Biotech startup ZymoChem announced today that it has raised $21 million, with proceeds from the Series A funding round, in addition to funding from the U.S. Department of Energy and existing revenues, to be used to launch its first high-performance material and advance its first partnered product to commercial scale.

Founded in 2013, California-based ZymoChem uses microbes to convert renewable feedstocks into high-value, biodegradable polymers with a near-zero CO2 emissions footprint. According to the company, the process produces materials with a cost advantage over petroleum-based products, and at higher yields than current biomanufacturing.

Harshal Chokhawala, Co-Founder and CEO of ZymoChem said:

“We’re upending the materials industry. Our technology delivers sustainability without compromising performance, scale, and importantly economics. This unlock already catalyzed multiple partnerships with world-leading companies and we’re thrilled to expand our impact with our key stakeholders.”

The funding round was led by bioscience-focused venture investor Breakout Ventures with participation from new investors including lululemon athletica and Toyota Ventures, as well as existing investors including GS Futures, KdT Ventures, and Cavallo Ventures.

Lindy Fishburne, Managing Partner at Breakout said:

“ZymoChem has the most compelling technology we’ve seen to scale bio-based chemicals and materials while remaining cost competitive with petroleum-derived products.”

Element Zero, a green materials platform company, announced today that it has raised $10 million in seed funding, with proceeds to be used to scale up its platform aimed at decarbonizing iron and other critical metals production.

Founded in 2022, Element Zero offers a cost effective and efficient platform for the conversion of iron ore and other metals into their pure metal form with zero carbon emissions, using a non-aqueous electrochemical process to process the full spectrum of iron ores at a lower temperature that can run on intermittent renewables like wind, solar, and hydropower. The company said that it uses 30-40% less energy per ton of iron than coal and gas-based processes, without the CO2. Steelmaking is one of the biggest emitters of CO2 globally, and one of the more challenging sectors to abate, with total greenhouse gas emissions (GHG) from the sector accounting for 7% – 9% of direct emissions from the global use of fossil fuels.

Based in Perth and the north of Western Australia, adjacent to ports responsible for nearly 55% of the world’s seaborne iron ore supply, Element Zero plans to develop five million tons per year of iron ore feed, producing around 2.7 million tons of high purity iron.

The company said that it will use the new funding to grow its R&D engineering, and project development teams and scale the development of a pilot iron plant.

Michael Masterman, Founder and CEO of Element Zero said:

“Our processing platform will, for the first time, allow cost-effective and scalable production of carbon-free metals crucial to the iron and steel and critical metals industries. We are excited to have Playground Global join our journey to tackle the decarbonization of hard-to-abate sectors. Support from Playground Global goes way beyond financial investment, and we are already in deep discussions about developing green iron and green silicon value chains in the U.S. We are also working with major iron ore miners and iron and steel companies globally.”

The funding round was led by early-stage venture capital firm Playground Global. Peter Barrett, Co-Founder and General Partner at Playground Global, has joined the company’s board of directors.

Barrett said:

“Element Zero will help transform Western Australia from the world’s mine into the world’s foundry, dramatically reducing carbon emissions in the process. Australia is poised to become a leader in resilient and sustainable global prosperity – its natural wealth in minerals and renewable energy blended with innovation in electrochemistry and new materials will cement its leadership in the energy transformation. Element Zero is a major catalyst in this shift and the Pilbara region in the north of Western Australia stands as the premier location globally to showcase the company’s potential.”

Lawmakers in the European Parliament and Council announced today that they have reached a provisional agreement on proposed new rules to strengthen emissions standards for heavy-duty vehicles, including a requirement for a 90% emissions reduction for heavy trucks by 2040.

Additional interim requirements covered by the agreed standard include 45% emissions reductions from 2030, and 65% from 2035.

The agreement follows an initial proposal by the European Commission in February 2023 for a revision of the CO2 emissions standards for heavy duty vehicles (HDVs). Trucks and buses account for over 6% of total greenhouse gas (GHG) emissions in the EU, and more than 25% of GHG emissions from road transport.

Among the most significant revisions in the new agreement to the Commission’s initial proposal include an expansion of the scope of the regulation aimed at making nearly all HDVs subject to emissions reduction targets, including smaller trucks, urban buses, coaches and trailers, while allowing exemptions such as small-volume manufacturers and vehicles used for mining, forestry and agriculture, and vehicles for use by the armed forces, fire services, or in civil protection, public order and medical care. Additionally, the agreement extends the scope of the regulation to vocational vehicles such as garbage trucks or concrete mixers from 2035, while also introducing a 2035 100% zero emissions target for urban buses, with an intermediate 90% 2030 goal.

