Your Newsletter at a Glance
Note from the author: This week the EU pledged to invest $50bn into Latin America across sectors from clean energy to critical raw materials, and the Biden administration launched a $20bn initiative to boost the green economy designed to mobilize private capital into clean tech projects. India-based Tata Motors will be building a $5.2bn EV battery plant in England to help the UK meet its goals for the electric vehicle transition.
In nature-based solutions, Alphea.Bio raised $78mn in a Series C to develop pesticide alternatives to boost crop growth and FLORA Ventures raised $50mn to invest in sustainable agrifood tech. French insurer AXA fund is investing $49mn into reforestation projects in Brazil led by local startup Mombak.
Deal Count: This week covers over $100bn in deals and commitments in climate finance and almost $2bn in NbS around the world. Enjoy the 29 summaries below!
Climate Finance
Deals and commitments above $100mn
Market Watch
EU pledges to invest USD $50bn in Latin America [The Brazilian Report]
- Ursula von der Leyen, the president of the European Commission, announced that the European Union and its member states will invest more than EUR 45bn (USD $50bn) in Latin America and the Caribbean through 2027. Ms. von der Leyen said the investments will be made by “Team Europe,” an expression that includes the EU and its member states, as well as the European Investment Bank (EIB), and the European Bank for Reconstruction and Development (EBRD). “We agreed on sectors and value chains to prioritize, from clean energy and critical raw materials to health and education,” Ms. von der Leyen added.
Biden EPA launches $20bn initiative to boost green economy [Common Dreams]
- U.S. President Joe Biden's administration opened a pair of grant competitions with a combined $20 billion in public funding designed to "mobilize private capital into clean technology projects." The initiative aims to "create good-paying jobs and lower energy costs for American families, especially in low-income and disadvantaged communities, while cutting harmful pollution to protect people's health and tackle the climate crisis," the U.S. Environmental Protection Agency (EPA) explained in a statement. The $14 billion National Clean Investment Fund (NCIF) seeks to expand the deployment of green technologies nationally while the goal of the $6 billion Clean Communities Investment Accelerator (CCIA) is to increase local green financing capacity via community lenders.
Tata’s new $5.2bn EV battery plant catapults UK from zero to hero [Clean Technica]
- Tata Motors, a leading Indian automaker company, has announced that it will build a $5.2 billion EV battery plant in England for its Jaguar Land Rover business. The new factory will have an initial output of 40 gigawatt-hours, which puts it in the running with some of the larger EV battery plants in Europe. The $5.2 billion (£4 billion) investment is expected to create up to 4,000 direct new jobs, with thousands more to follow in the supply chain. The Tata gigafactory alone is expected to account for about 50% of the battery capacity needed for the UK to meet its goals for the electric vehicle transition.
Research
Developing nations need $1.7trn clean energy investments [Trade Arabia]
- The United Nations Conference on Trade and Development's (UNCTAD) World Investment Report 2023 shows that much of the growth in international investment in renewable energy, which has nearly tripled since the adoption of the Paris Agreement in 2015, has been concentrated in developed countries. Total funding needs for the energy transition in developing countries are much larger and include investment in power grids, transmission lines, storage and energy efficiency, it said. Developing countries need renewable energy investments of about $1.7 trillion annually, but attracted foreign direct investment in clean energy worth only $544 billion in 2022. They argue there is an urgent need to support these nations to enable them to attract significantly more investment for their transition to clean energy.
4 climate tech startups to watch this year [GreenBiz]
- GreenBiz highlights four startups working in the circular economy, industrial waste, energy efficiency, solar, and carbon accounting: Urban Machine, Sealed, Open Sesame, and Carbon Chain.
Nature-based Solutions
Deals and commitments above $1mn
Market Watch
Aphea.Bio raises €70mn ($78mn) Series C [sifted]
- Belgian agriculture biotech company Aphea.Bio, which develops pesticide alternatives to boost crop growth, has raised a €70m Series C from investors including Innovation Industries, Korys Investments, the Bill & Melinda Gates Foundation and BNP Paribas Fortis. Existing investors including ECBF and Astanor also pitched in. The all-equity round is Belgium’s second largest so far this year.
FLORA Ventures raises $50mn to invest in sustainable agrifood tech [CTech]
- Gil Horsky and Esther Barak-Landes completed the initial raise with strategic partners including Haifa Group, Harel Group, and Sadot Kibbutzim, a co-op bringing together more than 185 Kibbutzim. FLORA Ventures invests in early-stage startups from Israel and Europe. They completed the initial raise with strategic partners including Sadot Kibbutzim, a co-op bringing together more than 185 Kibbutzim with an agricultural output of over $3 billion exported to over 100 countries. The Kibbutzim also offer the fund’s portfolio proprietary access to agricultural land, production capabilities and expertise for initial proof of concept. Some of FLORA’s other anchor investors in this first closing are leading Family Offices and Haifa Group, a world leader in plant nutrition and special fertilizers, and Harel Group, Israel’s largest insurance and finance group with more than $100 billion assets under management (AUM).
