Climate Investment Newsletter 9/19 - 9/25
Individual Deals and Market Watch
Mirova energy transition fund raises €1.6bn [Environmental Finance]
- The Mirova Energy Transition 5 fund invests in ‘proven’ technologies such as onshore wind power and hydroelectricity as well as low-carbon mobility sectors. It has already deployed €600 million in France, Poland and Belgium.
MN and Glenmont launch €700m renewable energy fund [Environmental Finance]
- Dutch investor MN has provided €600 million on behalf of one of its clients, the Pension Fund for Metalworking and Mechanical Engineering. Nuveen’s parent company TIAA has also backed the strategy with a $100 million investment.
KKR invests in Hero Future Energies in $450 million transaction [businesswire]
- KKR, a leading global investment firm, and Hero Future Energies (“HFE” or the “Company”), the renewable energy arm of the Hero Group, today announced the signing of definitive agreements under which KKR and the Hero Group will invest $450 million in the Company. This investment will position HFE for continued growth and support its efforts to expand its renewable energy capacity and capabilities across technologies such as solar, wind, battery storage, and green hydrogen…
InnovaFeed nabs $250M to extend its vertical insect farms to the US [Tech Crunch]
- InnovaFeed, a vertical insect farm operator that’s rearing insects for animal and plant nutrition, has raised $250 million in a series D round of funding led by Qatar Investment Authority (QIA), Qatar’s sovereign wealth fund.
ICG invests $240 million in French EV charging firm Zeplug [Reuters]
- Britain's Intermediate Capital Group (ICP.L) is investing 240 million euros ($240 million) in Zeplug, a French firm specialising in electric vehicle (EV) charging services in multi-occupant and office buildings, the companies said.
Yard Stick and Partners Secure $225M in USDA Grants for Climate-Smart Agriculture [Bakersfield]
- Yard Stick PBC, a seed-stage startup developing a low-cost soil carbon measurement technology, announced today that six partner projects were selected for a total of $225 million in investment from the USDA’s Partnerships for Climate-Smart Commodities initiative. As the selected projects’ soil carbon stock quantification partner, Yard Stick is earmarked to receive an estimated $18 million in funding.
Klima transition fund closes with €210 million [Environmental Finance]
- The fund, which initially targeted a raise of €150 million, takes minority stakes in companies working in energy transition sectors. This includes low-carbon solutions, smart power grids, energy storage, renewables and sustainable transportation.
EV charging operator Bump unlocks $180 million [Tech Crunch]
- French startup Bump has signed a multiyear financing partnership with DIF Capital Partners in order to roll out more charging stations for electric vehicles and double down on growth in general.
Barbados strikes $150m biodiversity debt conversion [Environmental Finance]
- The Nature Conservancy (TNC) has announced a debt conversion with the government of Barbados, which it says will “unlock” $50 million for biodiversity protection projects in the country.
Macro Commitments
Norway’s $1.2 trillion investment fund sets 2050 climate target [NYT]
- The “net zero” carbon goal aligns the fund, which has stakes in over 9,000 companies, with many other large asset managers.
China's Liaoning province plans $121b clean energy overhaul [The Straits Times]
- A north-eastern province that was once one of China's major coal and industrial hubs has launched a 600 billion yuan ($83 billion) plan to expand clean energy production.
EU governments carving out €20 bn in carbon market exemptions for shipping [Transport & Environment]
- Government ministers are in the process of carving out €20 billion worth of exemptions for the shipping industry in the new maritime carbon market (ETS), according to a new analysis. Transport & (T&E), who carried out the report, calls on governments to put the polluter pays principle first and end unwarranted giveaways to an industry with a poor environmental record.
Sustainable energy firm Avangrid to invest $14.6 billion to 2025 [El Pais]
- Iberdrola’s US subsidiary informed analysts and investors about an ambitious growth plan that includes acquiring New Mexico company PNM Resourcesa
TNC blue bond programme aims to raise $10bn by 2030 [Environmental Finance]
- TNC's Blue Bonds for Ocean Conservation programme aims to hit the figure through completing up to three deals a year, Slav Gatchev, managing director of sustainable debt at Nature Vest, TNC's impact investing team, told Environmental Finance.
Iron ore giant Fortescue to outlay $6 billion to reach zero emissions by 2030 [Carbon Pulse]
Australia eyes USD 2.8bn of US clean energy investments from CEDI deal [Renewables Now]
- Australia expects to receive up to USD 2.8 billion (EUR 2.86bn) of clean energy infrastructure investment from major US corporations, among them Google and Amazon, under a deal signed on Thursday by the governments of the two countries.
CWP Global unit plans EUR-614m onshore wind project in Bulgaria [Renewables Now]
- Dobrotich Wind, a subsidiary of Australian renewables developer CWP Global, is planning to invest BGN 1.2 billion (USD 612.2m/EUR 613.5m) to build a 74-turbine onshore wind park in Bulgaria's northeast region.
AXA launches €500m forestry impact fund [IFR]
- Alternative investor AXA IM Alts has launched a €500m Natural Capital Strategy impact fund that will support reforestation and conservation projects in emerging markets and issue voluntary carbon credits.
Coca-Cola bottler raises €500m for sustainability schemes in green bond issue [edie]
- Coca-Cola Hellenic Bottling Company has successfully issued its first green bond, raising €500m in support of its environmental sustainability projects.
- The firm is backed by investors such as Anglo American, Toyota Ventures (backed self-driving startup May Mobility), and top-tier family offices such as the Piëch and Oldendorff families. Notable portfolio companies include H2Pro, INERATEC, GA Drilling, BeZero, and Reverion.
Pathways, Frameworks, Case Studies, Research, Climate Science
- Investing in biodiversity makes both environmental and economic sense. Estimates by the World Economic Forum suggest that protecting nature and increasing biodiversity could generate business opportunities worth $10 trillion a year and create nearly 400 million new jobs.
Africa agrifoodtech startups raise $1bn in 5 years, but just 1% of global investment [AFN]
- Africa has seen a substantial rise in the volume of venture capital flowing into the continent. While the majority of investments go to Africa’s surging fintech sector, agrifoodtech startups are also seeing a bump in investor interest.
Decarbonising the shipping industry will cost more than $1 trillion [NewScientist]
- More than $1 trillion of investment would be required to decarbonise the shipping industry by 2050, according to a report released 21 September at the Global Maritime Forum summit in Brooklyn, New York, during Climate Week NYC.
Global carbon capture and storage market to reach $9.4 billion by 2026 [Cision]
- The global market for carbon capture and storage (CCS) is projected to be valued at US$ 9.42 Bn in 2026. Growing from a market value of US$ 4.17 Bn in 2020, the CCS market is projected to exhibit substantial growth at a CAGR of 15.7% over the forecast period.
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