September 2 - September 6, 2024
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In this Week’s Issue: $17.8 billion across 32 deals in Transition Finance ($16.5 billion), NbS ($849 million), Carbon Removal ($256 million), Hard-to-Abate industries ($142 million) and the Blue Economy ($101 million).
10 Essential Deals and Commitments:
Transition Finance
- USDA invests $7.3 billion in rural electric cooperatives to catalyze $29 billion in associated investment
- Hygreen invests $2.2 billion in Spanish green hydrogen development
- Infranity raises $1.65 billion for a debt fund with a climate focus
- Equinix issues $750 million in green bonds
- TotalEnergies Invests $444 million in a 1GW solar joint venture with Adani
Nature-based Solutions
- ImpactAg partners acquire AFA for $531 million as part of green ag push
- Tokyo Gas plans a $25 million investment in Nature-based carbon projects
- Queensland begins implementing a $132 million timberland investment
Hard-to-Abate Emissions
Carbon Removal
Blue Economy
News Highlights
Policy and Regulation
- The EU and Angola begin implementing a new sustainable investment agreement
- Taiwan prepares to launch a carbon credit exchange
- Every EU member state but Austria misses the deadline for implementing a new emissions ETS focused on buildings and road transport
Climate & NbS Finance
- Carbon trading marketplace Nori shuts down due to VCM weakness
- Indian hard-to-abate sectors are behind in reaching decarbonization targets
- ESMA publishes a new Trends, Risks, and Vulnerabilities Report
Emerging Science
- World Meteorological Organization releases a report on the state of climate in Africa for 2023
- The Klamath River is now fully undammed
- A new estimate suggests that meeting Chinese carbon emission targets could greatly reduce ambient nitrogen levels and slow primary vegetation growth
C4C News and Events
Learn more about what we're doing
Capital for Climate is excited to announce our participation in the following events at the 2024 New York Climate Week:
Wednesday, September 18, 2024:
In the run-up to New York Climate Week 2024, Capital for Climate will be a strategic partner for the 2024 New York edition of the Brazil Climate Summit. Registration for the summit is now closed.
In addition to supporting the summit’s overall programming, we will be hosting a special invitation-only roadshow side event showcasing 6 of Brazil’s most exciting Nature-based Solutions funds and project developers:
You can explore these companies and more on our NbS Platform.
Monday/Tuesday, September 23-24, 2024.
The Nature Hub, Convene 101 Park Avenue: Capital for Climate is proud to be a strategic partner for The Nature Hub at NYCW 2024, a convening of two days of discussions and networking focused on how to build a nature-positive economy. We will be present at The Nature Hub for both days and will be playing a key role in the following events:
Opening Plenary: Capital Mobilization for Nature: Towards a Nature Positive Economy, Monday, 8:30-9:39 am.
Roundtable on Latin-American and Caribbean NbS Investment Opportunities, Monday, 10:30 - 11:30 am.
Closing Plenary: Pathways to Belém: Unlocking Finance for Nature leading up to COP 30, Tuesday, 4-5:30 pm.
You must register here to participate in these and other programs at The Nature Hub.
Wednesday, September 25, 2024:
Closing Brazil’s Climate Finance Gap: Collaborating to mobilize investments in sustainable agriculture and nature-based solutions.
8:00 AM, Lever House, 390 Park Avenue
Thursday, September 26, 2024:
*NEW* Stories From the Leading Edge of Climate and Nature: Nature’s Vital Role in Implementing Net-Zero Targets. 10:00 AM, Bloomberg Offices, 721 Lexington Avenue
As we approach COP30 and reach the middle of the decade, reducing nature-based emissions and increasing natural carbon sinks will be a key part of the broader economic transition. Register to join:
- Mary Schapiro, Vice Chair and Head of Secretariat at GFANZ,
- Fabio Guido, ESG Strategy & Sustainability Manager at Itaú Unibanco,
- Elizabeth Aceituno, Finance Sector Engagement Lead for WWF-US,
- Joy Williams, Executive Director, Net-zero Transition Planning at GFANZ,
- & Tony Lent, Co-founder of Capital for Climate,
for a discussion of the role of nature-based solutions in meeting net zero targets, and the need for investor action to realize the climate transition.
