Your Newsletter at a Glance
Commentary by C4C
With many discussions and some commitments out of the G20 summit this past weekend in India, few plans for climate goals came to fruition - although a $4tn/year price tag was acknowledged to see a full green energy transition. This comes just after researchers at the University of Copenhagen conclude that human activity now exceeds six of nine planetary boundaries.
In deal flow and commitment news, this week sees public offerings announced by Barito Renewables and Ivanhoe Electric. Multiple new large funds launch across the globe, totaling $4.3bn.
Some significant government moves:
- California legislation passes a bill that will require companies to publicly disclose their GHG emissions, a policy that has the potential to make waves across the nation and globe.
- Peru commits to a $20mn debt-for-nature swap to protect parts of the Amazon.
- US agencies fund $1.1bn to nature-based solutions, with 90% going toward urban green spaces.
- Denmark plans a new green bond.
Multiple sectors beyond energy see $1bn or more in financing:
- The steel sector sees more commitments at $1.5bn, totaling $34.5bn over the last two weeks.
- Agriculture receives $1.8bn this week, with a $570mn acquisition of Brazil-based Biotrop Participacoes SA and Singapore launching a $1bn fund to support agrifood systems.
- Spain allocates a whopping $12.85bn for water conservation to address the impact of drought, heavily impacting the ag sector.
- The Green Climate Fund (GFC) receives new commitments totaling $2.3bn from the UK and Korea.
In a win for alternative proteins, a Nature paper shows how a global dietary shift towards plant-based animal product alternatives can have a huge impact on GHG emissions by 2050.
C4C News and Events
**new section alert!**
Register for our Virtual NbS Investment Opportunity Roadshow on September 28th, the first of two events in Capital for Climate's Brazil NbS Investment Series. The educational Roadshows will showcase leading NbS-focused funds, project developers, and enterprises, providing investors a preview of the nature-positive pipeline to achieve net zero and biodiversity targets.
Attendees will see curated opportunities spanning agroforestry, the forest bioeconomy, regenerative agriculture, ecosystem restoration, restoration of degraded pastureland, sustainable livestock management, nature tech and more.
Climate Finance Highlights
Deals and commitments above $100mn
Market Watch
BP commits to Germany with $11bn low-carbon investment push [Reuters]
- BP (BP.L) plans to invest up to 10 billion euros ($10.7 billion) in low-carbon fuels, renewables and EV charging in Germany by the end of the decade to rival local power firms, as competition over the energy transition of Europe's largest economy intensifies.
Qatar plans £4bn ($5bn) UK investment to create climate tech unicorns [UK Tech]
The UK’s climate tech sector could receive a £4bn investment from Qatar as the Middle Eastern nation looks to establish a green energy research facility and £1.5bn to seed development of new companies in southern England.
Research
- IFC mobilizes $6.5 billion to Brazil in the fiscal year 2023 to help boost the country's economic growth while strengthening key sectors, boosting climate finance, and creating more jobs. Of this total amount, $1.71bn comes from IFC's own-account investments, while $4.16bn comes from third party investors.
Denmark plans new 10-year green bond [Market Watch]
- Denmark hires Danske Bank, J.P. Morgan, Nordea and SEB to arrange a global investor call and series of fixed-income meetings to update investors on its Green Bond Framework and issuance strategy.
California lawmakers vote to require disclosure of greenhouse emissions [NY Times]
- The California Legislature passes a landmark bill that would require major companies to publicly disclose their greenhouse gas emissions, a move with national and global repercussions in governments’ efforts to fight climate change.
- The G20 leaders agree to pursue tripling renewable energy capacity globally by 2030 and accepted the need to phase-down unabated coal power, but stopped short of setting major climate goals. The group did not provide any plan to amend existing policies and targets in order to achieve the target of ramping of renewables. The convening also acknowledges that $4 trillion a year would be needed to pay for a green energy transition, but did not lay out any pathway to it.
Nature-based Solutions Highlights
Deals and commitments above $1mn
Market Watch
- By leveraging $1bn in climate finance through a public-private blended financing model, the GrowBeyond Fund has the potential of supporting over 200,000 farmers over the next 10 years to access finance and technical assistance.
Biobest to buy Biotrop for €532mn ($567.3mn) to expand in Brazil [Bloomberg]
- Biobest Group NV, a Belgian developer of biological crop-protection products, agrees to buy Biotrop Participacoes SA, a provider of biological and natural farming solutions in Brazil, for an enterprise value of about €532 million.
