Verdane’s Post

Thank you Dr.Martin for sharing ... may I share a counterpoint from the perspective of the construction of net zero luxury homes, illiquidity premia and risk management (as an actuary). When I built my green home in 2010-2012, the tradesmen trained on the job, wall structures and most of our "green-certified" materials were newly invented, and solar / geothermal tech was nascent - the green premium for design, planning and construction were too high to be a scalable construction business. Fast forward to 2024 that equation has changed. The "smart money" knows it too. In HK, many family offices hold shell-co's that build luxury green homes for their ownership. Vacation homes of billionaires in the Caribbean (e.g. St.Kitts/Nevis) are often green. The fundamentals of green homes, the construction know-how, green tech, materials and supply chains have matured. I believe the "green homes" industry is now where the EV car industry was circa 2000-2004. The "smart money" (including forward-thinking institutional investors) has begun to build their "value chain linkages" because similar to the transition risk of traditional car makers, the early movers in funding green construction will ensure that future entry is costly for late movers. Market sentiment shifts slowly and then suddenly, that's "transition risk". And in green homes, the end product isn't only "branding", the home is a much better physical space and less costly to maintain. "smart money" maybe shifting "quietly" into green because such investments now make higher risk-adjusted illiquidity premia than alternative corporate debt because most projects are likely a collaboration with governments or earn tax credits ... plus there is the potential for future carbon offset credit ... if today's holders of "patient capital" (e.g. life insurers and pension plans) are slow to allocate towards this green space, then they may face significant transition risk within the next decade or two ... FI regulators and actuaries should research this space more deeply to ensure climate scenario analysis drive asset allocations ... forcing those who don't to hold higher risk-based-capital maybe a dis-incentive that tips the scales ...

So much good news!! And it's only Wednesday. I caught Chris Stark's appointment - which I would think dovetails into something I missed! A new National Wealth Fund - over £7bn public money to attract billions more for green investments! And no mention of green or sustainability in the title. Brilliant. This is our wealth. It is what we have and what we value; our (sustainable) future. https://lnkd.in/dGp8rMeU #nationalwealthfund #sustainablefuture #climateaction Green Finance Institute Department for Energy Security and Net Zero #rewired Rewired Earth

Important analysis from Shift Action for Pension Wealth and Planet Health : “The CGF is a $15-billion decarbonization fund managed by PSP Investments and designed to leverage private capital for decarbonization and climate-aligned investment in Canada. While the CGF is an innovative public finance tool, its scope and strategic objectives have left the door open for the fund to finance dangerous distractions that subsidize fossil fuel companies, like carbon capture, utilization and storage and “low-carbon” hydrogen. The CGF's $50-million investment in Idealist Climate Impact Fund LP pales in comparison to the $1 billion the CGF has already committed to an oil and gas company’s risky, unnecessary and likely ineffective CCUS schemes. We remain concerned that much of the CGF's $15 billion outlay could largely become a slush fund for the oil and gas industry.”

The Canda Growth Fund (CGF) made its third investment this week, committing $50 million to the Idealist Climate Impact Fund LP, which is focused on companies developing and commercializing products, technologies and services that are accelerating the energy transition. The CGF is managed by PSP Investments, which is also the manager of Canada's federal Public Service Pension Plan. The Idealist Climate Impact Fund LP, managed by Montreal's Idealist Capital, is a smart investment that is aligned with the transition to a zero-carbon economy. The cleantech impact fund is focused on the decarbonization of power supply, electrification of transportation, decarbonization of industrial emitters, and promotion of a circular economy. Idealist aims to raise more than $400 million for the fund, and has so far invested in four cleantech companies, which are developing bi-directional EV charging, high-efficiency commercial HVAC units, low-power semi-conductors for wireless communications, and smart LED lighting for greenhouses. The CGF is a $15-billion decarbonization fund managed by PSP Investments and designed to leverage private capital for decarbonization and climate-aligned investment in Canada. While the CGF is an innovative public finance tool, its scope and strategic objectives have left the door open for the fund to finance dangerous distractions that subsidize fossil fuel companies, like carbon capture, utilization and storage and “low-carbon” hydrogen. The CGF's $50-million investment in Idealist Climate Impact Fund LP pales in comparison to the $1 billion the CGF has already committed to an oil and gas company’s risky, unnecessary and likely ineffective CCUS schemes. We remain concerned that much of the CGF's $15 billion outlay could largely become a slush fund for the oil and gas industry. #cdnpoli #sustainablefinance #climaterisk

UtilityAPI's Nathaniel "Nate" Kinsey talks to ImpactAlpha about the launch of Building Decarbonization-In-A-Box. As Nate explains, "The goal is to test, pilot and showcase a model structure that could be funded under the Greenhouse Gas Reduction Fund." Check out the story to learn more about why we're focused on the "missing middle" of commercial buildings at this critical juncture: https://hubs.lu/Q02tbRwM0

The #Energytransition to #NetZero through #GreenFinance will require #PrivateEquity, #PrivateCredit, #RealEstate, #Infrastructure and other #PrivateMarkets capital, in addition to #PublicPolicy (see #InflationReductionAct in the #US for #greensubsidies, and #EUGreenDeal, #EUETS and #CBAM for #carbontaxes) - this is now (hopefully) a widely accepted framework. Hence the #assetowner commitment from #Calpers to invest in unlisted #climateassets needs to be supported. The transtion away from #fossilfuels and towards #lowcarbon #portfolios and green #builtenvironment will require #patientcapital (from asset owners) invested in #privateassets. #esg #sustainability #sustainablefinance Emily Robinson Kate Martin Pico Analytics