Runway for Change: Fashion, Finance & Impact, hosted by Ambition Loop.
5:00 PM, Civic Hall, 124 E 14th Street (register here using the general admission option)
Please email us at contact@capitalforclimate.com if you have any questions about these events or our work in general.
Click here to subscribe! Or, keep scrolling for deal flow.
Nature-based Solutions ≥ $1M
Commitments and deals
Commitments
Vietnam projects $2.7 billion needed for low-emission rice project [vietnam net]
- Vietnam has estimated that $2.7 billion will be required to implement a World Bank-supported 1 million-hectare low-emission rice project. The World Bank has already agreed to cover $330 million for the initial phase of the project, which will focus on developing high-quality, low-emission rice value chains.
Queensland begins shaping $132 million timberland investment [wood central]
- Queensland will invest AUD200 million ($132 million) as part of a 30-year sustainable timber industry framework, to sustainably develop the country's agricultural resources. The investments will expand plantation resources, provide native forestry education and extension services, subsidize state and crown land forest harvesting across the state to meet supply levels, and develop accreditation services.
Tokyo Gas plans a $25 million investment in a Nature-based Carbon fund [environmental finance]
- Tokyo Gas has announced plans to invest $25 million in Climate Asset Managements Nature Based Carbon Fund. The fund, which has raised around $675 million with the new investment, generates carbon credits from afforestation and other nature-based projects. The credit purchase forms part of Tokyo Gas's net-zero roadmap.
African Natural Capital Alliance launches initiative with $10 million 3-year target [carbon pulse]
- The African National Capital Alliance has launched an initiative aiming to channel $10 million into nature-based solutions over 3 years, in collaboration with the Global Biodiversity Framework Fund, Oxford University, and the African Leadership University School of Wildlife Conservation. The initiative will aim to create a pipeline of projects designed to improve biodiversity and increase corporate disclosures of nature-related risks and opportunities.
Deals
ImpactAg acquires AFA for $531 million [agri investor]
- Impact Ag Partners will form a business combination with the Australian Food and Agriculture Company (AFA) through a special purpose acquisition company. The merged entity, the Agriculture and Natural Solutions Company will use AFA's operation as a vehicle for agricultural decarbonization and production.
Mozambique BIOFUND plans $135 million in biodiversity conservation investments [further africa]
- The Mozambique Biodiversity Conservation Fund (BIOFUND) is investing $135 million across 74 biodiversity conservation projects throughout the country. The projects are expected to involve more than 60,000 people, mostly in buffer zones of parks.
Sierra Leone and EU sign $99 million nature financing agreement [eeas]
- The Government of Sierra Leone and the EU have signed a financing agreement for the "Nature Nourishes" program collaboration. The program, which will be funded with €90 million ($99 million) provided by the EU, focuses on enhancing Sierra Leone's resilience against economic and climate shocks. The program funds will go to improve environmental protection, promote sustainable agriculture, and improve education and decentralization throughout the country, as well as facilitate public financial management reforms.
BBVA Colombia receives $50 million from CAF to promote biodiversity conservation [latinfinance]
- BBVA's Colombian subsidiary has received $50 million from CAF to fund biodiversity preservation initiatives throughout the country. BBVA Colombia will use $25 million of the funds to finance SME projects that have a positive impact on local ecosystems, with the remaining projects not yet disclosed.
- The California Infrastructure and Economic Development Bank (California IBank) has announced the first investment from its Climate Catalyst Revolving Loan Fund. The investment is with the California Wildfire Innovation Fund, a vehicle managed by Blue Forest, focused on climate solutions. The fund invests in forest restoration and wood utilization projects throughout California that address the wildfire crisis.
Soil Capital raises $17 million for Series B financing round [trill impact]
- Soil Capital has raised €15 million ($17 million) for a series B financing round. The startup provides carbon certification for farmers transitioning to regenerative agricultural practices. The funding will help drive Soil Capital's international expansion. The company currently works with 1,600 farmers covering 350,000 hectares.
