Net Zero Investor 7/24 - 7/30

Individual Deals and Market Watch

Entering a new era, two climate-focused funds close on more than $12bn last week.

Brookfield announces initial US$7 billion closing for Brookfield Global Transition Fund [Intrado]

• Brookfield Asset Management (NYSE: BAM, TSX: BAM.A) (“Brookfield”) today announced an initial US$7 billion closing for the Brookfield Global Transition Fund (“BGTF” or the “Fund”), establishing BGTF as the largest fund focused on the global transition to a net-zero economy. The Fund will build on Brookfield’s leadership in renewable power and deep operating capabilities to scale clean energy and invest capital to catalyze the transformation of carbon-intensive businesses to achieve Paris-alignment.

TPG announces $5.4 billion first close of TPG Rise Climate Fund [Business Wire]

• TPG Rise Climate, the climate investing strategy of TPG’s global impact investing platform TPG Rise, today announced the first close of $5.4 billion in subscriptions to its inaugural fund. With the fund’s first close, TPG Rise Climate is bringing together a unique blend of capital from some of the world’s largest institutional investors and over 20 leading companies to invest in the entrepreneurs and businesses building climate solutions around the world. TPG Rise Climate has set a hard cap of $7 billion in total capital commitments and expects to hold a final close in the fourth quarter of 2021.

Rivian raises another $2.5B, pushing its EV war chest up to $10.5B [Tech Crunch]

• Rivian announced Friday, July 23rd, that it has closed a $2.5 billion private funding round led by Amazon’s Climate Pledge Fund, D1 Capital Partners, Ford Motor and funds and accounts advised by T. Rowe Price Associates Inc.

Tesla quarterly profits top $1 bn for 1st time [International Business Times]

• US electric carmaker Tesla reported its first-ever quarterly profit above $1 billion as it reiterated its 2021 production targets despite supply chain upheaval.

Carbon fund turns one with $540 million assets and zero outflows [Bloomberg Green]

• The KraneShares Global Carbon ETF (ticker KRBN) celebrated its birthday Friday, up about 80% since its inception with $540 million in assets and not a single day with a net outflow.
• That’s a testament to the boom in carbon credits, tradable permits that allow companies to emit carbon dioxide. As prices increase, the idea is that polluting businesses will invest in reducing emissions rather than buying the credits.

AXA IM Alts acquires €436m Australian Forestry business [IPE Real Assets]

• AXA IM Alts has made its largest investment yet in timberland, with the acquisition of the Green Triangle Forest Products estate in Australia from US-based Global Forest Partners.
• The selling price is believed to have been more than A$700m (€436m). AXA IM Alts declined to comment on the value of the transaction.
• The acquisition will increase the €162bn alternatives investment manager’s forestry portfolio from a current 58,000 hectares located in France, Iceland and Finland to over 80,000 hectares.

ACME Solar Holdings raises $334 million via green bonds [Business Line]

• ACME Solar Holdings Private Limited (ACME) has raised $334 million through the US dollar denominated green bonds. The funds will be used in the 12 projects of the company. The bonds will be issued by offshore company and proceeds of the bonds will be used for subscription of non-convertible debentures issued by ACME’s projects, a company statement said on Friday.
• Meanwhile, the bonds will have a tenor of five years and a coupon rate of 4.7 per cent. The issue was oversubscribed by over 3 times, which is a testimony of the strong business fundamentals of the underlying assets, it said.

Singapore's GIC invests $240 mln in Arctic Green Energy [Reuters]

• Singapore sovereign wealth fund GIC (GIC.UL) will invest $240 million in Arctic Green Energy to support the renewable energy firm's expansion in Asia and Europe, the companies said on Monday, 7/26.

Plant-based NotCo achieves its target of unicorn status, securing $235M from investors including Lewis Hamilton & Roger Federer [Vegconomist]

• NotCo, has raised $235 million in a Series D funding round led by Tiger Global, bringing the company’s valuation to $1.5 billion, thus surpassing its target of achieving unicorn status. Athletes Lewis Hamilton and Roger Federer and musician and DJ Questlove participated in the round.
• The Not Company is a Foodtech, that reinvents animal-based foods using only plants.

Sunnova prices USD-212m solar securitisation [Renewables Now]

• US residential solar and battery storage company Sunnova Energy International Inc (NYSE:NOVA) last week priced a USD-212-million (EUR 180m) securitisation of residential solar and battery loan arrangements.

