Climate Finance News - December 5
An ETF betting on Industrial Electrification; Football stadiums at-risk from Climate-related disasters; EU green bond issues and allocation; New Zealand to address agriculture methane emissions;
In this newsletter
An Exchange-Traded Fund betting on Industrial Electrification
Football stadiums at-risk from Climate-related disasters
News from Governments
Infrastructure & Development Finance
Startup Funding & Deals
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An ETF betting on Industrial Electrification
US-based Tema has launched the world’s first electrification exchange-traded fund (ETF). The fund, called VOLT, is an actively-managed fund that will invest in electricity value-chain companies that will benefit from rapid electrification in industries. Here’s Tema’s blog on their investment thesis for this fund.
Football stadiums at-risk from Climate-related disasters
UK-based climate-risk data analytics company Climate X has released a new study projecting $800 million in climate-related losses by 2050 for FIFA World Cup venues and major European football stadiums. The analysis evaluated 37 stadiums, including all 12 venues for the 2026 FIFA World Cup in the United States and the 25 largest football venues in Europe. The study identified Florida as a high-risk hotspot with three of the top six most exposed stadiums. Surface flooding and extreme heat emerged as the most significant threats and could cause combined annual losses of up to 2% of their current replacement value for some venues.
News from Governments
The European Commission has launched two new calls for proposals worth €3.4 billion to accelerate deployment of innovative decarbonisation technologies
€1 billion call for electric vehicle battery manufacturing
and a €2.4 billion general call for net-zero technologies.
Additionally, the Commission has initiated the second auction of the European Hydrogen Bank with €1.2 billion from EU funds plus over €700 million from three Member States, bringing the total investment package to €4.6 billion for advancing net-zero technologies, EV battery manufacturing, and renewable hydrogen production.
(November 19) The European Commission has raised €7 billion in EU Bonds through a dual-tranche transaction, including €3 billion in NextGenerationEU (NGEU) Green Bonds. The transaction consisted of a
€4 billion tap of EU Bond maturing in 2031
and a €3 billion tap of NextGenerationEU Green Bond maturing in 2043
The proceeds will help finance EU policy programmes, support to Ukraine, and green projects in Member States' Recovery and Resilience plans. The Commission has also published the NextGenerationEU Green Bonds Allocation and Impact Report 2024 detailing how proceeds from green bonds issuances are used and their impact.
New Zealand's government has announced a $995,000 co-investment in the Land for Life (LFL) pilot programme in Hawke's Bay to help farmers adapt to climate change and build resilience against adverse weather events. The programme, which is expanding from 12 to 100 farms with plans to reach 300 farms, aims to enhance agricultural productivity while generating carbon credits and improving environmental outcomes, including CO2 sequestration of 61,000 tonnes.
New Zealand's government has announced a NZD 137.2 million funding boost for upgrading Wellington's metro rail network substations. The project will deliver five additional substations to power new trains and enable 15-minute timetables, while improving service reliability and weather resilience.
New Zealand government has committed $400 million over four years to develop and implement on-farm emissions reduction technologies. This follows findings from an independent scientific panel reviewing the country's biogenic methane targets. The review suggests that
in a low-emissions scenario - if global climate policies meet targets aligned with 1.5°C goals then a 24% reduction (on 2017 levels) in biogenic methane by 2050 in New Zealand would meet the goal of no additional warming
medium-emissions scenario - 14-15% reduction in New Zealand’s biogenic methane levels over 2017 would meet the ‘no additional warming’ condition
high-emissions scenario - holding methane emissions at 2022 levels would be sufficient
The UK Department for Science, Innovation, and Technology has launched several Arctic science initiatives through its Tactical Fund for 2023-2025. The initiatives focus on monitoring ice coverage, permafrost impact, and environmental changes using artificial intelligence and satellite technology.
The state of Rajasthan, in India, has announced the 2024 Integrated Clean Energy Policy to promote renewables, biomass, waste-to-energy, green hydrogen and energy storage.
Infrastructure & Development Finance
(November 25) The European Investment Bank (EIB) has granted Spain's Nortegas Group financing of up to €80 million to finance the construction of biomethane plants and launch a digital operations center in Spain. The project aims to generate up to 3.5 TWh/year by 2030 and will produce renewable biomethane from agricultural waste for injection into the existing natural gas network. European Commission Press Release
Brazil's National Bank for Economic and Social Development (BNDES), Ministry of Environment and Climate Change (MMA), and Ministry of Racial Equality (MIR) have launched the 'Naturezas Quilombolas' initiative with R$33 million funding from the Amazon Fund. The initiative will support quilombola communities in the Legal Amazon region with their territorial and environmental management practices. The program includes two funding categories: 'Sementes' with R$3 million for up to 10 local projects, and 'RaÃzes' with R$30 million for up to 6 larger-scale network projects, to be implemented over five years.
Startup Funding and Deals
UK’s Rolls-Royce and Qatar have announced a climate technology partnership with £1 billion initial investment from Qatar. The partnership will create climate technology hubs across both countries to develop climate-friendly technologies, focusing on energy efficiency, sustainable fuels, and carbon emissions reduction.
European real estate investment manager MARK Capital Management has announced the final close of Crossbay II, its pan-European urban logistics fund, with €660m in equity commitments.
(November 22) Norway-based agtech startup Kilter has raised NOK 95 million (€9m) in Series A funding round co-led by Pymwymic and Nufarm, with participation from SBG Invest, Natural Ventures and ProAgInvest LLC. The company's autonomous robot AX-1 uses proprietary Single Drop Technology to reduce herbicide use by up to 95% through precise weed targeting. The technology has been developed specifically for high-value vegetable crops such as carrots, onions, and swedes. The company is already established in Norway, Sweden, and Germany. The funding will support expansion into new markets including Australia and New Zealand.
US-based distributed energy company ConnectDER has secured $35 million in Series D funding led by Decarbonization Partners. The company has unveiled its next-generation Meter Socket Adapter called 'IslandDER' designed to integrate solar, battery storage, and EV charging solutions, with over 25,000 adapters already in operation and approval for use in multiple states.
Further Reading
Recommendations for national transition planning: supporting the G20 and the Transition Finance Market Review, from Grantham Institute
The 2024 Africa Investment Forum Market Days are underway - video from day 1
Carbon Removal News - December 5
EU ETS allowances for buildings, road transport, small industry;
Tencent funds Carbon removal;
Deep geothermal to decarbonize mining;
Low-GWP refrigerants
Climate Finance Roundup - December 3
Climate risk of Residential Mortgage-Backed Securities;
AIIB funds China logistics project;
Germany funds AI & Data accelerator for Food;
New Zealand's new Infrastructure Financing Framework;