The agreement also includes a requirement for the Commission to review the effectiveness and impact of the amended regulation in 2027, including evaluating the possibility of developing a common methodology for the assessment and reporting of the full lifecycle CO2 emissions of new HDVs, studying the potential role of introducing a carbon correction factor (CCF) to enable the inclusion of renewable fuels and carbon neutral e-fuels in the fleet transition mix, and assessing the role of a methodology for registering HDVs exclusively running on CO2-neutral fuels.

With the provisional agreement reached, the new regulation will need to be endorsed by member states’ representatives on the Council and by Parliament’s environment committee, and then formally adopted by the Parliament and Council before entering into force.

Global commodities trading company Trafigura announced a new agreement with 1PointFive, the Direct Air Capture (DAC)-focused subsidiary of energy giant Occidental (Oxy) for the advance purchase of carbon credits to be produced from 1PointFive’s industrial DAC facility, STRATOS.

Announced at the World Economic Forum’s (WEF) Annual Meeting in Davos, Switzerland, the agreement marks Trafigura’s first transaction under its commitment as a Founding Member of the First Movers Coalition (FMC). Trafigura launched the commitment at last year’s WEF meeting, pledging to purchase at least 50,000 tons of carbon dioxide removal credits by the end of 2030.

FMC was launched at the COP26 climate conference, creating a coalition of companies committed to creating early markets for clean technologies addressing hard-to-abate sectors. By setting major advanced purchase commitments to be met by 2030, the coalition sends strong market signals enabling the scaling and commercialization of clean technologies including near-zero carbon steel, aluminum, shipping, trucking and aviation, as well as advanced carbon dioxide removal solutions.

Hannah Hauman, Global Head of Carbon Trading for Trafigura, said:

“We are delighted to collaborate with 1PointFive as we expand our global customer offering for hard-to-abate sectors. Supporting the development of large-scale removals projects demonstrates our commitment to advancing carbon sequestration technologies, underpinning demand today to enable the scaling of production for tomorrow.”

DAC technology, listed by the IEA as a key carbon removal option in the transition to a net-zero energy system, extracts CO2 directly from the atmosphere for use as a raw material or permanently removed when combined with storage. According to the landmark Intergovernmental Panel on Climate Change (IPCC) climate change mitigation study released last year, scenarios that limit warming to 1.5°C include carbon dioxide removal methods scaling to billions of tons of removal annually over the coming decades, with DAC positioned to potentially account for a significant portion of the total.

Most solutions that capture and store CO2 are early stage and currently limited in scale, including DAC. 1PointFive is currently constructing STRATOS in Ector County Texas, which it expects to be the largest DAC facility in the world to date, designed to capture 500,000 tonnes of CO2 per year when fully operational.

According to the companies, the advance purchase of credits by Trafigura will help to support the adoption of 1PointFive’s CDR credits to help hard-to-abate industries address their emissions.

Michael Avery, President and General Manager of 1PointFive, said:

“Our work with Trafigura is rooted in a shared commitment to the climate and an understanding of the critical role that durable carbon removal, specifically Direct Air Capture, plays in helping organizations address their carbon footprint. We are excited about this agreement because it establishes our collaboration with a global commodities firm focused on reducing emissions across the value chain.”

Global impact investor BlueEarth Capital AG announced today that it has reached $378 million in investor commitments for its private equity climate impact strategy, BlueEarth Climate Strategy, Commitments include $308 million from the BlueEarth Climate Growth Fund, and $70 million from LPs in a tailored mandate and co-investments.

Founded in 2015, Switzerland-based Blue Earth Capital manages investment strategies for professional investors seeking market-rate returns, in addition to addressing social and environmental challenges. The firm is owned by Swiss not-for-profit Blue Earth Foundation, which re-invests 100% of the firm’s operating profits in support of its philanthropic activities.

BlueEarth’s Climate Growth Fund, classified as Article 9 under the SFDR regulation, invests in companies in North America and Europe at the growth stage, between venture and buyout, that are working to accelerate the net zero transition, improve society’s resilience to climate change, and promote a circular economy.

The climate strategy targets investments across five key themes, including energy transition, buildings and mobility, climate intelligence, production and consumption, and food and agriculture.

