1 big thing: Circular plastics grow despite challenges

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2. The BFD: Dialing up carbon removal 

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3. 👀 What we're watching: C-SPAN

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4. Temperature check

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5. Hot deals

6. It's personnel

❓ Trivia Tuesday: Where was the first COP climate summit held?

Last week's answer: GM is recognized as building the first DC charging station for EVs in 1914, which it called the Electrant.

🐝 Katie is learning all about Pokemon characters, like Beedrill, which is literally a bee with drills

🧹 Alan used the Shop Vac this morning to clean up an entire box of Cinnamon Toast Crunch that went tumbling down the basement stairs. 

Thank you to Michael Flaherty and Chris Speckhard for today's edits.

And thank you for reading Climate Deals! Please share with your friends, family and committed recyclers.

Climate Deals

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💼 New hires

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🗳️ Elections and appointments

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🛫 Departures

📰 In the news

Welcome to the first weekend of December. Axios Pro Deals research associate Natalie Breymeyer here with your monthly recap of who's working where now.

Did you or a friend recently change jobs? Tell us! Get wind of layoffs somewhere? Tell us! How do you tell us? Reply to this email.

You can read below to find new hires, elections and appointments, promotions and departures.

📥 Your opinion matters to us. Please share your thoughts by replying to this email!

There you have it. Make sure to continue sending us your personnel-related news throughout the month.

🌞 Natalie was able to take a long weekend in November to visit the San Juan Islands with friends where she enjoyed unseasonably sunny weather and lots of good food. 

🙏 Special thanks to Chris Speckhard for the thorough edits.

1 big thing: Renewable diesel boom

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2. The BFD: Vitamin C for X-energy

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3. Hybrids are having a moment

4. Temperature check 

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7. Photo of the day: A green ammonia-less journey

The Fortescue Green Pioneer, a ship that can run on green ammonia and diesel, sailed from Singapore to Dubai. 

🚀 Deals Tracker content links are live! The 53,000+ unique deals (and counting) available in Axios Pro: Deals Tracker now link to the original coverage in Pro Deals and Pro Rata.

Try it now to enhance your deals research with context on why they matter.

Have questions or feedback? Submit them here, or email Axios Pro Senior Editor George Moriarty at george.moriarty@axios.com.

🌥️ Katie is counting the days to the winter solstice at the end of the month. Need moar sunlight!

🐕 Stella the Irish setter protected Alan and the toddler from a neighborhood coyote last night. Sure, the coyote was already trotting away, but Stella really put some energy into her bark.

And thank you for reading Climate Deals! Please share with your friends, family and soybean fans.

1 big thing: Microsoft's big climate tech Q3

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2. The BFD: UAE ponies up 

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3. Toyota leads battery round

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🌴 Axios BFD is coming to Miami on Feb. 13, 2024. Request your invite.

👀 What we're watching: COP28 continues this week with big pledges, oily projects and John Kerry coming out against all new coal. 

🏠 Katie moved this weekend and is very excited about having more space!

🥴 Profiles in perseverance: Alan had one of those rare, epic-big nights with friends Saturday night — entirely forgetting that he was on-point with the 2-year-old Sunday morning. Relatedly: no more whiskey sours with egg white. 

And thank you for reading Climate Deals! Please share with your friends, family and Microsoft users.

1. $400M for industrial decarb

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2. Ardian acquires Verne Global for $575M

3. Fixing EV chargers, one round at a time

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4. Breaking into project finance

5. Solar company is first to tap domestic bonus

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6. A $30B climate fund

7. One Fun Thing

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🥳 Happy Friday, climate readers. Research associate Natalie Breymeyer here with your weekly digest.

🌴 Axios BFD is coming to Miami, on Feb. 13, 2024. Request your invite.

Editor Michael Flaherty here interrupting Natalie's news flow to allow you to rock out to the Miami Vice theme song and show intro that some of us stayed up late on Friday nights to watch. Reminder this is 1984 people. OK, back to Natalie's digest. 

