Climate Finance Roundup - January 9
EU ETS impacts on European investment; US DoE funds biofuels projects; Grant for battery recycling in the US; UK announces new Farming Roadmap
In this newsletter:
Impact of EU ETS on European Investments - Analysis from European Central Bank
UK Invests £52M in Business Carbon Reduction Projects
Aker Horizons plans green bond issue for renewable energy
Fortescue Funds Pilbara Sustainability Initiatives
SBM Offshore invests in Ocean-Power for low-carbon energy
UK Unveils Farming Roadmap for Sustainable Food Production
DOE and EPA Announce $6 Million for Advanced Biofuels Development
Blue Whale Materials Awarded $55 Million DOE Grant for Battery Recycling Expansion
Nordic Sustainable Bond Market Maturation
Impact of EU ETS on European Investments - Analysis from European Central Bank
(January 09)
The European Central Bank (ECB) analyzed the short-term effects of the EU Emissions Trading System (EU ETS) on European investment. The study found that while carbon price increases temporarily dampened domestic investment and shifted global FDI away from Europe, long-term benefits outweigh these short-term effects. High-carbon sectors, particularly construction, transportation, and manufacturing, were most affected. The analysis covered 2003-2019, excluding the pandemic.
UK Invests £52M in Business Carbon Reduction Projects
(January 09)
The UK government awarded nearly £52 million to 25 businesses to reduce their carbon emissions. Projects include heat pumps, carbon capture, and expanding recycling capacity. Notable recipients include Heinz (£2.5M grant, £5M investment), Hanson Cement (£5.6M grant), and Novelis (£14M grant). Total project value is £154 million.
Aker Horizons plans green bond issue for renewable energy
(January 09)
Norway-based Aker Horizons ASA, a developer of green industrial projects, has mandated several banks to arrange investor meetings and potentially issue a NOK-denominated senior unsecured green bond with a 4-year tenor. The proceeds will fund eligible activities under its green finance framework, including refinancing a NOK 2,500 million bond maturing in August 2025.
Fortescue Funds Pilbara Sustainability Initiatives
(January 09)
Australia-based Fortescue awarded A$123,000 in its inaugural Innovation Grants to seven Pilbara initiatives focused on environmental sustainability. These include a traditional bush medicine ‘pharmacy’, green power solutions, and a school upgrade project. The grants aim to support projects with positive sustainable impacts on Pilbara communities.
SBM Offshore invests in Ocean-Power for low-carbon energy
(December 18)
SBM Offshore has made a minority equity investment in Ocean-Power AS, a Norwegian company focused on "Blue Power Hub" technology for low-carbon electricity generation using gas turbines with carbon capture and storage. This aligns with SBM’s strategy to offer decarbonization solutions.
UK Unveils Farming Roadmap for Sustainable Food Production
(January 09)
The UK government has announced a new farming roadmap focusing on sustainable food production, business diversification, and nature restoration. £5 billion will be invested over two years in sustainable farming methods. The government will also monitor public sector food sourcing to increase purchases of British produce and introduce reforms to improve supply chain fairness and planning regulations for farm businesses. New precision breeding technologies will be introduced to improve crop resilience.
DOE and EPA Announce $6 Million for Advanced Biofuels Development
(January 08)
The U.S. Department of Energy and the Environmental Protection Agency announced $6 million in funding for three projects to advance biofuel development. The projects will improve biofuel production, scale up production systems, and support the U.S. bioeconomy. Funded through the Inflation Reduction Act, the projects are located in three states and will support the Sustainable Aviation Fuel Grand Challenge goals.
Blue Whale Materials Awarded $55 Million DOE Grant for Battery Recycling Expansion
(January 08)
US-based Blue Whale Materials (BWM) received a $55 million grant from the Department of Energy to expand its lithium-ion battery recycling facility in Bartlesville, Oklahoma. The expansion will create 150 permanent and 180 construction jobs and increase processing capacity to 50,000 tons annually, producing enough materials for over 100,000 electric vehicles. Approximately $3 million will fund workforce development and community outreach programs.
Nordic Sustainable Bond Market Maturation
(January 09)
The Nordic sustainable bond market demonstrated resilience from 2021 to 2023. Green bonds dominated (83% in H1 2023), with Sweden leading in issuance amount (EUR 83,166 million) and number of issuers (840). Corporates now dominate most Nordic markets except Norway (financial institutions). Market maturation shows increasing seasoned issuers.
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