July 29 - August 2, 2024

Your Newsletter at a Glance

Commentary by C4C

Register to use our platform for more information on investment opportunities and the climate investment landscape.

Subscribe to Nature for Climate's weekly newsletter for more science and policy updates & read more about green central banking & other climate trends from our friends at Climate & Capital Media.

In this Week’s Issue: $26.7 billion across 25 deals in transition finance ($25.4 billion) nature-based solutions ($300 million), hard-to-abate industries ($6 million), and the blue economy ($941 million).

10 Essential Deals and Commitments:

Transition Finance

• Spain invests $18.4 billion in green energy projects
• The UK launches a $1.9 billion green energy auction
• Breakthrough Energy Ventures raises $839 million for a new fund
• Helios raises $200 million for an Africa-focused climate fund

Nature-based Solutions

• The IFC commits $50 million to BTG Pactual TIG’s Latin America Strategy
• Graphyte raises $30 million for biomass-based carbon removal
• Applied Carbon raises $21.5 million for agricultural CDR tech

Hard-to-Abate Emissions

• Sora Fuel raises $6 million for a seed round

Blue Economy

• The US announces $240 million to restore salmon fisheries and habitat
• The EU invests $139 million in aquatic ecosystem restoration

News Highlights

Policy and Regulation

• The US and Brazil announce a climate partnership at the G20
• India launches a sustainable forestry certification scheme
• Scotland publishes new guidelines on encouraging private investment in peatland restoration

Climate & NbS Finance

• CREO Syndicate releases a report on climate investment landscape for family offices
• Agri Investor finds agri-food and forestry fundraising hit $5.1 billion in the first half of 2024
• Amazon 2030, BVRio and Igarape Institute release a Tropical Forest Mechanism proposal

Emerging Science

• A new paper in Nature examines the potential effectiveness of JETP targets
• A new report examines solar farms' biodiversity impact in the UK
• A study in Nature finds 460 million ha of wildlands are under conversion pressure

Click here to subscribe! Or, keep scrolling for deal flow.

Nature-based Solutions ≥ $1M

Commitments and deals

Commitments

Carbon2Nature signs a partnership with Iberdrola's Brazilian subsidiary [atalayar]

• Carbon2Nature will partner with Iberdrola's Brazilian subsidiary, NeoEnergia, to create a joint venture to develop carbon projects in Brazil. Carbon2Nature will hold a 51% stake in the venture, with NeoEnergia holding 49%. The joint venture hopes to capture more than 10 million metric tons of CO2 on projects over more than 19,000 hectares.

Deals

IFC commits $50 million to BTG Pactual TIG's Latin America reforestation strategy [IFC]

• The International Finance Corporation (IFC) has finalized a $50 million commitment to help BTG Pactual Timberland Investment Group mobilize $1 billion for its Latin American reforestation strategy. The transaction is IFC’s first with BTG TIG and provides additional benefits for specific performance of social impact targets.The strategy aims to protect 135,000 hectares of natural forests eventually.

Graphyte raises $30 million [esg today]

• Graphyte has raised $30 million in a Series A funding round, with proceeds dedicated to accelerating the company's compressed biomass-based carbon dioxide removal (CDR) technology and scaling up its carbon removal operations. Graphyte expects to reach a capacity of 50,000 metric tons of CO2 removed a year by 2025 and aims to use the new capital to launch four carbon removal facilities and expand capacity to 5 million tons of CO2 removed a year by 2030.

Applied Carbon raises $21.5 million in series A [ag funder news]

• Applied Carbon has raised $21.5 million in series A fundraising to scale its agriculturally based CDR technology. The company's biochar machines use agricultural biomass to create porous biochar through pyrolysis. Investors included Congruent Ventures, the Grantham Foundation, and the Microsoft Climate Innovation Fund.

DOI invests $20 million in Native Hawaiian-led ecosystem restoration [doi]

• The US Department of the Interior has announced a $20 million investment in climate resilience in Hawaii, awarded to 17 Native Hawaiian-led organizations. The funding will support the restoration of native ecosystems to boost climate resilience and food security.

