Infrastructure has raised $300 million to develop low and no carbon data center sites throughout the United States. The company, which was founded in 2024, invests in transmission, grid interconnection, onsite power generation and electricity storage to help decarbonize data centers nationwide.
Symphony raises $329 million in series A financing round [esg today]
- Symphony Infrastructure Partners has raised AUD 488 million ($329 million) for its Series A financing round, including AUD 300 million ($202 million) from Blackstone. Proceeds from the transaction are expected to help complete 5 pending acquisitions in Australian transition infrastructure.
LevelTen raises $65 million to expand into new markets [esg today]
- LevelTen, a marketplace and software provider for clean energy buyers and sellers, has secured $65 million in a series D financing round aimed at expanding the company's footprint into new markets. The financing was led by B Capital, a global multi-stage investment firm.
Fund Formation
Eurazeo raises $766 million for inaugural transition strategy [new private markets]
- The Eurazeo Transition Infrastructure Fund (ETIF) has held a final close of €663 million ($722 million) with €43 million ($46 million) in co-investments. The strategy emphasizes core infrastructure focused on the transition to low carbon. 60% of the fund is already committed, with expected opportunities in the lower mid-market space of €50-100 million.
Green Bonds ≥ $100M
Commitments and deals
Completed Issuances
Hong Kong raises $3.2 billion via green bonds [scmp]
- Hong Kong's government has raised $3.2 billion via green bonds denominated in multiple currencies, as part of the city's push to establish itself as a sustainable finance hub. The deal was made up of a $1 billion three-year dollar bond, a seven-year €750 million (US$819.75 million) bond, and a 10 billion yuan (US$1.38 billion) bond with maturities of two, five, 10, 20 and 30 years. Proceeds will be used to finance or refinance projects that support sustainable development or provide environmental benefits.
Masdar raises $1 billion from second green bond [environmental finance]
- Masdar has raised $1 billion from its second green bond, a year after the company's green bond debut. The dual-tranche bond was oversubscribed with an orderbook for $4.6 billion, and was issued in 2 $500 million tranches, with 5 and 10 year tenors, with 4.875% and 5.25% coupons. The proceeds will be earmarked to help Masdar continue to develop renewable energy projects.
Carbon Removal ≥ $1M
Commitments and deals
Deals
Again raises $43 million to scale industrial emissions-to-chemicals technology [esg today]
- Again has raised $43 million in a series A funding round, with proceeds dedicated to the scaling of the company's technology, which utilizes CO2 captured from flue gasses, hydrogen and biological feedstock to produce green base chemicals. The company's plant in Denmark already converts up to a ton of CO2 per day into industrial chemicals.
44.01 raises $37 million to turn CO2 into rocks [esg today]
- 44.01, an Oman-based carbon sequestration company, has raised $37 million in a series A funding round focused on developing and commercializing the company's technology, that turns captured CO2 into rock by accelerating CO2 mineralization and sequestering the product below ground.
Hard to Abate Sectors ≥ $1M
Commitments and deals
Deals
Aramco acquires 50% stake in Air Products Qudra's blue hydrogen business [gasworld]
- Aramco has signed agreements to purchase a 50% stake in Air Products Quadra's blue hydrogen industrial gasses division. The total value of the investment was undisclosed. The investment comes as part of Aramco's pivot to deeper involvement in the hydrogen market.
Blue Economy ≥ $1M
Commitments and deals
Deals
NOAA plans to award $220 million for coastal habitat restoration [noaa]
- NOAA has recommended $220 million in funding for 32 habitat restoration and coastal resilience projects across the United States. The projects include partnerships with Tribal Communities and local governments, and the restoration of coastal habitats vulnerable to sea level rise, alongside salmon habitat restoration and other important species habitat restoration.