🩰 Natalie is going to Seattle this weekend to see the Pacific Northwest Ballet perform the "Nutcracker." 

🙏 Thank you to Michael Flaherty and Chris Speckhard for today's edits.

Thank you for reading us this week! Please ask your friends and colleagues to sign up.

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Battery equipment startup AM Batteries has raised a $30 million Series B  round to grow its team and continue to build out its pilot production line in Massachusetts.

Why it matters: Equipment makers like AM Batteries can play a key role selling into the battery manufacturing market that the Biden administration is trying to bring back to the U.S., an effort fueled by funds from the Inflation Reduction Act.

Details: Toyota's venture arm led the round. Other investors included Porsche, Asahi Kasei, and RA Capital - Planetary Health, among others, as well as existing investors. 

Zoom in: CEO Lie Shi tells Axios the company will use the funds to double its team from around 25 people today over the next 6 to 9 months.

He adds that the round will give the company enough of a war chest for a runway of two to three years.

How it works: Most battery makers assemble electrodes using a wet process, involving a toxic solvent and a slurry to stick the anode or cathode to the current collector. 

AM Batteries uses a dry process, which the company says is 40% more energy efficient, takes 20% of the space of the wet process and is more environmentally friendly.

What we're watching: While U.S. battery manufacturing is growing, thanks to the IRA injection, it has also hit some speed bumps partly due to high interest rates boosting costs.

For example, battery materials recycling company Li-Cycle paused construction of its planned plant in Rochester, N.Y., due to high construction costs. 

AM Batteries will also need to move from the pilot stage of manufacturing into larger-scale production of its battery-making equipment. 

Editor's note: This story was updated to clarify the seventh paragraph. 

Exclusive: AM Batteries raises $30M led by Toyota Ventures

AM Batteries' Series B round was led by Toyota Ventures

Batteries

Battery equipment startup AM Batteries has raised a $30 million Series B round to grow its team and continue to build out its pilot production line in Massachusetts.Why it matters: Equipment makers like AM Batteries can play a key role selling into the battery manufacturing market that the Biden administration is trying to bring back to the U.S., an effort fueled by funds from the Inflation Reduction Act.Details: Toyota&#x27;s venture arm led the round. Other investors included Porsche, Asahi Kasei, and RA Capital - Planetary Health, among others, as well as existing investors. Zoom in: CEO Lie Shi tells Axios the company will use the funds to double its team from around 25 people today over the next 6 to 9 months.<ul><li>He adds that the round will give the company enough of a war chest for a runway of two to three years.</li></ul>How it works: Most battery makers assemble electrodes using a wet process, involving a toxic solvent and a slurry to stick the anode or cathode to the current collector. <ul><li>AM Batteries uses a dry process, which the company says is 40% more energy efficient, takes 20% of the space of the wet process and is more environmentally friendly.</li></ul>What we&#x27;re watching: While U.S. battery manufacturing is growing, thanks to the IRA injection, it has also hit some speed bumps partly due to high interest rates boosting costs.<ul><li>For example, battery materials recycling company Li-Cycle <a class="gtmContentClick" data-vars-link-text="paused construction" data-vars-click-url="https://www.axios.com/pro/climate-deals/2023/10/23/li-cycle-licycle-rochester-battery-recycling-plant" data-vars-content-id="0f5be048-e929-4af1-838f-b8c0abf7a917" data-vars-headline="Exclusive: AM Batteries raises $30M led by Toyota Ventures" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/climate-deals/2023/10/23/li-cycle-licycle-rochester-battery-recycling-plant" target="_self">paused construction</a> of its planned plant in Rochester, N.Y., due to high construction costs. </li><li>AM Batteries will also need to move from the pilot stage of manufacturing into larger-scale production of its battery-making equipment. </li></ul>Editor&#x27;s note: This story was updated to clarify the seventh paragraph.