USDA provides $10 million for wood-to-fuel and fish feed project [u maine]

• The USDA has awarded $10 million to University of Maine Forest Bioproducts Research Institute (FBRI) and Aquaculture Research Institute (ARI) for a project focused on turning low-quality woody biomass from underbrush and small trees into useful products.The project explores processes for transforming woody biomass into sustainable jet fuel and sustainable protein for aquaculture-farmed fish through lignin processing.

Impact Earth invests $3.6 million in Brazilian agroforestry [environmental finance]

• Impact Earth has invested 20 million Brazilian Reais ($3.6 million) in Belterra Agroforestry, with funds from Impact Earth's Amazon Biodiversity Fund.The capital will be directly invested in local farmers’ agroforestry development.

Microsoft purchases 80,000 tons of forestry carbon removal credits [esg today]

• Microsoft has announced another large purchase of biological carbon removal credits, with an 80,000-ton deal with Northern California's Western Rivers Conservancy's Blue Creek Improved Forest Management Project, facilitated by 3Degrees. The project will be based on 15,000 acres of the Blue Creek site, and the revenue generated will help the project purchase the local Yorok Tribe's ancestral lands and donate them to the Tribe.

Fund Formation

LandFund Partners open-end fund reaches $165 million [agri investor]

• LandFund Partners has taken $165 million for its new Soil Enrichment Fund open-end farmland fund. The fund's strategy focuses on reducing and sequestering carbon emissions through implementing regenerative practices.

Transition Finance ≥ $100M

Commitments and deals

Commitments

The UK Government reiterates pledge of $14.74 billion in overseas climate aid [the guardian]

• Labour energy secretary Ed Miliband re-affirmed the country's pledge of £11.6 billion ($14.74 billion) in overseas climate crisis-related aid at a meeting of COP presidents on July 26th, 2024. The Labour minister suggested that the 55% remaining to be spent from the pledge, which was made under Boris Johnson, would be disbursed, but that some difficulties related to the UK's fiscal situation might present problems for implementation.

UK launches $1.91 billion clean energy auction [the guardian]

• The UK Labour government has announced it will auction £1.5 billion ($1.91 billion) in clean energy contracts over the 2024 summer auction period, an increase of 50% from the previous benchmark. The move is expected to catalyze UK clean energy investment after an embarrassment in 2023 when the government could not award a single offshore wind contract.

Societe Generale announces $1.09 billion transition investment commitment [societe generale]

• Societe Generale has announced a majority stake investment in Reed Management SAS, an alternative asset management company, with a €250 million ($273 million) inaugural fund commitment. This commitment will potentially be increased to  €350 million ($382 million), as part of a €700 million ($763 million) equity envelope, contributing to Societe Generale's goal of investing €1 billion ($1.09 billion) in the energy transition. Considered investments through Reed Management SAS include hybrid infrastructure projects in energy, water, and waste.

Galvanize Climate Solutions launches $500 million fundraising target real estate decarbonization fund [new private markets]

• Tom Steyer's Galvanize Climate Solutions has announced a dual-mandate real estate decarbonization fund with a $500 million fundraising target. The fund is mandated to reduce operational carbon emissions in assets by 100% within 3 years and generate returns of 11-15 % net IRR. 30% of carried interest will be tied to achieving sustainability targets.

Gaia launches $200 million target Gaia Africa Climate Fund [financial post]

• Gaia Fund Managers has set a target of $200 million for the new Gaia Africa Climate Fund, which will be administered by Apex Group. Investors have already agreed to provide $50 million in checks in 2024, with the fund expected to be fully capitalized by the end of 2025. The fund will operate as a yieldco, investing in plants that are currently operating to free up money for the development of new solar, wind, and hydropower facilities.

Deals

Spain invests $18.4 billion in 300 clean energy projects [esg news]

• Spain has approved almost 300 renewable power projects that, if completed, would boost the country's green energy capacity to over 28 gigawatts. The projects represent a combined investment of  €17 billion ($18.4 billion), and are a vital part of the government's goal of expanding renewable electricity generation to 81% of the total mix by 2030.