Costa Rica issues first blue bond with $50 million [tico times]
- IDB Invest had led the purchase of Banco Nacional de Costa Rica's (BNCR) first blue bond, committing $25 million to the $50 million bond issuance, alongside $20 million from FinDev Canada and $5 million from LAgreen. The proceeds will be used to increase financing for Costa Rican companies focused on blue economy projects, including sustainable water management, plastic waste management, marine-coastal projects and the circular economy.
NovoNutrients raises $18 million for CO2 to aquafeed protein technology development [seafoodsource]
- NovoNutrients, a California-based CO2 to aquaculture feed startup, has closed a $18 million series A funding round. The round is expected to help the company expand using an asset-light strategy focused on licensing and strategic partnerships. The company's technology captures carbon from industrial emissions and combines it with hydrogen to create protein components.
Research and Knowledge Sharing
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Policy and Regulations
Seychelles approves a new forest management policy [seychelles news agency]
- The Cabinet of Ministers of Seychelles have announced a new Seychelles Sustainable Forest Management Policy, which will update the country's guidelines for managing its forest resources. The policy provides guidelines for managing invasive species, increasing overall sustainability and enhancing eco-tourism.
China plans low-carbon upgrades for coal plants [reuters]
- China has announced new approaches to managing emissions in the coal power industry under a new plan from the National Development and Reform Commission and the National Energy Administration. The regulation encourages the support and subsidization of low-carbon projects and aims to cut carbon emissions by 50% from 2023 levels.
Pennsylvania passes carbon capture bill [catf]
- Pennsylvania has signed a new carbon capture and storage bill that will set out regulations for the development of the industry in the state. The bill provides a framework for state agencies’ regulation of CCUS, minimum requirements for the unitization and certification of projects, as well as seismic safety and monitoring standards.
Canada launches green building strategy [renew canada]
- Canada has released a new Green Buildings Strategy focused on decarbonizing Canadian housing and improving energy efficiency. The strategy includes a CAD 800 million ($580 million) Canada Greener Homes Affordability Program, which will replace the previous grant system. The plan also includes anOil to Heat Pump Affordability Program, and commitments to green federal infrastructure.
Mayer Brown publishes analysis of UK Forest Risk Commodity Regulation [mayerbrown]
- Mayer Brown has published an outline and analysis of the UK's Forest Risk Commodity regime, which has been detailed following passage of enabling legislation in 2021, and a recent consultation process. The analysis summarizes the scoped and exempted businesses covered by the regulation, as well as covered commodities, requirements for compliance and the differences between the UK FRC and the similar EUDR.
Illinois launches new carbon capture and storage regulation [sjr]
- Illinois has passed and signed into law the Safe CCS Act, which establishes a two year moratorium on the construction of CO2 pipelines and regulations on the development of future carbon capture infrastructure. The regulations will require pipeline developers to demonstrate effective carbon pollution reduction and pipeline safety, and will collect an annual fee based on stored carbon dioxide.
Finance Research and Updates
EDF released new pricing guidelines for REDD+ for tropical forest nations [edf]
- The EDF has published a new report with data from MSCI Carbon Markets entitled Navigating Jurisdictional REDD+: A Pricing Guide for Tropical Forest Nations, which provides updates on the current market framework and latest pricing guidelines for Jurisdictional REDD+ credits. The analysis examines the current state of the Voluntary Carbon Market and its effect on JREDD+ prices, potential 2024 developments that could affect the supply and demand sides of the market and the prices differential between JREDD+ credits and non-premium credits.
Bloomberg expects US to continue to lead carbon capture industry [bnef]
- A new Bloomberg NEF analysis expects the US to continue to lead the global carbon capture industry in capacity, with a sevenfold jump by 2035, driven by government incentives. The analysis expects that the US will have the capacity to capture as much as 164 million tons of carbon by 2035 — almost equivalent to the next three markets combined.
