This paper “Climate Finance for Just Transitions: Building Low-Carbon Development Pathways in an Age of US-China Rivalry” by the Nicholas Institute for Energy, Environment & Sustainability investigates challenges throughout the international climate finance landscape and recommends pathways for how investments into low- and middle-income countries (LMICs) can more effectively drive low-carbon development.
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Macquarie Asset Management has agreed to sell a 15.5 per cent stake in the Lincs Offshore Wind Farm (Lincs) to Octopus Energy Generation funds. The asset manager held the stake through Macquarie European Infrastructure Fund V. No financial details have been disclosed. The 15.5 per cent stake is acquired by Octopus Renewables Infrastructure Trust and Sky, funds managed by Octopus Energy Generation.
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Acciona Energía, a subsidiary of Spanish infrastructure company Acciona, has agreed to purchase roughly 50 per cent of Singapore-based wind project developer the Blue Circle. In accordance with the conditions of the agreement, Acciona Energía will invest $34 million in the company and grow to be its largest shareholder.
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Amp Energy, a worldwide Energy Transition Platform and renewable energy provider, has finalised funding on its $155 million 61 MW/ 6.5 MWh solar plus storage portfolio in Massachusetts and New York. KeyBank led the construction and term debt, with US Bank investing the portfolio’s tax equity in the fourth deal between the three parties since 2017.
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A green taxonomy is a list that classifies all business activities based on their contribution to environmental aims and thresholds. Launched in January 2022, Indonesia’s Green Taxonomy 1.0 has been designed mainly as a guidance, rather than a mandatory instrument. This, however, may expand in the future, for example, through mandatory disclosures of taxonomy-relevant investment portfolios.
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Energie Baden-Württemberg (EnBW), a German energy company, sold its 49.9 per cent stake in a portfolio of 597 MW solar projects to Alte Leipziger Hallesche Insurance Group (ALH Group). The solar portfolio consists of 16 solar power parks spread over several German states, including Saxony, Baden-Württemberg, Mecklenburg-Western Pomerania, Baden-Württemberg, and Rhineland-Palatinate.
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On 1 June, the China Banking and Insurance Regulatory Commission (CBIRC) issued a new set of green guidelines. These lay out detailed expectations for banks and insurance companies to identify, monitor, prevent and control their environmental, social and governance (ESG) risks. Policymakers in China have been showing a growing interest in green finance. Traditionally, policies in the area have mainly focused on encouraging financial flows into supporting green, non-polluting and low-carbon businesses.
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Opdenergy, an independent renewable energy producer, has announced the signing of a financing agreement with BBVA and the European Investment Bank for the construction and commissioning of a solar PV portfolio in Spain totaling approximately 605 MW.
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In order to fully control the energy utility company EDF, the French government has stated its intention to buy out the company’s remaining stakes. The French finance ministry announced in a statement that it has made an offer to purchase the final 16 per cent stake in EDF for $9.85 billion in total or $12.26 for a share. Currently, 84 per cent of the business is owned by the government.
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The total cost of implementing NDCs in Africa is estimated at USD 2.8 trillion over 2020- 2030. This includes the estimation of loss and damage when provided by countries. Of this, national governments have committed to providing USD 264 billion (about 10%), with the remaining USD 2.5 trillion identified as climate finance needs. Across all African regions, reported needs greatly exceed country allocations from national government budgets.
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Apollo Global Management, a private equity firm based in the US, has completed a $175 million strategic investment in Summit Ridge Energy, a company that operates solar power plants across the country. Summit Ridge Energy intends to use the funds to broaden its geographic reach and scale its platform. Summit Ridge Energy has formed two joint ventures worth more than $1 billion since its inception in 2017.
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Over the past decade, the installation cost of geothermal power plants has increased, from USD2,620 per kW in 2010 to USD4,468 per kW in 2020. According to IRENA, geothermal is the second most expensive renewables type by installation cost, closely behind concentrated solar power’s 4,581 USD per kW in 2020.
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While Africa accounts for almost one‐fifth of the world’s population, it attracts less than 5% of global energy investment. This is spread unevenly across the continent. Ten countries accounted for 90% of private investment in energy and electricity infrastructure on the continent over the last ten years, South Africa alone accounting for nearly 40%. Total energy investment in Africa was already declining prior to the pandemic and fell even more quickly in 2020, by over 20%.
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This paper sets out key policy recommendations to accelerate this transition, tackling key challenges of the transition including methane leakage and gas blending. This paper also examines the role of hydrogen in this transition, how to grow the hydrogen sector to meet the needs of a net zero economy and prioritise its use to deliver rapid emissions reductions.
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Several high-profile investors have entered Vietnam’s C&I market. The French utility group EDF and its local partner, investment fund VinaCapital, have committed USD100 million over the next three years for a pipeline of 200 MWp of C&I rooftop solar power systems. South Korean conglomerate SK Group has pledged USD200 million and a 250 MWp installation target in the next few years, with local partner Nami Energy.
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Shell Overseas Investment B.V., a wholly owned subsidiary of Shell plc (Shell), has agreed to acquire a 100 per cent stake of Solenergi Power Private Limited and the Sprng Energy group of companies for $1.55 billion from Actis Solenergi Limited (Actis). The deal is expected to almost triple Shell’s renewable energy capacity in operation, as the company strives to become a net-zero emissions firm by the year 2050.
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TotalEnergies, a France-based oil and gas company, has acquired solar project developer Core Solar to its renewable energy portfolio in the US. Under the terms of the deal, Core Solar president and CEO and the employees will join TotalEnergies teams. The financial details of the deal have not been disclosed by either company.
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Advanced Ionics, a US-based provider of next-generation industrial electrolysers that can produce green hydrogen for less than $1 per kg, has announced the completion of a $4.2 million seed round led by Clean Energy Ventures and SWAN Impact Network.
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Increased public financing is required to de-risk private investment and support the development of new infrastructure. Reforms to improve transparency of climate-related data will help underpin efforts to incorporate climate risks into financial regulatory frameworks and develop transition risk modelling among financial institutions, helping to align capital allocation decisions.
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Quinbrook Infrastructure Partners and Primergy Solar have secured almost $2 billion in debt and tax equity financing for the Gemini solar plus 380 MW storage project in Nevada, US. Gemini was developed by Primergy, a wholly owned portfolio company of Quinbrook. The debt funding includes a construction/term loan, a tax equity bridge loan, and a letter of credit facility totaling $1.3 billion.
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