Kayode Akinola, Head of Private Equity at Blue Earth Capital, said:

“The significant investor commitments received for the BlueEarth Climate Strategy demonstrate the essential role of for-profit impact investing in helping to address some of the world’s biggest climate challenges. Through this strategy, BlueEarth is addressing opportunities graduating from the venture stage but still too early for traditional buyouts – catalysing climate solutions of the future whilst aiming for attractive, market-rate returns.”

By: John McCalla-Leacy, Global Head of ESG at KPMG

Last month COP28 closed in Dubai – achieving a number of landmark agreements and pledges. The summit took place in a nation that’s built its wealth on fossil fuels and amid a backdrop of a challenging geopolitical and economic landscape. As many governments and central banks grapple with inflation, supply chain bottlenecks and conflicts, a constant risk persists that immediate attention is placed on that which ‘seems’ most urgent, to the detriment of the important, and that ESG may slip off the radar. Personally, I left the UAE with a sense of cautious optimism. It wasn’t perfect, but the world seems to be moving in the right direction.

The agreement to ‘transition away from fossil fuels’ may have attracted criticism for the absence of ‘phase down’ language but the importance of the deal and how much it moves the debate forward should not be underestimated. The world is not there yet, but even recognizing on a collective level that there is a need to shift away from fossil fuels is a big deal. Coal, oil and gas account for three quarters of the world’s greenhouse gas emissions. The stark reality is that a failure to deliver a truly just energy transition, that meets the needs of both developing and developed nations – will be a failure to solve the climate crisis. Expect the world’s decision makers increase the number and depth of conversations on what actions are needed when they meet here in Davos and at future COP summits.

The COP28 summit demonstrated that there is growing awareness of renewable’s potential. There was agreement to aim to triple renewable energy capacity and double energy efficiency by 2030 whilst recognizing the need to peak global emissions by next year, 2025.  The shift to renewables is a fundamental enabler to a low carbon economy, but it won’t be easy. KPMG’s report ‘Turning the tide in scaling renewables’ highlighted the challenges ahead. A majority of industry execs surveyed (84 percent) shared that current market barriers were causing delays to roll out or funding of renewable projects.

The research in the KPMG report highlights the scale of what lies ahead. Here in Davos, business and political leaders have an opportunity to act. As the world edges closer to 2030 all the evidence suggests we will struggle to meet the original Paris Agreement targets. Indeed, if all COP28 pledges are met, the world would still fall short of keeping global warming below 1.5 degrees. Despite growing commitment and consensus, there remains key barriers to unlocking new, cleaner sources of energy and more needs to be done to communicate in a simpler, more transparent way on the impact each of us is making – positively and negatively in the world.

This week there’ll be a lot about the potential of technology and innovation, which may be leveraged to accelerate action on climate. Among them – AI. It’s something I’ve spoken about recently and I’m excited about what it can do. Whether it’s analyzing large data sets to support companies’ disclosure requirements or helping to auto-generate company specific decarbonization pathways and build transition plans, AI’s possibilities are huge. But so too is its potential to actually add to the damage being done to the planet. With questions raised about the vast amount of computing power needed to meet the AI demand as well as how the world can ensure that AI is utilized with appropriate governance and controls.

Talk of innovation in potential future technology solutions is encouraging, but innovation is also needed in the way that businesses are managed.  One example of how the business community is stepping up to this challenge, is the recent work of the World Business Council for Sustainable Development (WBCSD). Here 200 CEO-led organizations, including KPMG, are coming together to accelerate the transition to a net-zero world. WBCSD has provided guidance on how businesses may better embed the accountability for climate action into Corporate Performance and Accountability systems (CPAS) and drive the link between financial markets and sustainable business transformation.

As my week in Davos draws to a close – I recall the words of the UN Climate Change Executive Secretary, who at COP28 called “all the governments and businesses…to turn pledges into real economy outcomes, without delay”.

The work ahead, to deliver a just and low carbon economy resonates with the themes of Davos around security and trust, but these are set against the backdrop of more than half the world’s population going to elections 2024 at a time of ongoing geopolitical uncertainty. My view is 2024 will be a critical year. Business leaders should not wait for regulatory change.  If you haven’t already acted, then act now. Embed ESG in everything you do. Put the right people and right tools in place with appropriate levels of funding. Monitor, measure and respond. The climate crisis is not something to worry about in the future. It’s happening now. For leaders – across business and politics – this is our collective moment to do the right thing.

John McCalla-Leacy is Global Head of ESG at KPMG International

Global automotive supplier KIRCHHOFF Automotive announced today a seven-year, €130 million agreement with Swedish company H2 Green Steel for the delivery of near zero emissions steel in order to decarbonize its supply chain and achieve its sustainability goals. 

