Climate Finance Roundup - January 21
AIIB issues AUD 500 million climate adaptation bond; UK publishes first TCFD climate disclosure; New Forests closes AUD 500 million Sustainable Forestry Fund; IFC USD 2 billion social bond
In this newsletter
Top 5
AIIB Issues AUD500 Million Climate Adaptation Bond
Australia NZ fund raises A$600M for sustainable forestry
Update from Russia’s Direct Investment Fund
UK Publishes First TCFD Climate Disclosure
ETH Zurich: Climate-Neutral Aviation Could Increase Airfares by 50 Percent
Deals & Funding - Praesidian Capital, IFC, SPRK Capital, Photon IP, EAAIF x CME Solar, EnviroGold,
News from Governments - Canada, South Africa, the EU
Publications
Guidelines on the management of Environmental, Social and Governance (ESG) Risk, European Banking Authority, January 2025 (PDF)
Climate risk in the Financial Statements (US GAAP) - Handbook from KPMG, December 2024 (PDF)
Top 5
AIIB Issues AUD500 Million Climate Adaptation Bond
(January 15)
The Asian Infrastructure Investment Bank (AIIB) issued a second Climate Adaptation Bond, raising AUD500 million to fund climate adaptation projects.
At least 20% of project financing will contribute to climate adaptation. Eligible projects include initiatives in Bangladesh and Uzbekistan improving water infrastructure.
Asian Infrastructure Investment Bank (AIIB)
Australia NZ fund raises A$600M for sustainable forestry
(January 15)
Australia and New Zealand-based New Forests closed its Australia New Zealand Landscapes and Forestry Fund (ANZLAFF), raising approximately A$600 million from institutional investors.
ANZLAFF provides exposure to integrated forest, land, carbon and agriculture markets in Australia and New Zealand targeting investments in core forestry plantations alongside processing and related infrastructure, with some targeted exposure to agriculture assets.
New investors include Evli, Kyushu Electric Power, and a German insurance company.
Russia's RDIF Reports on Energy and AI Investments
(January 13)
Russia's Russian Direct Investment Fund (RDIF) reported on various projects including investments in energy (small hydroelectric power plants in Karelia, domestic gas supply with Gazprom), and artificial intelligence. Since its inception, the RDIF has invested over 2.3 trillion rubles in 100 projects, attracting 36 billion euros of foreign capital and generating significant returns for the state. Investments in renewable energy, including small hydroelectric power plants are mentioned. The fund claims an ‘attraction ratio’ of 1:5 - for every ruble invested, its partners contribute 5. It is also investing in AI
As for artificial intelligence, we have attracted 150 billion rubles from our foreign partners specifically for artificial intelligence projects, and we are actively interacting with our leading universities and institutes. We invest not only in infrastructure such as data centres for artificial intelligence, but also in companies such as Motorika, which produces prostheses that use artificial intelligence. We also help our artificial intelligence companies enter the Middle East markets. For example, we helped a facial recognition company enter the Saudi Arabian market, and we are also bringing a leading telemedicine company to the markets of Asia and the Middle East.
UK's GAD Publishes First TCFD Climate Disclosure
(January 13)
The UK's Government Actuary's Department (GAD) published its inaugural climate-related financial disclosures aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. GAD's disclosure exceeds phase 1 requirements, integrating climate considerations into operations and involving staff in managing climate risks. The department is committed to limiting its contribution to climate change and regularly reviews risk mitigation strategies.
Study: Climate-Neutral Aviation Could Increase Airfares by 50 Percent
(January 16)
Researchers at ETH Zurich and the Paul Scherrer Institute found that airfares could rise by 50 percent if aviation is made climate-neutral using synthetic fuels. The study compared using sustainable kerosene with CO2 removal versus synthetic fuels. Synthetic fuels proved cheaper, increasing ticket prices by 45-60 percent compared to 55-75 percent with the kerosene approach. Production of synthetic fuels is expected to occur outside Europe due to renewable energy cost advantages. The EU and Switzerland are implementing regulations to increase the use of sustainable aviation fuels.
Deals & Funding
Praesidian Capital Sells Nuclear Testing Firm MPM to SGS
(January 21)
US-based Praesidian Capital announced the successful sale of its investment in MP Machinery and Testing (MPM), a nuclear testing services provider, to SGS. MPM specializes in testing for micro-reactors and small modular reactors (SMRs), addressing growing energy needs. Praesidian acquired MPM in 2021 and supported its growth in this emerging market.
IFC Issues Record $2 Billion Social Bond for Emerging Markets
(January 15)
The International Finance Corporation (IFC), a member of the World Bank Group, issued a $2 billion three-year social bond to support low-income communities in emerging markets. The bond will fund projects in areas such as health, education, and food security, and is the largest social bond ever issued by IFC.
Sprk Capital secures £20M to fund UK innovation in net zero and AI
(January 14)
UK-based Sprk Capital secured a £20 million funding facility from British Business Investments and raised £2.8 million in equity. This funding will support smaller businesses engaged in innovation, with a focus on accelerating UK-led innovation in areas such as net zero, AI, and sustainability. Sprk is the first lender focused on innovation lending to receive funding from British Business Investments.
EIB funds German grid modernization and heating expansion
(January 14)
Germany: The European Investment Bank (EIB) is providing €70 million to Stadtwerke Reutlingen for modernizing electricity grids and expanding district heating networks. This aims to improve integration of renewable energy sources and decarbonize heating systems.