Canada invests $9 million to strengthen UNESCO biosphere regions [the ogm]
- Canada will invest CAD 11.7 million ($8.62 million) to protect the country's UNESCO biosphere regions. The funds are part of Canada's wider conservation goal of preserving 30% of its territory by 2030.
Innovate UK awards $2.6 million for projects linking AI and nature investment [businessgreen]
- Innovate UK has awarded £2 million to programs utilizing AI to enhance environmental monitoring for nature-based projects. The projects include Ocean Ledger, Tierra Foods, Auquan, Caledonian Climate Partners, Zulu Ecosystems, and the City Science Corporation.
Transition Finance ≥ $100M
Commitments and deals
Commitments
Wells Fargo commits to $500 billion in sustainable financing by 2030 [esg news]
- In its August 2024 climate report Wells Fargo has announced plans to deploy $500 billion in sustainable financing by 2030 to support low-carbon economic development. The goal includes both financing green initiatives and reducing the carbon impact of the bank's physical infrastructure.
Deals
USDA provides $7.3 billion in financing for rural electric cooperatives [usda]
- The USDA will provide $7.3 billion in financing for rural electric cooperatives through the New ERA program. The funding will be split across 16 selections and aims to leverage additional private investments of $29 billion. 10 gigawatts of clean energy are expected to be constructed through the investments, to reduce 43.7 million tons of GHG pollution annually.
US DOE invests $2.2 billion in 13GW of grid capacity expansion [environment analyst]
- The US Department of Energy is investing $2.2 billion across 8 projects in 18 states, to increase the capacity and resilience of the electricity grid. The investment is expected to catalyze a further $10 billion in public and private investments. 13 GW of overall capacity is expected to be added to the grid nationwide, with $300 million dedicated to community workforce development, grants to community organizations, scholarships, and apprenticeships.
Hygreen Energy invests $2.2 billion in Spanish green hydrogen plant [reuters]
- Hygreen Energy has announced a $2.2 billion investment in an Andalusian green hydrogen plant. The investment is part of a larger strategy to build green hydrogen infrastructure in the country, including an agreement for green hydrogen infrastructure to be developed by Coxabengoa in the region.
TotalEnergies invests $444 million in 1 GW solar joint venture with Adani Green Energy [esg today]
- TotalEnergies has agreed to invest $444 million in a new joint venture with Adani Green Energy Limited. The venture will develop a solar portfolio exceeding 1 GW, with Adana contributing existing solar assets to build the portfolio, including 1,1150 MWac (1,575 MWp) solar portfolio in Gujarat, India.
EPA provides $300 million in climate funding for tribes [EPA] [waste dive]
- The EPA will provide $300 million in grants to Tribal communities to address climate change and air pollution. This funding will be split across 33 Tribal recipients and one municipality in the Northern Mariana Islands. The grants are estimated to reduce 7 million tons of CO2 equivalent by 2050. The investments are expected to be split into $45 million in transportation purchasing, $139 million for electric power, $55 million for industry, $5 million for industrial pollutants, $35 million for agriculture and natural and working lands, and $21 million for CPRG funds.
Last Energy raises $40 million for microreactor technology [energy central]
- Last Energy, a Washington, DC nuclear reactor startup, has raised $40 million in Series B funding for a 20 MWe microreactor. The company intends to use its technology to support data center decarbonization, among other power consumers.
Fund Formation
Infranity raises $1.75 billion for climate-focused debt fund [new private markets]
- Intrafinity has announced that it will invest at least half of its latest Enhanced Return Debt Fund in climate solutions. The fund, which has already received €1.58 billion ($1.75 billion) in commitments, will direct those funds to renewable energy, low-carbon energy transition projects, and essential digital and social infrastructure.
AllianzGI raises $682 million for impact strategy [new private markets]
- AllianzGI has raised €560 million ($682 million) in a first close for an impact credit strategy, which includes both a commingled fund and single-investor vehicles. The fund is marketed under Article 9 of the EU SFDR and has a target of €800 million ($883 million).
