The biggest public pension plan in the US, Calpers, will allocate USD 25 bn to green investments over the next six years with a focus on Asia and Europe, according to The Financial Times. Calpers is now assessing which private equity, real estate, and infrastructure markets to invest in. The funds are part of USD 53 bn Calpers pledged back in November for low carbon assets and will make the fund one of the world’s top investors in climate solutions globally.

REMEMBER- ESG divestments have been on the rise: A lobbying campaign against environmental, social, and governance (ESG) investments headed by the US Republican Party has led to the withdrawal of USD 13.3 bn in March from Blackrock on the back of its inclusion in a list of firms that “boycott fossil fuel companies.” The pressure has led to BlackRock scaling back its climate commitments, and JP Morgan Asset Management, Bond manager PIMCO, and PFZW — one of two Dutch pension funds tapped back in 2022 to lead negotiations with Shell on behalf of Climate Action — stepping away from Climate Action 100+.

IN OTHER GREEN INVESTMENT NEWS- Australia’s largest pension fund is expanding its critical minerals assets: Australia’s biggest pension fund AustralianSuper has grown its critical minerals portfolio to AUD 12 bn (USD 7.9 bn) and plans to expand further in the next five years, Bloomberg reported. The fund already pledged to more than double its lithium investments, from AUD 1 bn to around AUD 2.5-3 bn in January. The federal government has also pledged to direct AUD 22.7 bn to critical minerals, hydrogen, and green metals under its Future Made in Australia program. Like the US, Australia is trying to steer away from dependence on Chinese minerals and, as an ally and free trade partner, can benefit from the US’ Inflation Reduction Act tax breaks on electric vehicles produced with non-Chinese materials.

Japanese oil producer and refiner Idemitsu Kosan has invested USD 114 mn into HIF Global, a global e-fuel producer, for an unspecified stake in the company, according to a press release (pdf). The funding will go towards e-methanol, blue ammonia, and sustainable aviation fuel (SAF) projects. Idemtisu Kosan joins existing shareholders including US investment firm EIG, Porsche, US energy company Baker Hughes, and India’s Gemstone Investments, who have contributed a total of USD 164 mn.

REMEMBER- HIF Global is advancing its tech: The company signed a commercial agreement with Honeywell International last year for the production of eSAF, becoming the first customer to seek the new technology. It expects to deploy the technology at its second commercial-scale eFuels facility in the US which would recycle c. 2 mn tons of captured CO2 to produce c.11k barrels per day of eSAF by 2030.

And Idemitsu Kosan is interested in ammonia from the region: Idemitsu Kosan is looking to import ammonia from the UAE, President and CEO Shunichi Kito said in 2022. Idemitsu is also looking to decarbonize the Shunan complex by 2030 by substituting coal with blue ammonia from the UAE and Saudi Arabia, Kito said.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Pertamina signs two CCS agreements: Indonesia's state energy company Pertamina has signed a framework agreement with ExxonMobil and South Korea's KNOC to develop a carbon capture and storage hub in Indonesia. Pertamina and ExxonMobil also signed an agreement for preliminary work to develop and build the CCS hub in the Sunda-Asri basins in the Java Sea. (Reuters)
  • China is ramping up energy efficiency plans to meet targets: China's National Development and Reform Commission (NDRC) is requiring provinces to develop energy-efficiency plans for entities responsible for 70% of consumption and carbon emissions by the end of 2025. The plan, which aims to remedy the failure to meet targets, will cover entities consuming at least 5k metric tons of standard coal equivalent, which numbers about 20k entities nationally. (Reuters)
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