Photon IP secures €4.75M for low-power optical chips
(January 13)
Netherlands-based PHOTON IP, a manufacturer of advanced low-power optical chips, raised €4.75 million in seed funding. The round was led by Innovation Industries, with participation from Faber, BOM, and PhotonDelta. This funding will accelerate the industrialization and commercialization of PHOTON IP’s technology, which efficiently combines silicon photonics with active III-V materials for optical communication networks and data centers.
EnviroGold raises $4.1M, appoints new director
(January 13)
Canadian EnviroGold Global Limited closed a non-brokered private placement, raising CAD $4,119,000. The funds will be used to complete a demonstration facility, advance customer relationships, and support operational expenses. John Brabazon was appointed to the Board of Directors.
Sidenor's Commitment to Research and Innovation in PLATEA
(January 13)
Spanish-based Sidenor participated in 70 PLATEA-funded projects (2023-2024) focused on decarbonization, clean energy, and circular economy, with a total investment of €235 million for the energy transition and climate change. Key projects include H-Acero (hydrogen-based steel), MODHEATECH (hybrid furnace technology), and GreenHeatEAF (renewable energy for EAF).
EarthCare.ai secures $350K to expand climate data platform
(January 13)
Macedonian startup EarthCare.ai, developing a global climate intelligence platform, secured $350K in pre-seed funding led by South Central Ventures and supported by Zephyr. The platform analyzes climate data to provide insights for businesses, mitigating climate crisis damages exceeding $300 billion annually. In 2023, it received $120,000 investment and joined the Techstars program.
South Central Ventures on LinkedIn
EAAIF invests USD 20 million in CME Solar for Vietnam’s clean energy
(January 06)
The Emerging Africa & Asia Infrastructure Fund (EAAIF), managed by Ninety One, invested USD 20 million in CME Solar in Vietnam. This supports the development of rooftop solar projects for companies, aiming to decarbonize Vietnam’s manufacturing sector and reduce reliance on coal-fired energy. The investment is expected to reach over 260MWp of projects and contributes to Vietnam’s goal of increasing renewable energy share to 39.2% by 2030 and achieving net-zero emissions by 2050.
News from Governments
Canada invests in Great Lakes climate change adaptation
(January 20)
The Canadian government invested $4.1 million in two projects to enhance climate change adaptation around the Great Lakes. Conservation Ontario and Zuzek Inc. will lead projects focused on climate risk assessments and adaptation plans, collaborating with stakeholders and Indigenous communities. This is part of the Climate-Resilient Coastal Communities (CRCC) Program.
Canada Funds Atlantic Climate Adaptation Projects
(January 17)
Canada invested over $8.8 million in nine climate change adaptation projects in Atlantic Canada through Natural Resources Canada’s Climate Change Adaptation Program (CCAP) and Climate-Resilient Coastal Communities (CRCC) Program. This is part of a total $39.5 million investment to reduce climate risks and build resilient communities, supporting the National Adaptation Strategy.
Southern Africa boosts environmental action via GEF collaboration
(January 20)
Southern African countries are collaborating to strengthen environmental action through enhancing the impact of Global Environment Facility (GEF) funded programmes. The GEF has dedicated $136.6 million for the 2022-2026 funding period to environmental efforts in 10 Southern African countries, with South Africa receiving the largest allocation of $49.1 million. The total GEF active environmental support includes 123 active projects with $553 million GEF commitments and more than $3 billion in leveraged co-financing.
Global JETPs Accelerate Clean Energy Transition
(January 20)
The International Partners Group (IPG), consisting of Canada, Denmark, France, Germany, Italy, Japan, Norway, The Netherlands, UK, and US, is collaborating with the Glasgow Financial Alliance for Net Zero (GFANZ) to mobilize private investment for Just Energy Transition Partnerships (JETPs). Several JETPs have been launched with countries like South Africa (nearly $2 billion spent), Indonesia ($1 billion approved, $5.5 billion in the pipeline), Viet Nam ($1 billion first tranche), and Senegal (finalizing investment plan). These partnerships aim to accelerate clean energy transitions, build renewables, and support inclusive growth.
Hino Motors Pays $236.5 Million for California Emission Violations
(January 15)
California-based Hino Motors, Ltd., a Toyota subsidiary, agreed to a $236.5 million settlement with the state's Attorney General and Air Resources Board. The settlement resolves claims of fraudulent low-emission vehicle subsidies and violations of state laws. Approximately $30.3 million will compensate CARB’s HVIP program, and $206 million will fund civil penalties and emission reduction programs. Hino will also provide a voluntary fix for affected vehicles.
EU provides EUR 15 million for Vietnam’s clean energy transition
(January 06)
The European Union released an additional EUR 15 million to Vietnam to support its clean energy transition under the EU-Vietnam Sustainable Energy Transition Programme (SETP). This brings the total EU disbursement under the programme to EUR 63 million. The funding will support Vietnam's progress on its clean energy transition and its Net Zero emissions target, and aims towards implementation of the Just Energy Transition Partnership (JETP).
Banorte's Sustainability Efforts and Climate Goals
(January 16)
Mexican Banorte has integrated sustainability into its strategy, resulting in increased investor inquiries about decarbonization and ESG metrics. They issued a sustainable bond earlier in 2024 and are actively involved in NZBA and PRB initiatives. The bank launched a green mortgage product and is focused on client engagement, particularly in carbon-intensive sectors, and biodiversity preservation in Mexico.
United Nations Environment | Finance Initiative
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