BlackRock's new Climate Fund, Luxembourg CSRD implementation, Australia Green Aluminium Production - Climate Finance Roundup
Bezos Centre funds Sustainable Protein Research; EMCAF reaches €450 Million; Funding for heat research, fisheries, organic farming
Top 5
Australia invests $2B in green aluminium production
Luxembourg CSRD and ESRS Implementation for Financial Entities
UN’s Net-Zero Alliance - request for information on investments CDR
Imperial's Bezos Centre to Advance Sustainable Protein Research
EMCAF Climate Fund Reaches €450 Million
BlackRock’s new Sustainability Fund: Brown to Green Materials
Top 5
Luxembourg CSRD and ESRS Implementation for Financial Entities
(January 24)
Luxembourg: The CSSF (Commission de Surveillance du Secteur Financier) has issued a communiqué regarding the implementation of the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS). The directive mandates sustainability reporting for certain entities, starting in 2025, with reports verified by an approved auditor (REA). The CSSF has also noted updated size thresholds for large companies based on the October 2024 grand ducal regulation.
Commission de Surveillance du Secteur Financier
UN’s Net-Zero Alliance - request for information on investments CDR
(January 24)
The UN-convened Net-Zero Asset Owner Alliance (88 institutional investors) published a request for information seeking to contribute to capacity building and knowledge sharing, and ultimately investment scaling in carbon dioxide removal (CDR). The Alliance is seeking responses from asset managers who have an existing vehicle that meets the requirements listed in the survey or asset managers who intend to invest significantly in the CDR sector by March 7, 2025.
United Nations Environment | Finance Initiative
Imperial's Bezos Centre to Advance Sustainable Protein Research
(January 24)
The Bezos Earth Fund provided $100 million to Imperial College London’s Bezos Centre for Sustainable Protein to advance research in alternative proteins. The Centre will focus on precision fermentation, cultivated meat, and other technologies to create sustainable food solutions. It has established collaborations with multiple UK and international partners.
EMCAF Climate Fund Reaches €450 Million
(January 23)
The German government's €20 million contribution to the Emerging Markets Climate Action Fund (EMCAF), bringing its total to €450 million. EMCAF, a joint initiative of the European Investment Bank (EIB) and Allianz Global Investors, aims to mobilize up to €7.5 billion for climate projects in emerging and developing countries. Investments focus on renewable energy, energy efficiency, sustainable transport, forestry, water, and wastewater.
Australia invests $2B in green aluminium production
(January 20)
The Australian government announced a $2 billion investment in the country’s aluminium industry. Australian aluminium smelters transitioning to renewable electricity before 2036 are eligible for Green Aluminium Production Credits per tonne of clean aluminium produced over a decade. This aims to support investment in renewable energy and strengthen the regional workforce, capitalizing on export opportunities and contributing to a decarbonised global economy.
Hamilton Locke | Australian Government
BlackRock’s new Sustainability Fund: Brown to Green Materials
(January 17)
BlackRock launched the BlackRock Brown To Green Materials Fund on 2025-01-17, aiming to maximize returns by investing in companies contributing to a low-carbon economy. The fund focuses on companies reducing their climate impact and has a sustainability objective to invest in companies that have the potential to reduce their contribution to climate change. At least 70% of assets must be assessed as "Transition Improvers" by BlackRock's 'SDR Improver Assessment' methodology.
BlackRock's 'SDR Improver Assessment' methodology requires that at least 70% of the assets held by the Fund have been assessed by the Investment Manager as "Transition Improvers" - companies which demonstrate they are making progress towards reducing their carbon emission profile through meeting at least one of the following:
(a) companies which have approved net-zero targets validated by the Science Based Target Initiative ("SBTi");
(b) companies which have committed to set 2050 or earlier net-zero targets for validation by the SBTi and have been identified by MSCI as on track to meet their respective targets;
(c) companies with published emission reduction targets who are on track to meet their decarbonisation targets, as identified by MSCI;
(d) companies identified as 'High Climate Impact' sectors, being those sectors which are key to the low-carbon transition, whose operations are aligned with the temperature goals set out in the Paris Agreement; and
(e) companies that do not have established climate targets and/or commitments but are demonstrating momentum towards decarbonising their operations
About the Fund | BlackRock - BGM Fund Objectives and Investment Policy
In this newsletter:
Funding announcements
EIB Funds Trifyl’s Waste Recycling Project in France
EIB supports Greece's green transition from lignite
EU Funding for Climate-Conscious Cultural Projects
Japanese Organic Farming Fund Supports New Farmers
Iceland contributes to WTO Fish Fund
NOAA awards $700,000 for extreme heat research
Research
EU Proposal for Climate Bonds to Fund Green Initiatives
McKinsey: B2B Energy Market Transformation
Funding announcements
EIB Funds Trifyl’s Waste Recycling Project in France
(January 24)
France-based Trifyl, a waste recycling association, received a €40 million loan from the European Investment Bank (EIB) to finance its Trifyl Horizon 2030 project. This enabled Trifyl to build three waste sorting and treatment units, increasing household waste reuse to almost 80%, cutting greenhouse gas emissions by 23%, and producing biogas covering 10% of Tarn’s consumption. Nearly 50 jobs were created.