Quinbrook Infrastructure Partners raises $3 billion for green energy infrastructure investment [renewables now]

• Quinbrook Infrastructure Partners has raised $3 billion in commitments, its largest fund closing to date, for the company's Net Zero Power Fund. The fund invests across large-scale solar and storage infrastructure, sustainable data center infrastructure, renewable fuels, synchronous condensers, and contracted battery storage in strategic locations, with investments in the US, UK, and Australia.

TPIA secures a $800 million loan for sustainable projects [indonesia business post]

• PT Chandra Asri Pacific (TPIA) has secured a $800 million syndicated loan fund for environmentally and socially sustainable projects. The loan was secured with the support of financial institutions including Oversea-Chinese Banking Corporation Limited (OCBC), PT Bank Central Asia (BCA), and PT Bank Danamon Indonesia (BDMN).

Helios raises $200 million for Africa-focused climate fund [reuters]

• Helios Investment Partners has raised $200 million for the Helios Climate, Energy Access, and Resilience (CLEAR) Fund, which has a final target of $400 million. The fund will target companies in low-carbon energy; climate-smart agriculture and food; climate-friendly mobility and logistics; recycling and resource efficiency; and digital and financial climate "enablers", across Africa.

USDA invests $163 million in clean energy [usda]

• The US Department of Agriculture (USDA) has announced it will invest $163 million through loans, grants, and technical assistance to support 338 clean energy projects in 39 U.S. states and the territory of Guam. The projects are focused on expanding access to clean energy for rural communities and will support the expansion of wind, solar, geothermal, and small hydropower energy stations, as well as support energy efficiency improvements.

osapiens raises $120 million for ESG compliance platform [osapiens]

• osapiens, an ESG platform provider of compliance and sustainability reporting technology, has raised $120 million in a financing round led by Growth Equity at Goldman Sachs Alternatives. The round included a minority stake acquisition by Goldman Sachs Alternatives. The funds from the round will go to accelerate the internal expansion of the technology platform.

Fund Formation

Breakthrough Energy Ventures raising $839 million fund [geekwire]

• An SEC filing by the Bill Gates-backed Breakthrough Energy Ventures has revealed $839 million raised for a new fund. A fund spokesperson confirmed that the fund would focus on Electricity, Transportation, Manufacturing, Buildings, and Food and Agriculture.

Tikehau raises $873 million for decarbonization strategy [new private markets]

• Tikehau capital has raised  €800 million ($873 million) at first close for the Tikehau DecarbonizationFund II. The fund first came to market in February 2023 with a target between €2 billion and €3 billion.

Ninety One launches $400 million EM transition fund [IPE]

• Ninety One has raised $400 million from Wiltshire Pension Fund, LGIM, CDPQ, OMERS, and others via its Emerging Market Transition Debt (EMTD) strategy. The open-end vehicle will continue to allow investors to enter and will construct a debt portfolio focused on clean infrastructure, clean technology, and decarbonization.

I Squared invests $200 million in UK electric infrastructure [i squared]

• I Squared will invest $200 million in "last-mile" electric grid infrastructure in the UK, through the purchase of a controlling interest in Aurora Utilities Limited. The plan is to use the funds to become a large owner of grid infrastructure, while connecting customers to the electricity network, building EV charging stations, battery storage sites, and electrifying businesses and housing developments.

responsAbility raises $100 million for Asian carbon emissions reduction fund [impact investor]

• responsAbility, a Swiss impact investment manager and subsidiary of M&G, has raised $100 million in funding for carbon emission reduction in Asia. The funding will be targeted to transition-related infrastructure such as renewable energy, electric mobility, and energy efficiency, with a particular focus on the regulatory environment of the countries invested in.

Green Bonds ≥ $100M

Commitments and deals

Completed Issuances

QuadReal closes $400 million green bond issuance [cision]

• QuadReal Property Group has completed a $400 million green bond issuance of 4.16% Series 6 Senior notes, with a maturity of July 31, 2027. The notes are earmarked according to the company's green bond framework.

Hard to Abate Sectors ≥ $1M

Commitments and deals

Deals

Sora Fuel raises $6 million for atmospherically-sourced sustainable aviation fuel [sora fuel]

• Sora Fuel, a sustainable aviation fuel startup, has raised $6 million for an oversubscribed seed round, led by The Engine Ventures, with participation from Wireframe Ventures and others. The funding will be used to expand the company's team and develop commercialization partnerships to advance Sora Fuel's technology, which captures atmospheric CO2 and electrolyzes it to produce aviation fuel.