AXA fund to invest $49mn in Brazil reforestation projects [Reuters]
- An alternative investment vehicle controlled by French insurer AXA said it will inject $49 million into reforestation projects in Brazil led by local startup Mombak. AXA IM Alts, which has over 185 billion euros ($208 billion) under management, will take a minority stake in the startup to help scale up operations and technology. Mombak, which is also backed by Bain Capital, will lead projects to reforest over 10,000 hectares of degraded pastureland, generating up to 6 million carbon credits.
Research
Farm fields don't just feed us. They store carbon. But a big question is how much [NBC New York]
- The article argues the importance of carbon storage in farm fields. They note that tilling the soil less, and growing more cover crops, can help farmers store more planet-warming carbon in fields. More plants take in more carbon dioxide, and soil microbes breathe out less carbon when undisturbed. That can mean money for participating farmers in the form of carbon offsets — payments that companies can make that support carbon storage in farms and, in theory, balance out their emissions elsewhere. Shalamar Armstrong, an associate professor of agronomy at Purdue University, runs a lab where researchers are investigating how farming management affects the amount of carbon in soil across different landscapes. He and others at Purdue have been studying soil samples that date back more than 40 years, comparing different types of tilling and cover crops to determine their long-term effects on carbon storage.
Danica Pension completes first biodiversity mapping of investments [IPE]
- Danica Pension has completed its first biodiversity mapping of its equity and bond investments in order to better manage investment risk, while working to restore and protect nature. The Danske Bank subsidiary is now the first Danish pensions company to publish results of how its investment strategy affects and depends on biodiversity. The biodiversity map supports the Montreal Biodiversity Agreement and acts as a new measure for setting future biodiversity targets, the firm announced. “Approximately two-thirds of investments have a potentially high impact on various ecosystems and biodiversity via their operation. In particular, they contribute to the loss of biodiversity through their CO2 emissions, pollution, and overuse of natural resources,” Danica stated.
Climate Finance
Deals and commitments above $100mn
Individual Deals & Market Watch
Tanzania carbon credit projects set for $20bn investment boost [Carbon Pulse]
- Tanzania’s burgeoning carbon credit industry is set to receive a substantial boost with investments worth more than $20bn expected from at least 20 companies from a number of countries.
EU Innovation Fund awards EUR 3.6bn ($4bn) to 41 clean tech projects [Renewables Now]
- The European Commission (EC) awarded more than EUR 3.6 billion (USD 4.04bn) in grants to 41 large-scale clean tech projects, a significant portion of which concern the renewable energy and green hydrogen sectors. The grants were awarded in the EU Innovation Fund’s 3rd call for large-scale projects, which attracted a total of 239 applications, including 196 that were deemed eligible and admissible for evaluation.
- A unique partnership between three traditional owner groups and a major clean energy investor is promising to establish a $3bn green hydrogen project in the far north of Western Australia. In what could be one of Australia’s biggest clean energy projects, more than a million solar panels will power electrolysers to produce 50,000 tonnes of green hydrogen a year. The East Kimberley Clean Energy project will be unveiled at the Australian renewable energy industry’s annual summit in Sydney. The new company – Aboriginal Clean Energy – will develop the ambitious project near the town of Kununurra. Three Indigenous groups will each have an initial 25% share in the company alongside climate crisis investment and advisory firm Pollination.
Thyssenkrupp gets EU approval for €2bn ($2.2bn) green steel aid [Bloomberg]
- Thyssenkrupp AG secured European Union approval for a €2 billion ($2.2 billion) package of state subsidies from the German government to invest in green steel production. It comprises €550 million in direct grants and a conditional payment of as much as €1.45 billion to be used to support Thyssenkrupp’s bid to decarbonize its steel production and accelerate renewable hydrogen uptake.
- The US Department of Energy (DOE) released a Notice of Intent (NOI), which includes a Request for Information (RFI) (DE-NOI-0202301), to invest up to $1 billion in a demand-side initiative to support the Regional Clean Hydrogen Hubs (H2Hubs). The H2Hubs program will help form the foundation of a national clean hydrogen network. Later this year, the DOE will announce the selection of 6 to 10 H2Hubs for a combined total funding of up to $7 billion in federal funding. The proposed mechanism outlined in the NOI will help connect the H2Hubs to prospective purchasers.