EIB supports Greece's green transition from lignite
(January 24)
The European Investment Bank (EIB) will provide €2.75 million in technical assistance to five Greek regions (Western Macedonia, Megalopolis, Crete, North and South Aegean Islands) to help them transition away from lignite and towards renewable energy. This is part of Greece’s plan to end lignite use by 2026 and aligns with the EU’s Just Transition Mechanism and goal of climate neutrality by 2050.
EIB strengthens Albania partnership for green transition
(January 24)
Albania and the European Investment Bank (EIB) signed two agreements to enhance cooperation on green transition and sustainable development. The EIB will provide technical assistance to the Bank of Albania to incorporate climate risks into its regulatory framework and develop a green taxonomy. Additionally, a host country agreement will strengthen collaboration on projects such as railway modernization, water system improvements, and financing for small businesses. Since 2010, EIB Global has provided €420 million for projects in Albania.
EU Funding for Climate-Conscious Cultural Projects
(January 24)
The European Commission is offering funding through the Creative Europe Programme for large-scale European Cooperation Projects in the cultural and creative sectors. The call, CREA-CULT-2025-COOP-3, has a maximum grant amount of EUR 2,000,000 per project with a maximum funding rate of 60%. Projects must involve at least 10 entities from 10 different eligible countries and contribute to either transnational creation and circulation or innovation within the cultural and creative sectors. Areas of innovation may include fighting climate change.
Japanese Organic Farming Fund Supports New Farmers
(January 25)
Japan-based Bio Kameoka Co., Ltd. launched a social investment fund to support its Kameoka Organic Agricultural Park. The fund aims to address challenges in organic farming, such as high initial investment costs and difficulties in securing sales channels. The 6.2 million JPY fund (20,000 JPY per share) will provide support for new farmers, including land, machinery, guidance, and sales channels, enabling them to focus on cultivation and expanding organic farming.
Plus Social Investment | Japan
Iceland contributes to WTO Fish Fund
(January 24)
Iceland has contributed a total of CHF 700,000 to the WTO Fish Fund, supporting developing and least-developed countries in implementing the Agreement on Fisheries Subsidies. This builds on a previous CHF 500,000 contribution in September 2023, and supports sustainable fisheries and ocean health.
NOAA awards $700,000 for extreme heat research
(January 14)
The US-based NOAA has awarded $700,000 in federal funding for extreme heat planning and research. Duke's Heat Policy Innovation Hub will receive $500,000 to advance heat action through a two-year project, partnering with NIHHIS to map heat impacts, inform policies, and assess risks in communities.
Nicholas Institute for Energy, Environment & Sustainability
Research
EU Proposal for Climate Bonds to Fund Green Initiatives
(January 27)
The European Union proposes a joint climate debt financing scheme involving a uniform EU carbon pricing scheme, joint issuance of European climate bonds serviced by carbon pricing revenue, and a long-term climate policy plan. The estimated present discounted value of future revenues from ETS permit sales could reach €2.2 trillion to €11.5 trillion, potentially filling the EU climate financing gap. The bonds aim to enhance Europe’s capital markets, macroeconomic and financial stability, and monetary policy.
Centre for Economic Policy Research (CEPR)
McKinsey: B2B Energy Market Transformation
(January 27)
McKinsey analysis shows that the B2B energy supply and services value pools in Europe could grow by 6 percent CAGR per year by 2035, doubling from €4.1 billion today to €8.3 billion. Most of the growth is expected to come from the services market, including energy efficiency and on-site solutions. The European B2B energy efficiency value pool is expected to double from €1.9 billion in 2024 to €3.8 billion by 2035.
G20 commits to tackling financing for development
(January 26)
The South African Presidency G20 Development Working Group (DWG) meeting emphasized investing in global public goods, universal social protection, financing for development, and addressing illicit financial flows to achieve the Sustainable Development Goals (SDGs). The meeting highlighted the need for additional financing for sustainable development, particularly in Africa, and stronger regulatory frameworks to curb illicit financial flows.
South African Government News Agency
Iraq: CBI supports US investment in energy and infrastructure
(January 26)
The Central Bank of Iraq (CBI) met with a US delegation to discuss banking and economic relations. The meeting focused on US companies' interest in investing in Iraq's energy, infrastructure, and technology sectors. The CBI affirmed its support for economic growth and investment from US companies and banks, emphasizing the importance of investment diversification. A CBI visit to Washington D.C. is planned for April to meet with the US Chamber of Commerce and American companies.
Dutch Heat Alliance proposes plan to accelerate heating networks
(January 14)
A Warmte Alliantie in the Netherlands submitted a proposal to Minister Hermans to accelerate the rollout of heating networks. The alliance wants to work with the government to create the right conditions and improve access to funding for the energy transition. They are advocating for a simplified subsidy framework and a separate subsidy category for large heat pipelines.
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