Aiga Capital closes debut climate infrastructure fund for $240 million [cnhi news]
- Aiga Capital Partners has closed its first fund with more than $240 million of commitments for investing in sustainable energy infrastructure. The commitments come from 7 limited partners across several categories of institutional investors. The investments will be used to accelerate the development and growth of infrastructure across North America. Initial investments have included a credit facility for Nexus Renewables, and Spearmint Energy.
HSBC raises $240 million for transition debt strategy [new private markets]
- HSBC Asset Management has raised $240 million for a $750 million target energy transition infrastructure debt strategy. The strategy will invest in senior and second-lien debt, targeting mid-market borrowers in Europe, North America, and the APAC region.
Mirova raises $233 million for environmental impact fund [esg today]
- Mirova has raised €211 million ($233 million) for the Mirova Environment Acceleration Capital fund (MEAC), which will be the firm's first impact private equity fund. The fund will make investments across five main themes: smart cities, natural resources, agri-agro technologies, circular economy, and clean energy. The fund has already made €80 million in investments in 10 companies and completed one exit.
SET Ventures closes $221 million fund [tech crunch]
- Dutch VC firm Sustainable Energy Technologies (SET) Ventures has closed its fourth fund for €200 million ($221 million). The EU SFDR Article 9-designated fund expects to write initial checks between €2 million ($2.21 million) and € 5 million ($5.52 million), with a focus on Series A and firms focused on digital technologies for supporting a carbon-free energy system.
- BNP has raised $166 million for a new fund targeting companies in the energy and ecological transition sectors. The new Solar Impulse Venture Fund was set up in partnership with Bertrand Picard's Solar Impulse Foundation and will invest in 15 to 20 'high growth potential' start-ups across the U.S. and Europe.
MCJ Collective closes second fund for $80.6 million [venture capital journal]
- MCJ Collective, the investment manager and producer for the My Climate Journey podcast, has closed its second fund at $80.6 million, short of its original $125 million target. The fund will back start-ups focused on energy and industry transition.
Green Bonds ≥ $100M
Commitments and deals
Completed Issuances
Equinix issues $750 million in green bonds [equinix]
- Equinix, a digital infrastructure company, has issued more than $750 million in green bonds across 2 offerings. The bonds will support Equinix's sustainability initiatives building energy-efficient infrastructure, implementing renewable energy sources, and reducing carbon emissions.
Carbon Removal ≥ $1M
Commitments and deals
Deals
Bank of America invests $205 million in carbon capture [benzinga]
- Bank of America has announced $205 million in investments to exchange tax credits from Harverstone Low Carbon Partners, an ethanol producer with carbon capture. The deal represents the first of its kind since the IRA enhanced tax credits for carbon capture.
Mantel raises $30 million for flue gas capture technology [reuters]
- Mantel Capture has raised $30 million to fund a demonstration of its technology, which uses molten salts to capture CO2 at refineries, factories, and other industrial sites. The seed round will allow the company to build a demonstration project at a paper mill that will be capable of capturing 1,800 metric tons of emissions a year.
Carbyon raises $16.9 million to scale DAC [carbon herald]
- Carbyon, a direct air capture (DAC) developer, has raised $16.9 million for a Series A funding round. The funding will go to prepare the company's high-speed air capture technology for a commercial pilot and to increase production to 50,000 machines a year by 2031.
Oxylus Energy secures $4.5 million for CO2-based e-fuel technology [carbon herald]
- Oxylus Energy has secured $4.5 million in investments for its e-fuel technology development. The company utilizes captured carbon to produce liquid e-fuel from green methanol.
Hard to Abate Sectors ≥ $1M
Commitments and deals
Deals
DOE invests $62 million in clean hydrogen [solar quarter]
- The US DOE has invested $62 million in 20 projects across 15 states focused on cutting-edge clean hydrogen technologies. The projects are focused on the development of hydrogen fueling infrastructure, hydrogen-powered port equipment, and improvements in the efficiency and equity of hydrogen technology deployment. The funding will be distributed across 5 main topic areas:
- Hydrogen Fueling for Medium- and Heavy-Duty Vehicles,
- Hydrogen Refueling Stations of the Future,
- Hydrogen Fuel Cell-Powered Port Equipment: Permitting and Safety for Hydrogen Deployment,
- Equitable Hydrogen Technology Community Engagement.