Soltage closes $130m debt facility led by Silicon Valley bank to finance national solar portfolio [Soltage]

• Soltage LLC, a leading independent renewable power producer, and Silicon Valley Bank, an innovative bank active in the renewable energy and technology sector, announced that it raised a $130M debt facility led by Silicon Valley Bank. The investment will finance a 110 MW national portfolio of projects across six states: North Carolina, South Carolina, Maine, Illinois, Virginia and Maryland.

Italian oil major, Eni inks deal to acquire 1.2-GW wind, solar portfolio in Spain [Renewables Now]

• Madrid-based private equity manager and real assets investor Azora said Monday that it has signed an agreement to sell a 1.2-GW wind and solar portfolio in Spain to Italian oil-and-gas major Eni SpA (BIT:ENI).

Macro Commitments

EC greenlights France's EUR-30.5bn state support for renewables [Renewables Now]

• The European Commission (EC) said that it has approved France’s EUR-30.5-billion (USD 36.0bn) state aid scheme aimed at supporting power production from renewable energy sources.

ArcelorMittal to invest $10Bln to reduce carbon intensity by 25% by 2030 [MarketWatch]

• ArcelorMittal said that it plans to invest $10 billion as part of a new carbon-intensity target it set for its global operations.
• The steel-and-mining company said it aims to reduce its carbon intensity--a measure of the emissions companies add to the atmosphere for every dollar of sales--by 25% by 2030 across its operations.

Naturgy to pour EUR 8.7bn in renewables in 2021-2025 [Renewables Now]

• Spanish power and gas utility Naturgy Energy Group SA (BME:NTGY) will set aside some 60% of its EUR-14-billion (USD 16.6bn) 2021-2025 spending plan to boost renewable energy capacity.

Largest voluntary carbon deal we have seen to date, Hartree Partners to channel $2 billion toward new carbon credits [Mongabay]

• Hartree will be working with the conservation organization Wildlife Works to create 20 million voluntary carbon credits a year, beginning in 2023. According to Hartree, this will represent a 40% increase in the availability of verified, avoided-deforestation projects and reduce emissions from deforestation by 20 million tons each year, the equivalent of removing 4.3 million cars from circulation. No specific financial details of the deal have been shared.

Sol Systems partners with KKR to scale impact-focused renewable energy solutions (committing up to $1bn) [KKR]

• Sol Systems, LLC (“Sol Systems” or the “Company”), a leading US renewable energy solutions firm, and KKR, a leading global investment firm, today announced that Sol Systems has received a significant minority investment from KKR to scale the Company’s Impact + Infrastructure approach. Sol Systems and KKR also announced a new strategic partnership in which KKR is committing up to $1 billion to acquire shovel-ready projects, helping fund Sol Systems’ development of contracted renewable energy and storage assets to meet the growing sustainability needs in North America.

Scottish Widows 'reboots' £250m environment fund to screen against fossil fuels [edie]

• The new fund is focused on investing in “great green” British businesses and will be screened to ensure that fossil fuels are completely ineligible to be supported through it. It will aim to invest in companies making a positive impact to the environment and those that are leading their sectors through progressive policies.

Pathways, Frameworks, Case Studies, Research, Climate Science

Groundbreaking: Startup claims breakthrough in long-duration batteries [WSJ]

• A four-year-old startup says it has built an inexpensive battery that can discharge power for days using one of the most common elements on Earth: iron.
• Form Energy Inc.’s batteries are far too heavy for electric cars. But it says they will be capable of solving one of the most elusive problems facing renewable energy: cheaply storing large amounts of electricity to power grids when the sun isn’t shining and wind isn’t blowing.

Sustainability-linked loan supply outpaces green bonds and loans amid US surge [S&P Global]

• Global issuance of sustainability-linked loans has far surpassed that of green loans and bonds as companies in the U.S., including those in transition sectors, rapidly embrace the instrument as an alternative to traditional environmental, social and governance debt.

Fossil fuel use falls to record low in 2020 as renewable generation surges [iNews]

• The amount of electricity the UK generated from fossil fuels fell to a record low last year, official data has confirmed, with renewables producing more power than coal or gas for the first time in British history.
• Power produced by sunshine, wind, biomass, and water delivered 43.1 per cent of UK electricity last year, compared to 37.7 per cent from coal and gas, according to official figures released today by the Government.

US seen to reach 21 GW of offshore wind by 2030, short of target [Renewables Now]

• The US is likely to fail in achieving President Joe Biden’s offshore wind target of 30 GW by 2030 as it is expected to install 21 GW of offshore wind turbines by the end of the decade, according to IHS Markit (NYSE:INFO).