HSBC launches carbon transition-focused unit [esg today]
- HSBC will launch the HSBC Infrastructure Finance unit, which will pursue infrastructure financing and project finance advisory opportunities associated with the transition to a low carbon economy. The new unit builds on the release of HSBC's Net Zero Transition Plan earlier in 2024, and will incorporate the tasks of some existing units, including infrastructure finance, export finance, and portfolio management, in addition to reactivating the firm’s Project Finance Advisory capability. Former UK MP Danny Alexander will serve as CEO for the new unit.
- A stress test of the banking systems of Ghana, Mauritius, Morocco, Rwanda and Zambia, conducted by McKinsey, FSD Africa and the African Natural Capital Alliance, found that some of the analyzed systems could face cumulative credit losses of up to 21% by 2050, with higher impacts in individual sectors. The analysis found that nature-related risks could reach 50% in agriculture and 32% in mining respectively, due to nature degradation-related risks. Compliance with the Kunming-Montreal Global Biodiversity Framework could drop profit losses by up to 78%, according to the study.
Companies representing more than $1 trillion in assets urge government action on nature [reuters]
- A consortium of 132 companies representing more than $1 trillion in assets have released a letter calling on governments across the world to take increased action on nature ahead of the biodiversity COP16 talks. The letter, which was coordinated by Business For Nature, was signed by major international companies, including Unilever, L'Occitane, and Iberdrola.
Emerging Science
Study examines effect of participation in green cooperatives on green performance [nature]
- A new study in Nature of 491 farmers experiences joining cooperatives in Jiangxi Province, China, examines the effects that participation in green cooperatives has on farmers' abilities to reach green production and performance targets. The study found that participation in a green farming cooperative helped improve ecological performance, and that environmental regulations also improved farmer’s ecological performance.
New reports test natural capital accounting framework for Australian mining projects [csiro]
- CSIRO, Australia's national science agency, has published a new suite of tools focused on supporting the adoption of natural capital accounting (NCA) in the mining industry. The reports provide resources, including a business case, gap analysis and roadmap, guidance on NCA concepts, methods and reporting structures, and a pilot forecasting study to demonstrate a potential strategic use of NCA.
Study confirms NbS for disaster risk mitigation are cost effective [phys]
- A new assessment of scientific literature in Science of The Total Environment concludes that nature-based solutions are an economically effective method for mitigating the risk of disasters. The study examined more than 20,000 English-language peer-reviewed studies, and found that NbS were consistently found to be a cost-effective approach to mitigating hazards in 71% of them. The analysis also concluded the ecosystem-based interventions most frequently found effective in mitigating hazards were those associated with mangroves (80%), forests (77%) and coastal ecosystems (73%).
New study provides metrics for studying wildlife health of African forests [cirad]
- A study in NpJ Biodiversity entitled Hunting indicators for community-led wildlife management in tropical Africa examines how community-led wildlife management in tropical Africa can be tracked in order to ensure compliance with the Kunming-Montreal Global Biodiversity Framework targets. The study examined the effectiveness of 33 different offtake indicators in monitoring the status and extent of degradation of hunted wildlife, and concluded that the Rodents-to-Ungulates Ratio and Mean Body Mass of Offtake metrics were particularly effective metrics for monitoring ecosystem health.
Study examines ecological value of logged forests [eureka alert]
- A meta-study in Nature uncovers thresholds for when logged rainforests lose the ability to sustain or regenerate. The study used data from 127 forest surveys in Malaysia over more than 10 years to discover the impact of logging on various sites across the landscape gradient. The study suggested that forests that had less than 29% of biomass removal retained relatively high biodiversity and ecological value, and that above 68% biomass removal, ecological communities began to become heavily affected by extinctions and invasive species.
- A study in Nature Ecology & Evolution combines satellite imagery across the Amazon with Brazilian census data to estimate the impact of Indigenous community stewardship within the rainforest biome. The study concluded that deforestation in Indigenous protected areas was 83% lower than in unprotected areas overall. The study also found that small agricultural landholdings also had lower rates of deforestation compared to larger agricultural landholdings.
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