EU invests $60 million in Namibian green hydrogen [h2]
- The European Commission has announced €53.9 million ($59.7 million) in investment in Namibia's green development. This includes €40 million ($44 million) to support Namibian and South African green hydrogen investment funds, €2.7 million ($3 million) to support Namibia's renewable energy generation capacity, and €1.2 million ($1.3 million) to fundan effective regulatory and support mechanism for the country’s hydrogen sector.
Costa Rica invests $28 million in green hydrogen [tico times]
- Costa Rica has announced a €25 million ($27.62) investment in green hydrogen, called the "Green Hydrogen for a Decarbonized Economy" initiative. The project will provide financial and technical assistance to green hydrogen producers to grow hydrogen hubs throughout the country.
Signol raises $3.3 million for shipping decarbonization [business cloud]
- Signol, a sustainability startup that uses behavioral science to reduce emissions in shipping and aviation, has raised £2.5 million ($3.3 million) from industry-focused investors. The company's technologies are designed to help improve human decision-making to reduce shipping CO2 emissions.
Blue Economy ≥ $1M
Commitments and deals
Deals
U.S. invests $101.5 million in ocean observation [savannah business journal]
- The Biden Administration has announced $101.5 million in funding across 12 awards to expand and modernize the U.S Integrated Ocean Observing System. The 12 awards are spread throughout ocean observing systems across the country, and support data needs ranging from algal bloom monitoring to ice thickness measurement.
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
EU-Angola Sustainable Investment Facilitation Agreement enters into force [europa]
- The EU-Angola Sustainable Investment Facilitation Agreement has come into force. The initiative, which is the first-ever EU agreement on investment facilitation, provides a framework for investment in Angola that increases transparency and regulates the treatment of environmental and climate commitments and labor rights.
Taiwan to launch carbon credit exchange on October 2nd, 2024 [carbon credits]
- Taiwan is finalizing the last steps for its domestic carbon credit exchange platform, the Taiwan Carbon Solution Exchange (TCX). The TCX is expected to launch on October 2, 2024, based on regulations enacted on August 15th, 2024. The exchange will enable regulation that requires new large-scale factories and high-rise construction projects to offset their emissions. Credits will be available on the TCX online platform for purchase.
EU member states miss ETS deadline [carbon market watch]
- Only one European Union member state has complied with the bloc's request to develop an emission trading system for road transport and buildings, leading to enforcement action from the European Commission. The delay, which occurred in every EU member but Austria, raises questions about the eventual implementation of the regulation, which mandates countries to set carbon prices for road transport.
Finance Research and Updates
- The Finance Sector Deforestation Action Initiative (FSDA) and the IIGCC have published a set of investor expectations for commercial and investment banks for eliminating commodity-driven deforestation, conversion, and associated human rights abuses. The new document includes 5 key investor expectations for banks:
- Risk assessment,
- Commitment and governance,
- Expectations for clients,
- Monitoring and compliance,
- Disclosure.
Nori shuts down [carbon herald]
- Nori, a carbon trading marketplace with a notable impact in nature-based carbon and carbon farming, has announced that it will close. The company cited the current challenges in the VCM and a tough funding environment as the main reasons for its closure.
Revenues for Nature plans biodiversity COP16 launch [carbon pulse]
- The Revenues for Nature project, funded by the Gordon and Betty Moore Foundation, will launch at the COP16 biodiversity summit. The project, which will be led by the UK's Green Finance Institute and UNEP FI, aims to support the mobilization of $200 billion annually for biodiversity conservation by 2030.
ESMA publishes Trends, Risk and Vulnerabilities report [esg today]
- The European Securities and Markets Authority has published its semi-annual Trends, Risks, and Vulnerabilities report. The report covers what the regulator feels is needed to achieve EU Green Deal objectives, and notes recent issues in the ESG market, including a leveling off in the first half of 2024.
