The IFC partners with AP Moller on climate finance: The International Finance Corporation (IFC) is investing USD 50 mn in Danish shipping company AP Moller’s Emerging Markets Infrastructure Fund II, according to a statement released earlier this week. The loan aims to help AP Moller tackle infrastructure gaps, facilitate trade, and boost access to renewable energy in Asia and Africa. The Danish fund aims to raise USD 1 bn in green financing.

Where’s the money going: 60% of the USD 1 bn funding package is planned for onshore transport projects spanning from ports and storage, roads and rail, to warehouses and distribution ventures, while the remaining 40% of the financing strategy will be set aside for renewable energy and electricity distribution projects. Half of the fund is packaged towards development projects in Africa, with the remainder earmarked for the South and South East Asian Markets.

Why the focus on greenifying transport and port operations? The IFC notes the global shipping sector contributed to around 25% of global energy-related greenhouse gas output in 2022, the IFC notes. In our neck of the woods, a US-backed plan to establish an economic corridor linking Europe with the Middle East and India via a green rail and sea corridors is in the works. Regional players including KSA are separately running trials for hydrogen-powered railway networks in a bid to cut emissions from the transport sector. On the port operation front, UAE-based DP World signed an agreement with the International Renewable Energy Agency (Irena) last month to collaborate on scaling up the use of renewable-based fuels and electrifying the shipping and ports sectors.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Fortescue secures funding for Norwegian green ammonia project: Mining giant Fortescue has received nearly EUR 204 mn from the EU to finance its flagship green ammonia plant which will ship surplus green ammonia to domestic and European markets. Fortescue approved USD 750 mn total in investments in green energy projects and one green steel project last month. (Statement)
  • Adani Group’s Ambuja Cements invests in green energy projects: Indian conglomerate Adani Group’s cement and construction material making arm Ambuja Cements is set to invest USD 723 mn to build solar and wind energy projects with a total capacity of 1 GW. (Statement)
  • Sembcorp to supply green ammonia to Japan: Singapore’s Sembcorp has inked MoUs with two Japanese firms — conglomerate Sojitz Corp and energy company Kyushu Electric Power — to export green ammonia produced in India to Japan. (Reuters)
  • China allocates USD 33 bn to renovate disaster-hit areas: The Chinese finance ministry has earmarked over USD 33 bn from sovereign bonds to renovate infrastructure in areas affected by natural disasters, including climate-induced crisis. China has grappled with ultra-low temperatures in January, record rainfall, and a blistering hot summer, swings that scientists have attributed to climate change. (Reuters)
  • VinFast + Marubeni ink agreement to recycle used EV batteries: Vietnamese EV maker VinFast has signed an MoU to supply Japan’s Marubeni Corporation with used EV batteries that Marubeni will then repurpose into Battery Energy Storage Systems. (Reuters)
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