Scalar International and Mergence Investment Managers are looking to raise up to USD 150 mn for the Africa Decarbonisation Fund I, Bloomberg reported on Monday. The fund aims to back energy efficiency and renewables upgrades in 30k buildings across southern African nations and will invest in companies providing infrastructure for power generation, energy storage, EV charging stations, and smart-grid systems. Around 30% of the fund’s capital will target projects in South Africa.

Mostly European money: Roughly 80% of the fund’s capital will be sourced from global climate funds and European finance institutions, with the remainder coming from African players. Scalar and Mergence are in “advanced negotiations” with the EU-Africa Global Gateway Investment Package — the European Union’s EUR 150 bn initiative to spur investments in Africa.

Trump spares solar cell imports from tariffs: The US has exempted solar cells, semiconductors, and other electronic components from reciprocal tariffs, CNBC reported last week, citing a US’ Customs and Border Protection statement. The 20 exempted products are spared from both the 125% tariff on Chinese goods and the 10% baseline tariff on tech imports from other states, yet a separate 20% blanket tariff on all Chinese imports remains in place. The White House said the move is intended to give companies time to shift production to the US.

Cambridge University + UNJSPF back climate-focused bond index: Cambridge University and the UN Joint Staff Pension Fund (UNJSPF) are reallocating up to USD 750 mn into a new bond index that excludes companies that are expanding fossil fuel production, Reuters reported last week. Cambridge will invest up to GBP 200 mn (c.USD 261 mn), while the UNJSPF will contribute up to USD 500 mn. The Index is expected later this year. The Bloomberg Cambridge University Fixed Income Index — developed with input from CalSTRS, the UK’s Universities Superannuation Scheme, and Switzerland’s PUBLICA — filters out both firms increasing oil and gas output and financial institutions that continue to lend them.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • US halts USD 5 bn offshore wind project: The Trump administration has ordered a stop to all construction on Equinior’s USD 5 bn, 810 MW Empire Wind project off the coast of New York, which, unlike other renewable energy projects, relies on federal permitting. More than 90% of planned offshore wind projects — over 60 GW — are now at “serious risk,” according to consultancy Rystad Energy. (The Financial Times)
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