GCF Board approves new strategic plan and USD $756mn in new climate projects [reliefweb]
- The Board of the Green Climate Fund (GCF) concluded its thirty-sixth meeting in Incheon, Republic of Korea with several major outcomes for climate action. Notably, the Board adopted the Fund’s 2024-2027 Strategic Plan and approved USD $755.8 million of finance for new climate projects in developing countries. Co-chair Nauman Bashir Bhatti said, “The Board has given the green light to twelve new projects with a strong focus on increasing direct access and building resilience in the developing countries that are particularly vulnerable to the adverse impacts of climate change. With the new strategic plan approved, I am confident that GCF is moving in the right direction to deliver enhanced support and impact for developing countries.”
EIB may announce €500mn ($561mn) in funding for India's renewable energy sector [mint]
- The European Investment Bank is all set to fund 500 million euros for the Indian government and it is in the final stages of negotiations, reported CNBC-TV18. The EIB had committed to investing one billion euros in India's green hydrogen sector earlier in 2023. "EIB is working on important negotiations towards the first phase of its investments in renewable energy. We are going to invest not just in green hydrogen but in onshore windmills and the solar panels sector," -EU Investment Bank's Vice President Kris Peeters.
Eurazeo closes its second Smart City fund at €400mn ($445mn) [tech.eu]
- Eurazeo has announced the final close of its Smart City fund II, at €400 million. As the name implies, the Smart City fund is earmarked to invest in renewable energy, mobility, logistics, manufacturing and the built environment on a global scale. In total, the €400 million fund is backed by 5 sovereign wealth funds and development institutions, EIF, Bpifrance, PFR, F.R.C, and KVIC, alongside 18 corporations from Europe and Asia, including EDF, TotalEnergies, Stellantis, Hager Group, ZF, RATP, Mainova and SWK AG. Specifically targeting sustainable city technologies, Eurazeo has already made investments in 1Komma5°, Electra, Swapp, and Urban Chain via the new €400 million fund.
Bezos Earth Fund announces $400mn for greening in underserved urban U.S. communities [Cision]
- The Bezos Earth Fund announces a $400 million commitment to enhance green spaces in underserved urban U.S. communities with more parks, trees, and community gardens. The Greening America's Cities initiative launches with $50 million for urban greening efforts in five cities–Albuquerque, Atlanta, Chicago, Los Angeles, and Wilmington, Delaware–and will expand to new U.S. cities through 2030.
- The European Investment Bank (EIB) and Banco Santander (Brasil), the largest foreign bank in Brazil, have signed an agreement to foster the use of renewable energy in Brazil. Ricardo Mourinho Félix, Vice-President of the EIB, and Carlos Rey de Vicente, Banco Santander's Regional Head for South America, signed a €300 million loan in Brussels on 17 July 2023 during the EU-CELAC Summit of Heads of State and Government and the EU-LAC Business Forum. The project is part of the European Union's Global Gateway investment strategy supporting infrastructure and improving global and regional connectivity in the digital, climate, transport, health, energy and education sectors.
Ivanhoé Cambridge successfully issues its first sustainability bond, for C$300mn ($227.7mn) [Yahoo]
- As part of its sustainable finance program, Ivanhoé Cambridge announces the successful issuance of its first sustainability bond, rated AA (low) by DBRS1, in an amount of C$300 million. The issue carries a coupon rate of 4.994% and matures on June 2, 2028. Ivanhoé Cambridge became the first real estate investor to issue a senior unsecured sustainability bond2 in Canada. The bond was placed with 35 investors, the majority of whom considered the sustainable characteristics of this instrument to be a decisive factor in their investment decision.
- Prime Coalition and Azolla Ventures have rolled out a $239 million fund to invest in early-stage startups that are unlikely to lure traditional investors for their climate technology solutions. The new fund will look at three factors as part of its investment criteria — impact, lack of alternative funding options and commercial potential of the climate solution. The Cambridge, Massachusetts-based nonprofit Prime Coalition and investing firm Azolla will look for startups with the potential to reduce or remove at least half a gigaton of CO2-equivalent emissions by 2050.
- The Development Bank of North Macedonia (DBNM) and local commercial banks will receive EUR 100 million from EIB Global, the arm of the European Investment Bank for activities outside the European Union. The financing package will address the liquidity and investment needs of small and medium-sized enterprises (SMEs) and finance energy and green transition projects, the banks said. The investments will support low-carbon and climate-resilient growth in North Macedonia, in line with the European Union’s Economic and Investment Plan and the Green Agenda for the Western Balkans, according to the statement.
Norway’s FREYR Battery gets €100mn ($112mn) EU grant for Giga Arctic factory [Energy Storage News]
- Battery manufacturing startup FREYR Battery, which is targeting the battery storage sector with its product line, has received a €100 million (US$112.29 million) grant commitment from the European Union (EU). The funding has been awarded through the EU’s Innovation Fund, which supports clean energy projects with the scale and scope to contribute to the bloc’s decarbonisation.