In Q3, Microsoft's climate tech fund became one the most active investors in the space, jumping into the No. 3 slot for the first time.

Why it matters: Microsoft's $1 billion Climate Innovation Fund is providing much-needed funding for mature companies.

Catch up quick: The fund made its first investment in the summer of 2020. It has deployed about $700 million since.

The fund can invest across stages from early to growth to even project equity. It recently provided the funds for Climeworks' direct air capture and storage plant, Orca.   

Axios chatted with Brandon Middaugh, Senior Director, Climate Innovation Fund at Microsoft.

This interview has been edited for lengthy and clarity.

On the big third quarter: "We've become more focused on the target technologies that we view as our 'go gets,' and have a prepared thesis to tackle opportunities as they arise in those sectors.

The priority sectors for us on the carbon front are carbon-free electricity, advanced materials, fuels and carbon removal.

What sets this quarter apart is the emphasis on scalability. So both of the solutions you mentioned, Redwood and Boston Metal, are both later-stage investments. They're productizing their solution and really taking it to scale, and that's been a lot of our focus lately."

On sustainable aviation fuel: "Business travel represents a relatively modest part of Microsoft's own emissions footprint. It's only about 1% of our Scope 3 or less than 1% of our overall emissions footprint. 

That said, we've recognized that it's really one of the deep decarbonization strategies that requires capital participation to kickstart the market. In the sustainable fuel space, we are both a buyer and an investor.

Sustainable aviation fuel is one of the most difficult markets because of the relatively high cost relative to conventional fuels."

On playing an active role in climate tech startups: "We view this as part of creating the market. If the solutions were already there, we wouldn't see the need to do this. 

But when we made our sustainability commitments in 2020, we recognized that to get there, we were dependent on the presence of new technologies and new solutions in the market that aren't there today. 

It was that recognition that we need to have a role in building those markets for them to be there to buy from, that was what drove the thesis, ultimately."

On 2024: "I think the overall theme going into 2024 is: pull all the levers. 

We're trying to do more with our existing portfolio companies on policy advocacy." 

On new sectors: "Agriculture and land-based strategies. I think that there's more we can do in that space. And that's the new sector that we're looking at right now."

Behind Microsoft's very big climate tech quarter

The fund is looking for investments in agriculture and land

Microsoft

In Q3, Microsoft&#x27;s climate tech fund became one the most active investors in the space, jumping into the No. 3 slot for the first time.Why it matters: Microsoft&#x27;s $1 billion Climate Innovation Fund is providing much-needed funding for mature companies.Catch up quick: The fund made its first investment in the summer of 2020. It has deployed about $700 million since.<ul><li>The fund can invest across stages from early to growth to even project equity. It recently provided the funds for Climeworks&#x27; direct air capture and storage plant, <a class="gtmContentClick" data-vars-link-text="Orca" data-vars-click-url="https://climeworks.com/plant-orca" data-vars-content-id="24ce6a35-29be-4505-85d1-993d1f9a1731" data-vars-headline="Behind Microsoft&#x27;s very big climate tech quarter" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://climeworks.com/plant-orca" target="_blank">Orca</a>. </li><li>Axios chatted with Brandon Middaugh, Senior Director, Climate Innovation Fund at Microsoft.</li></ul>This interview has been edited for lengthy and clarity.On the big third quarter: &quot;We&#x27;ve become more focused on the target technologies that we view as our &#x27;go gets,&#x27; and have a prepared thesis to tackle opportunities as they arise in those sectors.<ul><li>The priority sectors for us on the carbon front are carbon-free electricity, advanced materials, fuels and carbon removal.</li><li>What sets this quarter apart is the emphasis on scalability. So both of the solutions you mentioned, Redwood and Boston Metal, are both later-stage investments. They&#x27;re productizing their solution and really taking it to scale, and that&#x27;s been a lot of our focus lately.&quot;</li></ul>On sustainable aviation fuel: &quot;Business travel represents a relatively modest part of Microsoft&#x27;s own emissions footprint. It&#x27;s only about 1% of our Scope 3 or less than 1% of our overall emissions footprint. <ul><li>That said, we&#x27;ve recognized that it&#x27;s really one of the deep decarbonization strategies that requires capital participation to kickstart the market. In the sustainable fuel space, we are both a buyer and an investor.</li><li>Sustainable aviation fuel is one of the most difficult markets because of the relatively high cost relative to conventional fuels.&quot;</li></ul>On playing an active role in climate tech startups: &quot;We view this as part of creating the market. If the solutions were already there, we wouldn&#x27;t see the need to do this. <ul><li>But when we made our sustainability commitments in 2020, we recognized that to get there, we were dependent on the presence of new technologies and new solutions in the market that aren&#x27;t there today. </li><li>It was that recognition that we need to have a role in building those markets for them to be there to buy from, that was what drove the thesis, ultimately.&quot;</li></ul>On 2024: &quot;I think the overall theme going into 2024 is: pull all the levers. <ul><li>We&#x27;re trying to do more with our existing portfolio companies on policy advocacy.&quot; </li></ul>On new sectors: &quot;Agriculture and land-based strategies. I think that there&#x27;s more we can do in that space. And that&#x27;s the new sector that we&#x27;re looking at right now.&quot;