- Tech Cabal has found that, while VC funding for startups in Africa has been in general decline, the proportion going to climate-related firms has been growing, with the sector receiving almost half of the $325 million raised total in H1 or 2024. Funding for the food production and disaster management sector rose as well, from $340 million in 2019 to $1.1 billion in 2023.
Indian hard-to-abate sectors falling short of targets [eco-business]
- Data collected by Climate Risk Horizons suggests that Indian heavy industry is well behind its targets in decarbonization. Fertilizer was the worst performing, sourcing less than .5% of the sector's energy needs from renewable sources. Cement, despite being the best performing, only sources 2.5% of its energy from renewables.
Cercarbono approves voluntary biodiversity credit methodology [mongabay]
- Cercarbono, a Colombian certifier of carbon projects, has approved a voluntary biodiversity credit methodology. The methodology, developed by Savimbo, in collaboration with Colombian Amazonian Indigenous people and local communities, is the first of its kind. The units traded would represent units of habitat preserved using the buyer's money.
Emerging Science
The World Meteorological Organization releases report on the state of climate in Africa for 2023.
- The World Meteorological Organization has published its State of the Climate in Africa 2023, a report on climate trends across Africa. The study found that African countries are at risk of losing 2-5% of GDP due to climate change and that temperature increases across Africa were slightly above the global average, among other findings.
Climate-smart rice farming found to boost yields across 6 countries [dev discourse]
- Climate-smart agricultural practices, developed by the International Atomic Energy Agency and the UN FAO, have been found to be successful in improving rice cultivation and lowering emissions across several countries. These practices were found to increase yields from 1 to 2.5 tons per hectare, with a reduction of ammonia emissions by 36% in some countries.
Klamath River fully undammed [bbc]
- The Klamath River has been fully undammed for the first time in generations. The final dam was removed in August of 2024, reopening the final 400 miles of river, in the largest dam removal project in US history. The dam is expected to improve salmon production and benefit local communities, especially the Native Klamath and Yurok tribes. The removal cost an estimated $450 million in total.
New paper examines urban low-carbon governance in China [frontiers]
- A new paper in Frontiers examines low-carbon governance's effects on ecological efficiency and development in prefectural-level cities in China. The paper examined 254 cities between 2007 and 2020 and found that LCCP was overall effective in improving urban ecological efficiency.
Study examines effects of Karst Landscape on tree cover restoration [nature]
- A Nature-published study on the South China Karst, the largest karst region in the world, quantifies the sustainability and drivers of tree cover restoration in the region. The study suggested that the karst area had a higher level of social-ecological heterogeneity and that rural population reduction was a potential driver of reforestation.
A new paper examines the effect of soil fungi on restoration in karst landscape [frontiers in]
- A new study in Frontiers examines the effect of soil fungi in providing nutrients and resources for restoration in the South China Karst, promoted by the Chinese Grain for Green Project. The data indicated that returning crops to plantation and grassland had no significant effect on Ascomycota soil fungi, but did on Basidiomycota fungi.
- A new study in Frontiers examines the role of seedling treatment, soil application, and foliar application of a methane-derived microbial biostimulant in improving grain yield and reducing GHG emissions from rice fields. The agent was tested under 100% fertilizer conditions and also tested under 75% nitrogen (N) levels. The study found an enhancement of grain yield by 39% with a 31%-60% reduction in CH4 emission and 34% - 50% reduction in N2) emissions. A 34% increase in yield was found in the 75% level test.
Reliefweb publishes report on NbS for disaster risk management in FCV countries [reliefweb]
- Reliefweb has published a new report on the usage of NbS for disaster risk management in conflict- and violence-affected countries. The report finds that of the top 20 countries most vulnerable to climate change, 14 are considered to be fragile and conflict-affected, and that NbS interventions could yield co-benefits in fostering community resilience and alleviating fragile country conditions.
- A new paper in Nature examines the reduction of flows of nitrogen into Chinese ecosystems due to nitrogen emission reductions related to China's carbon neutrality goal. The study suggests that if goals are met, atmospheric nitrogen deposition in China’s terrestrial land will decrease by 44–57%, which could lead to a shrinkage in terrestrial net ecosystem production by 11–20% depending on models and emission scenarios.
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