Indigo’s $250mn raise boosts agricultural carbon credits generation [Carbon Credits]
- Indigo Ag, raises $250 million to further grow its sustainable agriculture programs and boost farmers’ revenues with carbon credits.
Research
Panama’s ambitious 30x30 plan: Protecting its rich biodiversity [McKinsey and Co.]
- Milciades Concepción, Panama’s Minister of Environment, reflects on the country’s conservation program designed to safeguard its natural resources and drive a sustainable economy.
- Researchers use a global economic land use model to assess the food system-wide impacts of a global dietary shift towards plant-based animal product alternatives. They find a substantial reduction in the global environmental impacts by 2050 if globally 50% of the main animal products (pork, chicken, beef and milk) are substituted—net reduction of forest and natural land is almost fully halted and agriculture and land use GHG emissions decline by 31% in 2050 compared to 2020.
Six of nine planetary boundaries now exceeded [Eureka Alert]
- A new study from researchers at University of Copenhagen updates the planetary boundary framework and shows human activities are increasingly impacting the planet and, thereby, increasing the risk of triggering dramatic changes in overall Earth conditions, with biosphere integrity and biogeochemical flows being some of the worst impacted.
Climate Finance
Deals and commitments above $100mn
Individual Deals & Market Watch
Verkor secures €2bn ($2.1bn) for low-carbon battery gigafactory launch [Tech EU]
- Verkor, a French low-carbon battery manufacturer, secures over €2 billion in Series C funding for a new gigafactory in Dunkirk.
UK makes $2bn pledge for Green Climate Fund [Times of India]
- UK announces it will provide $2 billion to the Green Climate Fund, raising hope that developed countries collectively could meet the GCF target for the first time in 2023.
- Tata Steel and the U.K. Government announce an agreement to invest in Electric Arc Furnace steelmaking at the Port Talbot site with a capital cost of £1.25 billion. Tata Steel U.K. will soon commence consultation on the proposal and the transition period to decarbonize the iron and steelmaking facilities at Port Talbot.
- Almost $1 billion will be disbursed by the African Development Bank (AfDB) to young entrepreneurs to help tackle climate change on the continent.
Tom Steyer, launches Galvanize, a $1bn growth-focused climate investment fund [Bloomberg]
- Galvanize Climate Solutions announces that it closed its Innovation + Expansion Fund, which will invest more than $1bn in startups aiming to provide climate benefits in the next decade. The fund is looking for companies that can make a relatively immediate impact.
The Rockefeller Foundation commits over $1bn to advance climate solutions [Rockefeller Foundation]
- The Rockefeller Foundation announces it plans to invest over $1 billion over the next five years to advance a just global climate transition.
Maersk launches $750mn dollar green bond [Arabian Business]
- Container shipping giant A.P. Moller-Maersk A/S is reportedly selling dollar-denominated green bonds for the first time ever, with a $750 million issue.
- Sunrun (Nasdaq: RUN), a provider of residential solar, storage and energy services, announces it priced a securitization of leases and power purchase agreements. The transaction was structured with $440mm Class A-1 notes which were marketed in a public asset backed securitization, whereas the $275mm Class A-2 notes were privately placed.
BlackRock and SGX launch $580mn climate action fund, Singapore’s largest equity ETF [Straits Times]
- The Singapore Exchange (SGX) and BlackRock, the world’s largest asset manager, have rolled out a landmark climate action fund to spur sustainable investing in Asia. The iShares MSCI Asia ex-Japan Climate Action ETF (exchange-traded fund) has assets under management of US$426 million (S$580 million) – making it the largest equity ETF launched in Singapore.
Edelweiss Alternatives aims to raise $500mn for its first climate fund [Reuters]
- India's Edelweiss Alternatives launches its first climate fund and is aiming to raise up to $500 million from overseas institutional investors.
- Ascend Elements, a U.S.-based manufacturer of sustainable, engineered battery materials for electric vehicles, announces $542 million in new equity investments, including $460 million in Series D investments and $82 million of additional investments from earlier this year.
DFC approves up to $425mn for Tata Power renewable energy project [Economic Times]
- The US International Development Finance Corporation approves a financing of up to USD 425 million (Rs 3,521 crore) to Tata Power Renewable Energy Ltd for setting up a 4.3 GW solar cell in Tamil Nadu by its subsidiary.
