Climate Finance Roundup - December 13

Canada to fund bioenergy, SMRs, transmission; US EPA grants for Alaska; Brazil funds forest restoration; Convergent Power closes loan facility for energy storage;

Dec 13, 2024

US-based Convergent Energy and Power has closed a programmatic construction-to-term loan facility with Mitsubishi UFJ Financial Group (MUFG) to support its energy storage project pipeline. The initial facility anticipates $150M in funding with a framework for future financing rounds, supporting Convergent's existing pipeline of over $1bn in opportunities and its portfolio of over 800 MW / 1 GWh of energy storage and solar-plus-storage systems operating or under development.

News from Governments

New Zealand has announced key policy changes to enable tolling of roading infrastructure, including the ability to toll entire corridors and automatic inflation-based toll price increases, to attract investment into the sector. The government has specifically approved tolling for three new roads - Ōtaki to north of Levin, Takitimu North Link, and Penlink. Transport Minister Simeon Brown confirmed that legislation for these changes will be introduced next year.

The U.S. Environmental Protection Agency (EPA) has announced the selection of 105 applications for the Community Change Grants Program, totaling nearly $1.6 billion in awards to advance local environmental and climate justice projects. The program, funded through the Inflation Reduction Act, includes 32 Target Investment Area selections worth $600 million, with $150 million specifically allocated for Alaska Native communities, and will support projects ranging from pollution reduction to climate resilience and community capacity building across the nation.

Canada has announced a new emissions reduction target of 45-50% below 2005 levels by 2035, building on its existing 2030 target of 40-45% reduction.

(December 8) The Government of Canada has announced over $1 billion in investments for New Brunswick's clean electricity infrastructure, including up to $1 billion for Indigenous-led wind projects and $25 million for the Neweg Energy wind project. The comprehensive package includes funding for biomass conversion at Belledune Generating Station, small modular reactor development at Point Lepreau, and transmission line work, with NB Power estimating these investments could power up to 140,000 homes.

(December 5) It has also announced over $265 million in investments into SaskPower and Saskatchewan clean electricity projects, including $12 million for renewable power projects and $256.7 million from the Future Electricity Fund. The investments will support multiple Indigenous-led solar projects, grid modernization, battery storage systems, transmission upgrades, and energy efficiency programs, with key projects including the 1.4-megawatt Cosette Solar Project, 100-megawatt Prairie Coast Solar Project, and a 60 megawatt battery storage system.

Brazil's BNDES (National Bank for Economic and Social Development) has expanded financing to R$1.2 billion for the duplication of Eixão das Águas water infrastructure project in Ceará state, with service orders signed at the Presidential Palace in Brasília.

(December 10) BNDES and Conservation International Brazil (CI-Brasil) have launched a R$23 million ($4.7 million) ecological restoration program called 'Floresta para o Bem-Estar' targeting the Amazon region. The initiative aims to restore 1,500 hectares (approximately 3 million trees) across four states - Amazonas, Pará, Acre and Mato Grosso - through 6-10 projects, supporting indigenous communities, rural settlers, and small landowners with funding from the Amazon Fund. The program will focus on conservation units, indigenous lands, rural settlements, and small rural properties implementing agroforestry systems and assisted natural regeneration, with proposals being accepted until January 7, 2025.

Brazil's BNDES and Philip Morris Brasil have launched a Floresta Viva initiative allocating R$ 8.88 million for ecological restoration projects in the Atlantic Forest. The project covers 21 municipalities and 25 conservation units in southeastern Paraná, with BNDES and Philip Morris Brasil each contributing R$ 4.44 million, managed by the Brazilian Fund for Biodiversity (Funbio) to support restoration of at least 200 hectares through agroforestry systems and strengthening restoration production chains.

(November 17) The Brazil Government has launched the Brazil Restoration & Bioeconomy Finance Coalition (BRB Finance Coalition) to mobilize $10 billion by 2030 for forest conservation and bioeconomy development. The Coalition, announced by President Biden in Manaus, aims to conserve and restore 5 million hectares of Brazilian forests, sequester 1 gigaton of CO2 emissions, and invest $500 million in initiatives benefiting Indigenous peoples and local communities. Founding members include Agni, Banco do Brasil, BNDES, Conservation International, World Bank Group, and others.

Consolidated by Soumya Gupta (Twitter, LinkedIn).

Climate Finance