Circulate Capital, a firm that backs tech for combating ocean plastic waste, has closed a $76 million second fund to finance climate tech and recycling infrastructure in Southeast Asia, the company tells Axios. 

Why it matters: The coastlines of Southeast Asia have emerged as a hot bed for ocean plastic pollution as developing economies in countries like India, Indonesia and Thailand urbanize but lack reliable waste infrastructure. 

Details: Circulate Capital raised the funds from private investors like Builders Vision, an impact platform founded by Lukas Walton, Asian industrial company Jebsen & Jessen and Minderoo Foundation, a fund co-founded by Fortescue Executive Chairman Andrew Forrest. 

Circulate Capital's first fund, launched in 2018, was backed by corporations like PepsiCo, Procter & Gamble, and Dow, and the firm now has $255 million in assets under management.

Rob Kaplan, Circulate Capital's founder and CEO, told Axios that the new fund brought "private capital into the mix" to "maximize our impact."

The fund has already backed four startups including textile recycling startup Circ, biomaterials companies Algenesis and Phase Change Solutions, and biotech startup Arzeda.

Big picture: Plastic waste is a global problem that requires a variety of different initiatives. 

Industrial companies need to replace single-use virgin plastics with other options like bio-based materials and recycled plastics.

Regions need to invest in waste and recycling infrastructure, as well as next-gen recycling technologies like chemical recycling. 

More regulations are being introduced around plastic waste and recycling including the UN plastics treaty. 

Editor's note: The story has been updated to reflect additional funding.