Juniper Green Energy gets $350mn investment [The Economic Times]
- India’s Juniper Green Energy, an independent renewable energy power producer, says it received a $350-million investment by At Capital Group and Vitol. This investment will be used to to triple its operational capacity to 2.5 GW by 2026, as well as other development plans.
Korea to make fresh $300mn contribution to Green Climate Fund [Korea Times]
- Korea will make a $300 million contribution to the Global Climate Fund (GCF), as part of the country's commitment to the world's battle with climate change, President Yoon Suk Yeol announced during the G20 Summit in New Delhi.
Novo Nordisk owner invests $290mn in energy transition fund [Reuters]
- Novo Holdings will invest about 2 billion Danish kroner ($290 million) in a new fund, managed by Glentra Capital aiming to generate returns through renewable energy investments.
Boston Metal closes $262mn Series C funding round [Boston Metal]
- Boston Metal, announces the close of its Series C fundraising, bringing the series total to $262 million. With the funds Boston Metal will accelerate deployment of its high-value metals business, grow its team globally and commercially demonstrate its Molten Oxide Electrolysis (MOE) platform for decarbonized steelmaking.
Geothermal energy-focused Barito Renewables eyes $228mn from Indonesia IPO [Deal Street Asia]
- PT Barito Renewables Energy Tbk, the geothermal energy-focused unit of the Indonesian conglomerate PT Barito Pacific Tbk, is looking to raise up to 3.5 trillion rupiah ($228 million) through a domestic initial public offering (IPO).
NordicNinja, launches second fund at €200mn ($213.5) for climate and deep tech [Tech EU]
- NordicNinja, Europe’s largest Japanese-backed VC, announces a €200 million fund for climate tech and deep tech startups. The firm aims to facilitate digital transformation and bridge Japan and Europe.
Lyten EV battery startup receives $200mn in a Series B [Tech Crunch]
- Lyten, a startup in lightweight, lithium-sulfur batteries for electric vehicles, announces a $200mn from a Series B led by Prime Movers Labs, a venture firm from OpenGov co-founder Dakin Sloss.
- Heliene Inc., a provider of North American-made solar PV modules, announces it closed $170M in funding, led by a group of key partners and customers. The funding includes $20M in equity and $150M of debt, to be utilized for Heliene’s expansion and the creation of well-paying jobs in manufacturing within the clean energy transition.
Ivanhoe Electric announces pricing and upsizing of public offering ($160mn) [Ivanhoe Electric]
- Ivanhoe Electric, an electric mining technology platform, announces the pricing of an underwritten public offering of 11,851,852 shares of Ivanhoe Electric’s common stock at a public offering price of US$13.50 per share, with gross proceeds from the offering expecting to be approximately US$160 million.
Djibouti unveils $122mn wind farm in green grid push [Bloomberg]
- Djibouti inaugurates its first-ever wind farm as the country looks to wean itself off imported fossil fuels and achieve a fully renewable energy powered grid by 2035.
- Accenta, a company specializing in the decarbonization of heating and air conditioning in buildings, announces a fundraising of 108 million euros. This operation is subscribed by Eren Groupe, which acquired a stake in Accenta in 2019 and which on this occasion takes operational control of the company, and by the Siloé Infrastructures fund, managed by Crédit Mutuel Impact.
UK's Open Cosmos raises $50mn to expand its climate change monitoring satellites solutions [Tech EU]
- UK-based Open Cosmos, a satellite company offering solutions to monitor and combat climate change, raises $50 million in Series B.
Nature-based Solutions
Deals and commitments above $1mn
Individual Deals & Market Watch
Spain to invest $12.9bn to alleviate drought impact [Reuters]
- Spain will spend more than 12 billion euros ($12.85 billion) to alleviate the impact of the long-running drought afflicting the country. Since September of last year, average rainfall in Spain has been 17% lower than the average recorded between 1991 and 2020, leading water levels in reservoirs to drop and crippling output in the agriculture sector.
- The U.S. Department of Agriculture’s Forest Service awards more than $1 billion in competitive grants to plant and maintain trees, combat extreme heat and climate change, and improve access to nature in cities, towns, and suburbs where more than 84% of Americans live, work, and play.
Plant-based meat startup Meati raises $50mn Series C extension [Axios]
- Meati Foods, a US-based maker of plant-based meat, raises $50mn a Series C extension from investors such as Bond, Congruent Ventures and Revolution Growth.