Steel is the main component of KIRCHHOFF Automotive’s supply chain, accounting for half its material purchases, with 90% of the company’s carbon footprint is originating through the use  of conventionally produced steel and aluminum.

KIRCHHOFF said that orders from international car manufacturers for upcoming generations of vehicles make it clear that the demand for safe and sustainable body-in-white parts will increase strongly in the coming years. According to Michael Rank, Global Executive Vice President Procurement at KIRCHHOFF, customers “want to see products with lower CO2 footprint.”

Rank added:

“This matches our ambitions to be in the forefront of sustainable development in the industry, as well as our legacy where sustainability has always been important. It’s great to be able to work with a new player on the market and the team at H2 Green Steel have really pushed the steel industry to do more and move faster in terms of sustainability.” 

Steelmaking is one of the biggest emitters of CO2 globally, and one of the more challenging sectors to abate, with total greenhouse gas emissions (GHG) from the sector accounting for 7% – 9% of direct emissions from the global use of fossil fuels.

Founded in 2020, H2 Green Steel is developing its flagship green steel plant in Boden, Sweden, with the project including a giga-scale green hydrogen plant as an integrated part of the steel production facility. The company employs hydrogen produced using green power to remove the oxygen from iron oxide, avoiding most of the CO2 emissions normally produced, and uses electricity from 100% renewable sources for the energy requirements generated in the manufacturing process. H2 Green Steel aims to begin production in 2025, with plans to produce 5 million tons of nearly fossil-free steel by 2030.

Deliveries of green steel from H2 Green Steel’s Boden plant to KIRCHOFF’s plants across Europe are expected to begin in 2027.  The two companies will also work together on a circularity initiative, aiming to send at least 30% of the steel scrap volumes back to H2 Green Steel’s electric arc furnaces in Boden for recycling. 

Stephan Flapper, Head of Commercial, H2 Green Steel said:

“Suppliers to the automotive industry have to follow the ambitious plans that progressive car makers have set out. However, we also have a group of companies that run before the rest as they follow their own compass. KIRCHHOFF Automotive is one such company. They combine their impressive legacy with a strong direction for the future where sustainable products are as much a competitive edge, as they are important for the climate and sustainability targets.”

Investment management firm Fidelity International announced today a new focused sustainable investment approach, targeting four systemic themes, including nature loss, climate change, strong and effective governance, and social disparities, which will drive the firm’s engagement approach towards influencing positive change.

According to Fidelity’s Chief Sustainability Officer Jenn-Hui Tan, the four focus themes were selected “as these present the most significant systemic risks for our economic and social systems.

Tan added:

“Failing to address these issues or looking at each issue in isolation will prevent us from collectively transitioning to a sustainable economy and will negatively impact portfolios.”

Fidelity’s focus on nature loss follows the recent launch in late 2023 by the firm of its Nature Roadmap, outlining the company’s approach to the integration of nature in its sustainable investments and stewardship processes. The firm is also a foundation member and signatory of the Finance for Biodiversity pledge, a collaboration of more than 150 financial institutions representing more than $22 trillion in assets under management, committed to protect and restore biodiversity through their financing activities and investments, sharing knowledge; engage with companies, assess impact, set targets and reporting publicly on these activities before 2025. Under its new sustainable investment approach in 2024, Fidelity said that it will address nature loss issues through its engagement activities, and vote against companies in high-risk sectors that fail to meet expectations on deforestation-related practices and disclosure.

On the climate front, Fidelity said that it will continue to reinforce its approach based on its goals, which include achieving net zero across its investment portfolios by 2050 and halving portfolio carbon footprint by 2030. The firm said that it aims to champion further developments in transition finance, including innovation in sustainable debt instruments, and that it will seek regulatory engagement opportunities encouraging governments to close policy gaps to make green technologies cheaper, and with regulators working to effectively channel transition financing.

Fidelity’s social disparities efforts will focus on the Just Transition, with the firm noting that an unintended consequence of initiatives to decarbonize could be increased inequalities, which could “impede climate action and potentially negatively impact individual companies’ prospects, and investors’ portfolios overall.” The firm said that it will utilize active stewardship in 2024, particularly in its thermal coal engagement programme, to support social transitions in communitie that require it most. Fidelity has committed to phase out investment in thermal coal by 2030 in OECD countries and in the rest of the world by 2040.