Exclusive: Circulate Capital closes $76M fund for plastic tech

The firm now has $255M assets under management

A recycling facility in India run by Nepra and backed by Circulate Capital

A recycling facility in India run by Nepra. Photo courtesy of Circulate Capital

Recycling

Circulate Capital, a firm that backs tech for combating ocean plastic waste, has closed a $76 million second fund to finance climate tech and recycling infrastructure in Southeast Asia, the company tells Axios. Why it matters: The coastlines of Southeast Asia have emerged as a hot bed for ocean plastic pollution as developing economies in countries like India, Indonesia and Thailand urbanize but lack reliable waste infrastructure. Details: Circulate Capital raised the funds from private investors like Builders Vision, an impact platform founded by Lukas Walton, Asian industrial company Jebsen &amp; Jessen and Minderoo Foundation, a fund co-founded by Fortescue Executive Chairman Andrew Forrest. <ul><li>Circulate Capital&#x27;s first fund, launched in 2018, was backed by corporations like PepsiCo, Procter &amp; Gamble, and Dow, and the firm now has $255 million in assets under management.</li><li>Rob Kaplan, Circulate Capital&#x27;s founder and CEO, told Axios that the new fund brought &quot;private capital into the mix&quot; to &quot;maximize our impact.&quot;</li><li>The fund has already backed four startups including textile recycling startup Circ, biomaterials companies Algenesis and Phase Change Solutions, and biotech startup Arzeda.</li></ul>Big picture: Plastic waste is a global problem that requires a variety of different initiatives. <ul><li>Industrial companies need to replace single-use virgin plastics with other options like bio-based materials and recycled plastics.</li><li>Regions need to invest in waste and recycling infrastructure, as well as next-gen recycling technologies like chemical recycling. </li><li>More regulations are being introduced around plastic waste and recycling including <a class="gtmContentClick" data-vars-link-text="the UN plastics treaty" data-vars-click-url="https://www.reuters.com/business/environment/after-rough-start-un-plastic-treaty-talks-end-with-mandate-first-draft-2023-06-02/" data-vars-content-id="70460f24-7a17-451c-b3a0-f451d0215c94" data-vars-headline="Exclusive: Circulate Capital closes $76M fund for plastic tech" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.reuters.com/business/environment/after-rough-start-un-plastic-treaty-talks-end-with-mandate-first-draft-2023-06-02/" target="_blank">the UN plastics treaty</a>. </li></ul>Editor&#x27;s note: The story has been updated to reflect additional funding.

Companies that operate heavy-duty trucks with net zero goals are turning to renewable diesel in droves. 

Why it matters: While commercial electric vehicles are gaining traction in some sectors like delivery vans and transit buses, big battery-powered trucks for specific industrial sectors are still hard to find.

Driving the news: Companies took advantage of this week's COP28 to announce low-carbon transportation milestones.

Mexican building materials company Cemex said it now has over 1,000 heavy-duty trucks powered by a combination of renewable diesel and natural gas. 

In Dubai, Cemex, which has a target to become net zero by 2050, showed off a prototype of a fully electric mixer truck but said the reality is that "fully electric heavy-duty trucks are not yet widely available on an industrial scale."

Meanwhile: Mining giant Rio Tinto announced that a copper operation in Utah would replace its diesel use with renewable diesel, including for 90 haul trucks and all heavy machinery.

Rio Tinto, which also has a net zero goal by 2050, likewise said the choice to use renewable diesel was a first step on the way to a longer-term goal to use battery electric haul trucks. 

Zoom in: The market for renewable diesel in the U.S. is booming.

According to Finnish renewable fuel provider Neste, which makes renewable diesel, North America is already the largest renewable diesel market in the world, and demand is growing 2.5 times from 7 million tons in 2023 to 18 million tons by 2030.

Because renewable diesel can be used in existing infrastructure, it's a relatively easy swap to make.

Demand is being driven by both sustainability goals and regulations like California's Low Carbon Fuels Standard and the federal Renewable Fuel Standard. The Energy Information Administration says almost all renewable diesel in the U.S. is consumed in California.

Of note: Last year, renewable diesel consumption in the U.S. outpaced biodiesel consumption for the first time.

Yes, but: When it comes to biofuels the devil is in the details: feedstocks. 

While some companies are using waste, like used cooking oil and animal fats, others are opting for soybean oil.

Biofuels already make up 40% of soybean oil demand in the U.S., and as more renewable diesel production plants come online, that number could soar.

Biofuels become more complicated when they use feedstocks that are part of crops. Soybeans compete with corn for production on farmland.

Thought bubble: Renewable diesel can significantly lower carbon emissions associated with companies' transportation in the short term, but fuel producers should prioritize waste as a feedstock. 

In the longer term, all companies aiming to reduce transportation emissions need a plan to incorporate electric vehicles.