Blue Economy ≥ $1M

Commitments and deals

Deals

NOAA invests $575 million in coastal climate resilience [eenews] [noaa]

• NOAA will provide $575 million in Inflation Reduction Act grants across 19 projects in 15 states to support shoreline communities' climate adaptation and resilience.The grants will assist state efforts to protect and relocate vulnerable coastal communities equitably.

U.S promises $240 million to support PNW fish hatcheries [cbs42]

• The US Departments of Commerce and the Interior have announced a combined $240 million investment in salmon and steelhead hatcheries in the Pacific Northwest, invested in cooperation with local Native American Tribes. The initial phase of the project will be a $54 million investment in hatchery maintenance and modernization, split between 27 regional Tribes.

EU invests $141 million investment in Ocean and water body restoration [innovation news network]

• The European Commission announced a €126.9 million ($141 million) investment across 26 projects through the EU Mission "Restore Our Oceans and Waters" Program. The initiative is under the Horizon Europe program and ranges from sustainable sediment management in rivers to improved fisheries management and coastal ecosystem restoration across the bloc's lake and ocean landscapes.

Urchinomics receives capital infusion [silicon canals]

• Urchinomics, an aquaculture venture focused on restoring kelp forests through urchin harvesting, has raised an undisclosed amount through 2 deals with Japan's FOOD & LIFE COMPANIES Ltd and NYK. The partnerships are expected to help the company expand its urchin removal and ranching projects.

Research and Knowledge Sharing

Grow your climate finance expertise For more key insights on policy and science, check out Nature 4 Climate & Subscribe to their newsletter for more weekly updates.

Policy and Regulations

US and Brazil announce climate partnership [reuters]

• The U.S. and Brazilian governments have announced a climate partnership at the G20 finance meeting in Rio De Janeiro. The two nations have pledged to work together to bolster clean energy supply chains, scale finance, and improve the integrity and effectiveness of voluntary carbon markets.

Potential Trump victory spooks European green energy companies [fast company]

• European clean energy companies are beginning to rethink expansion plans, Fast Company reports, due to fears of a potential second Trump Administration. Executives surveyed by Fast Company are especially concerned that subsidies passed by the Biden Administration might be rolled back, with some canceling U.S expansion plans as a pre-emptive measure.

Scottish Government publishes support on promoting private investment in peatland carbon [scottish government]

• The Scottish Government has published a new report recommending methods for engaging investors in protecting and restoring peatland carbon in the country. The review provides background on the current state of peatland protection finance in Scotland, and methods the state can use to promote peatland protection, including encouraging blended finance.

E3G estimate 2 gigatonnes of annual CO2e initiatives are protected by investment treaties [e3g]

• A review by E3G maps how investor-state dispute settlement provisions (ISDS) protect fossil fuel assets globally. The review found that 2,463 treaties limited the action states can take to scale back fossil fuel production, representing 2 gigatonnes of CO2e annually.

India releases sustainability certification scheme [dd news]

• The Indian Ministry of Environment, Forest, and Climate Change has launched the Indian Forest and Wood Certification Scheme, which will certify sustainable forest management and agroforestry initiatives throughout the country. The scheme will operate as a voluntary third-party certification system, with forest management certification, tree outside forest (TOF) management certification, and chain of custody certification segments.

Finance Research and Updates

Amazon 2030, BVRio, and Igarapé Institute release Tropical Forests Mechanism concept note [amazonia 2030]

• BVRio and Igarapé Institute have released a joint concept note on how to create a Tropical Forests Mechanism to support nature finance at scale. The mechanism, which is expected to complement Brazil's Tropical Forests Forever Fund (TFFF), would focus on measuring impact through hectares of forests, as opposed to carbon captured, and would provide annual payments for forest conservation, as well as penalties for deforestation.

Crop insurance limiting climate action for some farmers [bnn bloomberg]

• BNN Bloomberg has published an investigation into how crop insurance providers are limiting options for farmers who want to switch to regenerative and climate-friendly practices. The restriction of crop insurance policies to commodity crops was seen as an especially large barrier, but one that could be alleviated with both governmental and private incentives.