In its efforts to target “strong and effective governance,” Fidelity said that it will intensify its dialogue, and utilize voting and shareholder resolutions in situations in which companies’ governance-related actions and efforts are deemed inadequate, with a focus on issues including board effectiveness, corporate culture and behaviour, remuneration and shareholders’ rights and transparency. 

Tan said:

“In 2024, Fidelity will strive to amplify its active ownership approach as a positive force for driving sustainable business practices in the companies we invest in. In parallel we will continue to contribute actively to the development of key regulations such as SFDR and the implementation of regulation coming into force this year such as CSRD, which we think will be essential for encouraging and harmonising sustainable investing across the industry.”

Circularity-focused startup Resynergi announced today it has raised $6.4 million (USD$7 million) in series B funding, with proceeds aimed at scaling its advanced plastic recycling technology to rapidly convert plastic waste into reusable and environmentally friendly material.

Founded in 2015, California-based Resynergi uses Continuous Microwave Assisted Pyrolysis (CMAP) technology to convert plastic its molecular building blocks to be used to create new materials. The company works with recycling organizations to secure used and hard-to-recycle plastics, including high-density polyethylene (HDPE), low-density PE (LDPE), polypropylene (PP), and polystyrene (PS) waste plastics, which represent approximately 60% of the plastic types produced.

According to Resynergi, its modular CMAP technology can convert plastic waste into reusable materials at a rate 20 times faster than traditional pyrolysis methods, and can generate products with a CO2 reduction of up to 68%.

Proceeds from the capital raise will be used to scale production of Resynergi’s CMAP technology, as well as to expand its executive team to drive growth.

Resynergi CEO Brian Bauer said:

“We’re accelerating plastic circularity with our technology. By diverting plastic from our landfills and oceans we’re on a mission to protect human health and our environment. This round of funding and the additions to our board of directors underscores our position as a trusted solution partner in the recycling ecosystem for those who view hard-to-recycle plastic as a resource to meet the outsized market demand for products that incorporate recycled plastic.”

The funding was co-led by international industrial deep tech seed-stage venture capital fund Transitions First and Lummus Technology, a global provider of process technologies and value-driven energy solutions. Leon de Bruyn, President and CEO of Lummus Technology, and Marianne Abib-Pech, Managing Partner, Transitions First and former Global CFO of Shell Aviation, are joining the company’s board of directors.

Abib-Pech said:

“As our natural resources are increasingly scarce, supporting Resynergi in scaling their recycling process technology is an example of our role in driving innovation and accelerating industrial transitions for a more sustainable future.”

de Bruyn added:

“Our investment in Resynergi expands our range of clean energy solutions and aligns with our commitment to support a more circular, low carbon future. Resynergi’s progress in advanced recycling technology allows us to meet the growing need for waste to clean energy conversion in the downstream energy industry.”

Home appliance manufacturer Electrolux announced today that it has set a new science-based climate target to reduce greenhouse gas emissions across its value chain, including in its products and operations.

The new target has been approved by the Science Based Targets initiative (SBTi), one of the key organizations focused on aligning corporate environmental sustainability action with the global goals of limiting climate change. The company’s previous science-based targets, which included goals to reduce Scope 1 and 2 emissions by 82%, and Scope 3 product use emissions by 25% by 2025,  on a 2015 basis, were achieved three years ahead of schedule. 

Under the new target, Electrolux aims to reduce the company’s Scope 1 and 2 direct and indirect emissions from its own operations by 85% and to reduce the Group’s absolute scope 3 emissions, including use of sold products, materials, transport of products and business travel, by 42% between 2021 and 2030.

Electrolux Group CEO Jonas Samuelson said:

“We’re very proud to have our second science-based climate target approved at the end of 2023 by the Science Based Targets initiative after achieving our first science-based target three years ahead of plan. We’re focused on keeping up our momentum to drive climate action throughout our value chain.”

Electrolux Group was one of the first 100 companies in the world to set a climate target approved by the Science Based Targets initiative in 2018. With the new scope 1 and 2 goal, Electrolux Group is targeting a 97% emission reduction in operations by 2030 compared with 2015.

Elena Breda, Chief Technology and Sustainability Officer at Electrolux Group said:

“The new science-based target will bring us close to zero emissions in operations by 2030, despite the challenging global economic outlook and some manufacturing processes to be addressed together with our suppliers.  As approximately 85% of the global climate impact of an appliance is generated when it is in use, therefore by offering resource and energy efficient products is where we can have the greatest positive climate impact and our scope 3 target supports our work on this.”