Renewable diesel wins over heavy-duty trucking companies

But the use of soybean oil could become a problem

Trucks

Companies that operate heavy-duty trucks with net zero goals are turning to renewable diesel in droves. Why it matters: While commercial electric vehicles are gaining traction in some sectors like delivery vans and transit buses, big battery-powered trucks for specific industrial sectors are still hard to find.Driving the news: Companies took advantage of this week&#x27;s COP28 to announce low-carbon transportation milestones.<ul><li>Mexican building materials company <a class="gtmContentClick" data-vars-link-text="Cemex said" data-vars-click-url="https://www.businesswire.com/news/home/20231204697349/en/Cemex-passes-1000-lower-carbon-truck-milestone/?feedref=JjAwJuNHiystnCoBq_hl-WepL6sRhX6ZA9uIKkLyMC2Ka1ah7uC6RdZY8DBvigxR7fxFuNFTHSunhvli30RlBNXya2izy9YOgHlBiZQk2LO4aHursdTgjq-KNSSWsKUa97ZTKjNldK1STeKrUjqbvg==" data-vars-content-id="7f672af6-ef03-4ed9-8d82-8d976b7e8c74" data-vars-headline="Renewable diesel wins over heavy-duty trucking companies" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.businesswire.com/news/home/20231204697349/en/Cemex-passes-1000-lower-carbon-truck-milestone/?feedref=JjAwJuNHiystnCoBq_hl-WepL6sRhX6ZA9uIKkLyMC2Ka1ah7uC6RdZY8DBvigxR7fxFuNFTHSunhvli30RlBNXya2izy9YOgHlBiZQk2LO4aHursdTgjq-KNSSWsKUa97ZTKjNldK1STeKrUjqbvg==" target="_blank">Cemex said</a> it now has over 1,000 heavy-duty trucks powered by a combination of renewable diesel and natural gas. </li><li>In Dubai, Cemex, which has a target to become net zero by 2050, showed off a prototype of a fully electric mixer truck but said the reality is that &quot;fully electric heavy-duty trucks are not yet widely available on an industrial scale.&quot;</li></ul>Meanwhile: Mining giant Rio Tinto <a class="gtmContentClick" data-vars-link-text="announced" data-vars-click-url="https://www.businesswire.com/news/home/20231205014862/en/Rio-Tinto-Kennecott-to-fully-transition-to-renewable-diesel/?feedref=JjAwJuNHiystnCoBq_hl-YKT6SDyMw5Lye4ovXwHmkqD8R-QU5o2AvY8bhI9uvWSD8DYIYv4TIC1g1u0AKcacnnViVjtb72bOP4-4nHK5idAXrgr_e1ZUbxvK6BY66Xm" data-vars-content-id="7f672af6-ef03-4ed9-8d82-8d976b7e8c74" data-vars-headline="Renewable diesel wins over heavy-duty trucking companies" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.businesswire.com/news/home/20231205014862/en/Rio-Tinto-Kennecott-to-fully-transition-to-renewable-diesel/?feedref=JjAwJuNHiystnCoBq_hl-YKT6SDyMw5Lye4ovXwHmkqD8R-QU5o2AvY8bhI9uvWSD8DYIYv4TIC1g1u0AKcacnnViVjtb72bOP4-4nHK5idAXrgr_e1ZUbxvK6BY66Xm" target="_blank">announced</a> that a copper operation in Utah would replace its diesel use with renewable diesel, including for 90 haul trucks and all heavy machinery.<ul><li>Rio Tinto, which also has a net zero goal by 2050, likewise said the choice to use renewable diesel was a first step on the way to a longer-term goal to use battery electric haul trucks. </li></ul>Zoom in: The market for renewable diesel in the U.S. is booming.