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Climate-Impact highlights / It's been a huge year
In just the last month of 2023 we've seen COP28 has kick-off in Dubai, the Australian government will underwrite large-scale renewable energy projects, and, climate-tech startups continue to raise big funding rounds in spite of a global downturn.
It’s been a huge year, and in my final note for 2023 I’m looking at the highlights that have pushed climate-impact investing forward!
Nature Took Centre Stage - Finally
The past decade has seen a huge focus on reducing carbon emissions, but it was only in 2023 that protecting nature and reducing biodiversity loss was embraced as a vital piece in the net zero puzzle; as well as being a major risk factor to be addressed.
Nature is finally getting the attention it deserves, and with the launch of the TNFD, businesses and investors now have a framework to assess the impacts and dependencies they have on nature.
For all the details, check out this podcast series covering the opportunities of investing in nature.
Here’s a selection of high-impact funds that are making nature and biodiversity more investable than ever.
Sentient Impact launched the Biodiverse Carbon Fund
Sentient Impact Group is an innovative impact investor, striving to offer avenues for capital allocation not offered anywhere else.
Their latest fund is the Biodiverse Carbon Fund (BCF), offering an opportunity to address the twin crises of biodiversity loss and climate change, by investing in regenerative land management projects,
I was excited to work with them this year, helping develop their theory-of-change and thought-leadership strategy.
Kakariki broadened their coverage to agriculture assets
Kakariki is raising a second fund, the Kakariki Land Generation Fund (LGF), focussed on identifying neglected agriculture land and developing carbon credit projects to drive revenue and regeneration.
Kilter Rural Launched a $500m Ag fund
Kilter Rural has already acquired three farm and water assets as it launches the Kilter Agricultural Fund.
Climate-Tech is Booming
One of Australia’s fastest growing startups is driving innovation in dirt! Now that’s progress.
Loam Bio Raises a Huge $105m Series B
It’s one of Australia’s fastest growing startups, Loam is set to transform CO2 removal with its microbial technology for cropping systems.
“Loam’s microbial technology enables greater volumes of carbon to be stored in soils for longer periods of time,” says Co-founder and CEO, Guy Hudson.
“Increasing the quantity and quality of carbon units farmers can produce per hectare, makes participating in carbon projects more economically valuable for farming enterprises.”
SunDrive Produces World’s Most Efficient Solar Panel
The solar startup out of South Sydney has received $11m from ARENA (after a $21m round in 2022). SunDrive is now focussed on commercialisation of its world-leading solar cells that use copper instead of silver.
Swarmfarm Raises $12m
The ag-tech startup building farming robots has raised its Series A, supported by Canadian investors Conexus VC, as well as local Tenacious Ventures.
HydGene Raises $6m from CEFC and Agronomics
HydGene has developed an alternative green hydrogen solution that turns biomass into hydrogen, in a process that is both renewable and carbon negative.
New Opportunities for Climate Investors
It’s no longer an outlier, climate-impact investing is attracting huge deals, to tackle a huge problem, and leverage huge opportunities.
Leapfrog’s and Temasek commit $750m to climate action in Africa and Asia
Founded by Bondi-local Andrew Kuper, Leapfrog continues to grow into a glow impact investment force, with a focus on funding innovative health and climate solutions for under-served ‘emerging consumers’ in sub-saharan Africa and fast-growing Asian countries.
SunCable Billionaires go Head-to-Head for Control
The audacious plan to send solar power from the NT to Singapore, via the world’s largest powerline, saw friction between its two major backers, Andrew Forrest and Mike Cannon-Brooks.
The final outcome saw MCB taking control of SunCable, with plans to continue with the $35 billion, world-first project.
“The green energy transition remains the greatest economic opportunity of our time.” says MCB “SunCable's AAPowerLink project has all the component parts to make the next great Australian infrastructure initiative possible.”
Climate-Risk Disclosure Standards are Formalised with the ISSB
The power and influence of the TCFD is often understated. The taskforce was established a decade ago, and while it was always voluntary, it quickly attracted a critical mass of corporate and investor attention. It evolved to become the world’s leading climate-risk reporting framework.
In 2023, with both governments and companies getting serious on 2030 Net Zero goals, the international accounting standards board (IASB) delivered its first set of standards focussed on sustainability risks, the ISSB.
At last, we have a global accounting standards, and excuses for climate denial are rapidly running out.
It also meant the TCFD got an exit, as it was subsumed into the new ISSB model.
Aus Government Goes All-In For A Clean Energy Future
The fresh policy ideas have been coming thick and fast from the Federal Government. Here’s some of the highlights:
The Australian government will underwrite investments in new renewable energy generation and storage projects. The Capacity Investment Scheme will offer investors more certainty, and deliver more renewable energy to Australia.
The Net Zero Economy Agency has been created, to shape and manage the huge economic shit that will be required to implement the clean energy transition, and position Australia to be a global leader.
And… as I write this, we’re receiving news that the Labor government’s Nature Repair Bill will have the support of the Greens. The system will support private investment in biodiversity renewal and conservation projects being established by landowners, but won’t allow for the trading of project outcomes as ‘biodiversity offsets’. The word ‘market’ was removed from the updated title of the bill.
The Greens will support the bill in exchange for new rules around the ‘water trigger’ that is part of coal seam gas project approvals.
Let's Make 2024 Even Bigger!
Have a safe and relaxing holiday, and let's get back into it next year with more deals, more innovation and more progress on the shift to a regenerative economy!
I work with investors and their portfolio companies to build trust, drive inflows and create positive impact.
Hit reply if you'd like to discuss how you can unlock the impact of your business, to turbocharge growth.
John Treadgold
The Business of Sustainability
Stopping climate change is the biggest investment opportunity of our lifetime, and its already driving radical change in how financial markets operate. Sign-up for the latest insights into sustainability, ESG and impact investing, and all the episodes of the Good Future podcast as they're released.
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