FactSet tracks recent downturn in institutional investments in oil majors [factset]

• FactSet's tracking of institutional investors' exposure to the oil sector has found a recent downturn in fossil fuel investments from major pension funds such as CalPERS. The trackerfound a decline in distribution as a percentage of NAV from 23.5% in 2014 to 11.6% in 2019.

GRI and TNFD launch interoperability standards [esg today]

• The GRI and TNFD have published joint interoperability mapping resources, to allow companies to comply with both frameworks and use them interchangeably. Major sectors of alignment highlighted included consistent nature-related concepts and definitions, the incorporation of GRI's materiality approach focusing on impacts in the TNFD Recommendations and guidance, and strong consistency between the TNFD core global disclosure metrics and the related metrics in the GRI Standards.

CREO releases private climate investment report [forbes]

• CREO Syndicate, a coordinator of responsible investment for family offices, has released a new summary report on private investments in climate solutions. The report analyzes which climate solutions are ready for investment, and which require additional capital investment to be ready to scale, among other insights.

H1 2024 agri-food and forestry fundraising hit $5.1 billion [agri investor]

• Agri-food and forestry fundraising in H1 of2024 hit $5.1 billion, up from $2.9 billion at the same time in 2023, according to Agri Investor. This represented the largest half-year fundraising figure since 2021. Standing out was BTG LatAm's Timberland Fund II, reaching a $1.24 billion close in April, the largest in almost a decade.

IASB calls for rigor in accounting for climate impacts [reuters]

• The IASB has launched a consultation on proposed guidance for companies to apply the board's rules to climate impact reporting. The guidance provides examples of best practices for sustainability disclosure, and how to incorporate it effectively into company processes.

PCAF receives 500 signatories [environmental finance]

• The Partnership for Carbon Accounting Financials (PCAF) has signed its 500th signatory, whose name was not disclosed, in advance of its fifth anniversary. The PCAF standardizes GHG emissions accounting and reporting standards for financial institutions and will commence a public consultation in 2025 to update its new methodology drafts.

Emerging Science

NatureMetrics releases soil restoration tracker tool [carbon pulse]

• NatureMetrics has launched a tool for measuring and tracking soil restoration progress, which it hopes will help private organizations better demonstrate their nature-positive impact. The “Restoration Tracker” tool aligns with the TNFD, SBTN, and EU CSRD, and uses eDNA sampling of restored areas to track restoration progress.

Nature paper suggests JETPs are more aligned than 1.5c trajectory than previously thought [nature]

• A new study in Nature Climate Change examines the potential effectiveness of Just Energy Transition Partnerships (JETPs) in reducing coal consumption and aligning countries with Paris Agreement climate targets. The study found that JETP targets were generally aligned with 2030 climate goals, and their achievement would improve alignment overall for participating economies.

Report finds solar farms can enhance biodiversity [sustainable views]

• Finance & Investment in Nature-Positive Energy, a research initiative led by York University has published a report on how financing solar farm expansion could enhance biodiversity in the UK. The paper suggests that monitoring ecological indicators on solar farms can help accelerate their use of a nature-positive solution.

Nature study finds land conversion pressures 460 million ha of wildlands worldwide [nature]

• A new study has been published in Nature, using a global land map to construct a conversion pressure index (CPI) measuring past rates of anthropogenic change to project potential conversion risk for different ecosystems. The study found that nearly 23% of land across 200 countries has a relatively high conversion pressure, potentially impacting 460 million ha of intact natural lands.

Check out our Nature-based Solutions Investment Platform Here!

‍The Nature Tech Market. Necessary, Emergent, Dynamic

Capital for Climate, along with its partner, Nature4Climate, released a first-of-its-kind landscape analysis of the nature tech market. This report illuminates a burgeoning sector that will help protect, manage, and restore nature.Click here for the report!

If there is an organization that you would like to nominate to be profiled on Capital for Climate's NbS Investment Platform and/or featured in our newsletter, please submit the request through the appropriate link below:

‍Funds & Vehicles Submission‍Companies Submission‍Newsletter Submission