<ul><li><a class="gtmContentClick" data-vars-link-text="According to" data-vars-click-url="https://www.neste.com/investors/calendar/capital-markets-day#ea406c7d" data-vars-content-id="7f672af6-ef03-4ed9-8d82-8d976b7e8c74" data-vars-headline="Renewable diesel wins over heavy-duty trucking companies" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.neste.com/investors/calendar/capital-markets-day#ea406c7d" target="_blank">According to</a> Finnish renewable fuel provider Neste, which makes renewable diesel, North America is already the largest renewable diesel market in the world, and demand is growing 2.5 times from 7 million tons in 2023 to 18 million tons by 2030.</li><li>Because renewable diesel can be used in existing infrastructure, it&#x27;s a relatively easy swap to make.</li><li>Demand is being driven by both sustainability goals and regulations like California&#x27;s Low Carbon Fuels Standard and the federal Renewable Fuel Standard. The Energy Information Administration <a class="gtmContentClick" data-vars-link-text="says" data-vars-click-url="https://www.eia.gov/todayinenergy/detail.php?id=57180" data-vars-content-id="7f672af6-ef03-4ed9-8d82-8d976b7e8c74" data-vars-headline="Renewable diesel wins over heavy-duty trucking companies" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.eia.gov/todayinenergy/detail.php?id=57180" target="_blank">says</a> almost all renewable diesel in the U.S. is consumed in California.</li></ul>Of note: Last year, renewable diesel consumption in the U.S. outpaced biodiesel consumption for the first time.Yes, but: When it comes to biofuels the devil is in the details: feedstocks. <ul><li>While some companies are using waste, like used cooking oil and animal fats, others are opting for soybean oil.</li><li>Biofuels <a class="gtmContentClick" data-vars-link-text="already make up" data-vars-click-url="https://www.reuters.com/business/energy/us-rush-renewable-diesel-may-ignite-fresh-food-fight-maguire-2022-11-08/" data-vars-content-id="7f672af6-ef03-4ed9-8d82-8d976b7e8c74" data-vars-headline="Renewable diesel wins over heavy-duty trucking companies" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.reuters.com/business/energy/us-rush-renewable-diesel-may-ignite-fresh-food-fight-maguire-2022-11-08/" target="_blank">already make up</a> 40% of soybean oil demand in the U.S., and as more renewable diesel production plants come online, that number <a class="gtmContentClick" data-vars-link-text="could soar" data-vars-click-url="https://www.dtnpf.com/agriculture/web/ag/news/article/2023/11/03/increased-renewable-diesel-soybean" data-vars-content-id="7f672af6-ef03-4ed9-8d82-8d976b7e8c74" data-vars-headline="Renewable diesel wins over heavy-duty trucking companies" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.dtnpf.com/agriculture/web/ag/news/article/2023/11/03/increased-renewable-diesel-soybean" target="_blank">could soar</a>.</li><li>Biofuels become more complicated when they use feedstocks that are part of crops. Soybeans compete with corn for production on farmland.</li></ul>Thought bubble: Renewable diesel can significantly lower carbon emissions associated with companies&#x27; transportation in the short term, but fuel producers should prioritize waste as a feedstock. <ul><li>In the longer term, all companies aiming to reduce transportation emissions need a plan to incorporate electric vehicles.</li></ul>