BP investing $100mn in upgrades at Indiana wind farm [NWI Times]
- BP is investing $100 million to upgrade dozens of wind turbines at the Fowler Ridge Wind Farm in Benton County just north of Lafayette. It's the multinational energy company's largest onshore wind farm in the world. The multinational that runs the BP Whiting Refinery said the upgrades will significantly boost the wind turbine's electricity production without expanding the wind farm's geographic footprint.
CarbonCure raises over $100mn for concrete carbon removal [Sustainable Biz Canada]
- CarbonCure Technologies, a Halifax-based company specializing in trapping carbon in concrete, has raised over $100 million in a funding round led by Blue Earth Capital to support its growth. The company’s solution injects captured carbon dioxide into new concrete, which not only reduces carbon in the atmosphere but also reduces the amount of concrete needed per mix. Once injected, the carbon dioxide reacts with cement in water and mineralizes, strengthening the concrete and permanently storing the carbon dioxide. Removing carbon generates traceable carbon credits. Shopify, Stripe, Invert and Ripple are some of the companies that have purchased carbon credits from CarbonCure.
Nature-based Solutions
Deals and commitments above $1mn
Individual Deals & Market Watch
Arab-Africa Trade Bridges Program invests $1.5bn in food security initiative [FoodBev Media]
- The Arab-Africa Trade Bridges Program (AATB) – a programme aimed at promoting and increasing trade and investment between African and Arab member countries – has launched a $1.5 billion programme to address ongoing challenges amid the global food security crisis. AATB hopes that by attracting “investments, upgrading infrastructure, optimizing value chains and fostering cooperation, the programme aims at building resilient and sustainable food systems that ensure the availability, accessibility and affordability of nutritious food for all”.
€60mn ($67.5mn) project for farmers in Ireland to improve water quality announced [Irish Examiner]
- Support of €60m has been announced by the Government for the improvement of water quality at local, catchment and national levels. Through a WATER European Innovation Partnership (EIP) project, the Local Authority Waters Programme (LAWPRO) with Teagasc and Dairy Industry Ireland (DII) will work with farmers on an individual basis to improve water quality. The project will involve adopting innovative practices in nutrient management, the application of nature-based Natural Water Retention Measures (NWRM), and other measures at farm level following the principles of Integrated Catchment Management. Measures will be designed and targeted specifically to address local challenges.
$67mn in Alabama coastal conservation, water quality and recreational projects unveiled [Bama Buzz]
- Twenty-seven coastal conservation projects totaling over $67 million were unveiled by Governor Kay Ivey. The funding for the projects come from the Gulf of Mexico Energy Security Act of 2006 (GoMESA) which supports sewer infrastructure, water quality improvements, research, land acquisitions and recreational access improvements.
UK aquaculture companies land £16.3mn ($21mn) from Defra's Seafood Fund [The Fish Site]
- Companies farming shrimp, salmon, seaweed and mussels have all been awarded substantial grant assistance from the £100 million UK Seafood Fund to help meet the cost of new projects. Defra has awarded funds to Flo-Gro Systems Ltd, Mowi Scotland, Scottish Sea Farms, For the Love of the Sea, and Inverlussa Shellfish Co.
Clean label cereal company Seven Sundays raises $6mn [Food Business News]
- Clean label breakfast food company Seven Sundays raised $6 million in growth capital during its most recent round of funding. The company, which has been a Certified B Corporation since 2019, produces breakfast cereal, granola and muesli that are gluten-free and/or grain-free. The company plans on using this round of funding to support product development, employee well-being and sustainability — including a focus on regenerative agriculture and upcycled ingredients. This round of funding was led by individual private investors and follow-on investors including Sidekick Partners, Clover Vitality, Bobby Parrish, GRT SHT Ventures and existing angel investors, according to the company.
Up to £3mn ($3.9mn) up for grabs to help create and restore habitats [Tavistock Times Gazette]
- DEFRA has just released a new fund which aims to help reverse the decline of species in England. The newly-launched £25 million Species Survival Fund is now open for applications for grants from £250,000 up to £3 million for individuals and organizations in England with fully planned and costed projects ready for immediate start. The funding will support projects to tackle habitat loss, safeguard fragile ecosystems and create nature-rich landscapes full of wildlife-friendly habitats such as grasslands, woodlands and wetlands.
- Wide Open Agriculture, an Australian agriculture and regenerative food company which owns the brand Dirty Clean Food, has received an AUD$5 million grant from the Western Australian Government to scale up the production of a new oat milk enriched with a lupin-derived protein called Buntine. At the end of 2021, WOA raised $20 million to build a production facility near a farming area of high-quality oats in Western Australia. The grand will expedite its establishment. At the facility, WOA will produce the new oat milk and lupin protein formula in various formats and will continue producing its already launched oat milk products.
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