- The Department of the Interior announces more than $40.6 million in grants to 10 states and the U.S. Virgin Islands to support land acquisition and conservation planning projects on over 7,200 acres of habitat.
USAID, Tanzania launch $24mn project to curb post-harvest food losses [Farmers Review Africa]
- The United States Agency for International Development (USAID) and the United Republic of Tanzania launch a USD 24 million project geared towards addressing food loss and waste that has been one of the leading causes food insecurity and dwindled income for farmers in the country.
Bezos Earth Fund announces $22.8mn for locally led restoration in Africa [Bezos Earth Fund]
- Funding will enable locally led restoration of 600,000 hectares critical for climate and livelihoods.
Peru and US strike $20mn Amazon-focused debt for nature deal [Reuters]
- The United States strikes a deal with Peru that will help the Latin American country restore and protect some of its parts of the Amazon rainforest in return for a $20 million cut in its debt.
Toopi Organics lands $17mn to turn urine into crop biostimulants [Agfunder News]
- France-based Toopi Organics raises €16 million ($17.2 million) in a Series A round for its urine-based biostimulants business for agriculture. International fund VisVires New Protein led the round with participation from European impact funds Edaphon, Noshaq, MAIF Impact, and BNP Paribas Dévelopment.
- The US Development Finance Corporation (DFC) commits to investing $15 million in Wavemaker Impact, a climate-tech venture capital fund based in Singapore that covers Southeast Asia. Each company created by Wavemaker Impact has the potential to abate 100 million metric tons of carbon and achieve $100 million revenue. To date, the firm has launched six companies in areas such as biochar for carbon sequestration, regenerative agriculture, degraded land restoration, food waste, and sustainable fuels, residential solar mortgage integration,
Belize obtains $7mn IDB loan to boost sustainable blue economy [Breaking Belize News]
- Веlіzе partners wіth thе Іntеr-Аmеrісаn Dеvеlорmеnt Ваnk (ІDВ), ѕесurіng а $7 mіllіоn loan to support Веlіzе’ѕ blue есоnomy and focus оn thе ѕuѕtаіnаblе mаnаgеmеnt оf its mаrіnе rеѕоurсеѕ.
- AI-powered regenerative nature based services provider ReSeed announces a Seed raise of $4.6 million led by One Small Planet. ReSeed partners with the globe's 600 million smallholder farmers to monetize their global impact, bringing carbon credits directly from farmers to the market. Founded in 2022, ReSeed develops carbon credits with traceability from beginning to end of lifecycle.
HN Novatech secures $4mn for seaweed-extracted heme meat alternatives [Vegconomist]
- South Korean food ingredient company HN Novatech announces it secured $4 million in a Series-A bridge round to commercialize its flagship ingredient ACOM-S, a seaweed-extracted heme for plant-based meat applications. The round was led by VC Logan Ventures, which said it was partnering with HN Novatech to meet the global demand for clean-label meat alternatives.
- The Soil Health Institute (SHI) and Cargill are coming together to advance implementation of regenerative agriculture practices through the promotion of water stewardship within agricultural supply chains. This 3-year, $3 million partnership will equip farmers, conservation planners, and sustainability experts across North America with innovative tools to enhance drought resilience, improve soil health, and encourage sustainable water use.
Oceanium lands €2.4mn ($2.6mn) to expand seaweed processing operation [The Fish Site]
- The funding will be used to scale-up the company’s biorefinery technology in order to produce seaweed-based products, such as ingredients for food and cosmetics, at a commercial level.
Treefera raises $2.2mn for real-time forest data and carbon Credit analysis [Tech EU]
- Treefera, an AI-powered data platform focused on MRV for forest data and conservation carbon credits, announces a $2.2 million Pre-Seed funding round.
- Three companies have received a total of €1.8 million from EIT Food to develop innovative products to reduce the cost of producing cultivated meat within the next two years: LenioBio, 3D Bio-Tissues Ltd, and BioBetter.
Barakah raises $1.5mn Seed round for its food waste solution [Wamda]
- Saudi-based Barakah, an online marketplace transforming the way food retailers manage their surplus products, raises $1.5mn in a seed round led by Hambro Perks Oryx Fund, with participation from 500 Global, +VC, KAUST Innovation Ventures, Annex Investments, and angel investors.
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