The United Arab Emirates is pledging $30 billion for a climate fund, working with BlackRock, TPG and Brookfield as launch partners, the groups announced on Friday at COP28.

Why it matters: UAE officials dubbed the fund, called Alterra, "the world's largest private investment vehicle for climate change action," and it's working with some of the top U.S. financial groups.

Details: Alterra is two vehicles, wrote Ben Geman in Generate. 

The $25B "acceleration" fund will steer capital toward developed and emerging markets. The $5B "transformation" fund will provide risk mitigation finance to areas including least-developed nations and small island states.

The energy and climate tech fund and its partners are "actively exploring" opportunities like a 5GW+ slate of African wind and solar projects.

An initial $6.5B commitment includes funds for developing over 6 gigawatts of new "clean energy" capacity in India.

Of note: Climate Tech VC has more on the specific fund projects with BlackRock, TPG and Brookfield.

Yes, but: Controversial COP28 head Sultan Ahmed al-Jaber chairs the fund's board.

Thought bubble: The fund is a major commitment to concessional finance, Andrew Freedman writes, but especially in the least developed countries where energy transition needs are most acute. 

However, the lack of a track record of UAE renewables funding, and the placement of a controversial COP chair atop the masthead, is likely to be met with considerable skepticism.

UAE launches $30B climate fund, working with BlackRock and TPG

The fund is chaired by Sultan Ahmed al-Jaber

United Arab Emirates

The United Arab Emirates is pledging $30 billion for a climate fund, working with BlackRock, TPG and Brookfield as launch partners, the groups announced on Friday at COP28.Why it matters: UAE officials dubbed the fund, called <a class="gtmContentClick" data-vars-link-text="Alterra" data-vars-click-url="https://link.axios.com/click/33546944.12294/aHR0cHM6Ly93d3cuYWx0ZXJyYS5hZS8_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPW5ld3NsZXR0ZXJfYXhpb3NnZW5lcmF0ZSZzdHJlYW09dG9w/58b8b9c18cc2b29a4e8b45d0B30bfe6dc" data-vars-content-id="af4a2d84-64dd-4f49-a3dc-ca1ee3345290" data-vars-headline="UAE launches $30B climate fund, working with BlackRock and TPG" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/33546944.12294/aHR0cHM6Ly93d3cuYWx0ZXJyYS5hZS8_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPW5ld3NsZXR0ZXJfYXhpb3NnZW5lcmF0ZSZzdHJlYW09dG9w/58b8b9c18cc2b29a4e8b45d0B30bfe6dc" target="_blank">Alterra</a>, &quot;the world&#x27;s largest private investment vehicle for climate change action,&quot; and it&#x27;s working with some of the top U.S. financial groups.Details: Alterra is two vehicles, <a class="gtmContentClick" data-vars-link-text="wrote Ben Geman" data-vars-click-url="https://www.axios.com/newsletters/axios-generate-043150fe-b8ec-4cde-aa5d-cbb6012a8d65.html#story1" data-vars-content-id="af4a2d84-64dd-4f49-a3dc-ca1ee3345290" data-vars-headline="UAE launches $30B climate fund, working with BlackRock and TPG" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/newsletters/axios-generate-043150fe-b8ec-4cde-aa5d-cbb6012a8d65.html#story1" target="_self">wrote Ben Geman</a> in Generate. <ul><li>The $25B &quot;acceleration&quot; fund will steer capital toward developed and emerging markets. The $5B &quot;transformation&quot; fund will provide risk mitigation finance to areas including least-developed nations and small island states.</li><li>The energy and climate tech fund and its partners are &quot;actively exploring&quot; opportunities like a 5GW+ slate of African wind and solar projects.</li><li>An initial $6.5B commitment includes funds for developing over 6 gigawatts of new &quot;clean energy&quot; capacity in India.</li></ul>Of note: <a class="gtmContentClick" data-vars-link-text="Climate Tech VC has more" data-vars-click-url="https://www.ctvc.co/alterra-30b/" data-vars-content-id="af4a2d84-64dd-4f49-a3dc-ca1ee3345290" data-vars-headline="UAE launches $30B climate fund, working with BlackRock and TPG" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.ctvc.co/alterra-30b/" target="_blank">Climate Tech VC has more</a> on the specific fund projects with BlackRock, TPG and Brookfield.Yes, but: Controversial COP28 head Sultan Ahmed al-Jaber chairs the fund&#x27;s board.Thought bubble: The fund is a major commitment to concessional finance, Andrew Freedman writes, but especially in the least developed countries where energy transition needs are most acute. <ul><li>However, the lack of a track record of UAE renewables funding, and the placement of a controversial COP chair atop the masthead, is likely to be met with considerable skepticism.</li></ul>

Katie Fehrenbacher

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