Canada Growth Fund Fuels the Future with Major Investment in Svante's Carbon Capture Technology 𝗧𝗵𝗲 𝗳𝗼𝗹𝗹𝗼𝘄𝗶𝗻𝗴 𝗮𝗿𝗲 𝗞𝗲𝘆 𝗣𝗼𝗶𝗻𝘁𝘀: - The Canada Growth Fund announces a strategic investment in Svante, a leading company in carbon capture technology. - This investment aligns with Canada's commitment to achieving net-zero emissions by 2050. -Svante's cutting-edge technology captures carbon dioxide from industrial emissions, reducing the environmental impact. - The partnership highlights Canada's dedication to innovation and sustainable growth in the fight against climate change. https://lnkd.in/gTjbdXgf #CanadaGrowthFund #CarbonCapture #CCUS #Svante #NetZero2050 #CleanTech #ClimateAction #Sustainability #GreenInvestment #CarbonInnovation #EmissionsReduction #IndustrialEmissions #GreenTechnology #EnvironmentalImpact #CarbonManagement

Coral Reef Protection debt to nature fund - Impact investing and sustainable finance 🌊 Excited to share insights from a recent presentation on Impact Investment and Sustainable Finance, specifically focusing on "Coral Reef Protection Fund" in Mesoamerican Reef region. Our team has been dedicated to exploring innovative financial mechanisms that not only promise returns to investors but also safeguard our planet's precious marine ecosystems. Many thanks to amazing mentors at World Bank, Credit Suisse and Quantified Ventures 🔹 Innovative Approach: We've introduced a novel debt-to-nature fund structure that integrates Development Finance Institutions (DFIs) as guarantors for credit enhancement. This approach aims to mitigate investment risks while maximizing the conservation impact on coral reefs, which are vital for biodiversity and provide significant economic value to coastal communities worldwide especially in developing regions. 🔹 Collaboration at its Best: The journey to our final presentation involved invaluable discussions with esteemed professionals from the World Bank, Quantified Ventures, and Credit Suisse. Their insights and expertise in environmental finance have been instrumental in refining our fund structure to ensure it is both impactful and sustainable. 🔹 Key Outcomes and Learning: Focused on achieving tangible outcomes for coral reef protection, our fund structure is designed to support coral conservation efforts effectively. It was enlightening to delve deep into the economic and natural benefits of coral reefs, which reinforced our commitment to protecting these marine treasures. The collaborative process and the positive feedback received have been incredibly rewarding. I am truly grateful for this opportunity to contribute to the field of sustainable finance and impact investment. The successful presentation and the engaging discussions that followed are a testament to the collective effort and shared vision of making a difference. A big thank you to everyone involved in this project! Let's continue to push the boundaries of innovation for a sustainable future. 🌍💼🌱 #sustainablefinance #impactinvesting #CoralReefProtection #innovation #ConservationFinance #environmentalimpact #sustainability

Helios Investment Partners's CLEAR Fund Raises $200 Million for African Climate Investments 📊 🌍 The Helios Climate, Energy Access, and Resilience (CLEAR) Fund has raised approximately $200 million in its first close. Managed by Helios Investment Partners, the Fund aims to become the largest Africa-focused climate fund with a target size of $400 million. 💰 Initial catalytic backing came from PIDG company InfraCo Africa and the UK’s Foreign, Commonwealth and Development Office through the MOBILIST Global programme. Six additional climate investors joined in: British International Investment, European Investment Bank (EIB), The Emerging Markets Climate Action Fund, FMO - Dutch entrepreneurial development bank, and SIFEM - The Swiss Development Finance Institution. 💬 Gilles J. Vaes, CEO at InfraCo Africa (PIDG), stated: “The announcement marks a key milestone for CLEAR – a Fund conceived by PIDG company InfraCo Africa, through its investment arm InfraCo Africa Investment Ltd, and Helios Investment Partners, with support from ThirdWay Partners and FCDO’s MOBILIST. It is also a watershed moment for African growth businesses – and the associated infrastructure – seeking to address the climate crisis." 💬 Ross Ferguson, MOBILIST programme lead at FCDO, said: "FCDO, through MOBILIST, is proud to partner with Helios Investment Partners, one of Africa's foremost private equity managers with deep expertise in creating secondary market liquidity for investors in Africa, including through Helios Towers and Vivo Energy." 💬 Christopher Chijiutomi, Managing Director at BII, added: “We are delighted to once again partner with Helios Investment Partners to support the growth of African companies. As the UK’s development finance institution, this investment also reinforces BII’s commitment to supporting Africa’s green transition." 🌟 Helios will immediately begin investing in key areas: green energy solutions, climate-smart agriculture, green mobility, recycling, and digital climate enablers. Congratulations to Gilles J. Vaes, Ross Ferguson, Christopher Chijiutomi! #ClimateFinance #RenewableEnergy #Africa #Investment #SustainableDevelopment #GreenEnergy #ClimateAction #HeliosFund #MOBILIST #FCDO #BII #InfraCoAfrica

The Helios Climate, Energy Access, and Resilience (CLEAR) Fund has raised approximately $200 million in its first close for investment in African businesses focused on climate mitigation and adaptation. The fund, managed by Helios Investment Partners, has a target size of $400 million. Investors in the fund include InfraCo Africa, British International Investment, European Investment Bank (EIB), The Emerging Markets Climate Action Fund managed by Allianz Global Investors, FMO - Dutch entrepreneurial development bank and SIFEM - The Swiss Development Finance Institution advised by responsAbility Investments AG. Read the full article here: https://lnkd.in/dDTv8JgY * Stay ahead in Africa's private equity and venture capital sector with Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. Subscribe here: https://lnkd.in/duy5dWPs Christopher Chijiutomi Ross Ferguson Gilles J. Vaes