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Climate-focused fund investments drop by 75% in the US since 2021

Published on 30th January 2024

While the world is trying to sprint through the race against climate change, climate investments have taken an antithetical turn in the US.

Owing to high interest rates and an ‘anti-woke’ sentiment fresh in the market, climate-focused mutual fund investments have dropped to $37.8 billion in 2023, down from $151 in 2021, a whopping 75%.

According to Morningstar data, quoted by the Financial Times, these are the worst numbers the market has seen since 2019.

Steadily rising interest rates shot green energy companies into soaring debts, which in turn contributed to falling stock rates.

This heavily contributed to the downfall in mutual fund investments since money was diverted to high-yielding cash flows. ESG mutual funds experienced a $2.5 billion outflow, globally.

However, a big factor in this trend is also the political campaigning against these ‘woke’ investments. Multiple US states have legislated against ESG investments, often referring to them as being ‘biased’ against oil and gas industries.

A report by the Climate Policy Initiative found that the world’s climate finance should increase five times from $1.3 trillion in 2021-22, as soon as possible to avoid the worst consequences of climate change.

In light of 2023 being recorded as the hottest year on Earth, the recent state of climate legislation in the US has raised some concerns.

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Home / Carbon Markets

E.ON and ARC Launch CopenCapture to Capture CO2

E.ON and ARC launch CopenCapture at CopenHill, aiming to capture and store 400,000 tons of CO2 annually, advancing carbon capture technology for global climate goals. (Image Credits: FB|@CopenHill Urban Mountain)

Neelima N M

Published on 27th March 2025

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E.ON and Amager Resource Center (ARC) have officially signed a partnership agreement to launch CopenCapture, a groundbreaking carbon capture and storage (CCS) project based at CopenHill, Copenhagen’s landmark waste-to-energy facility. The project will trap 400,000 tons of CO2 per year and sequester it in the ground to avoid its emission into the air.

The partners signed the agreement at the top of CopenHill’s famous chimney, representing their mutual vision to make the plant an international demonstration facility for CCS technologies.

Prequalification for Danish CCS Tender Underway

The new alliance also marks E.ON’s entry into the Danish Energy Agency’s CCS tender process, which requires full-scale carbon capture by 2030. The project’s execution depends on receiving financial backing through Denmark’s CCS funding program.

If successful, CopenCapture could become a model for how waste-to-energy (WtE) plants across Europe and beyond can align with climate targets while continuing to play a critical role in waste management and local energy production.

Marten Bunnemann, CEO of E.ON Energy Infrastructure Solutions, said, “Electrification can reduce many types of CO2 emissions. However, we do not yet have the technologies to eliminate the need for environmentally responsible treatment of residual waste that cannot be reused or recycled.”

He added, “Utilizing residual waste to generate local heat and electricity for communities and businesses is the best available solution. However, waste-to-energy (WtE) still faces a challenge: CO₂ emissions from the process.”

Also read: Denmark’s First Full-Scale CO2 Storage Facility Receives Investment Decision

Turning Residual Waste into Negative Emissions

Much of the CO2 emitted at CopenHill comes from burning organic waste like contaminated paper and cardboard. Since this type of CO2 is classified as biogenic, its capture leads to negative emissions, permanently removing naturally occurring carbon from the atmosphere.

The initiative will monetize these negative emissions as high-quality Carbon Removal Credits (CRCs) and sell them on the voluntary carbon credit market. Companies can purchase these credits to offset emissions or contribute to their climate goals.

Home / Clean Energy

Vattenfall Greenlights Nordlicht 1 & 2 Offshore Wind Farms

An image of a wind farm to represent Vattenfall's offshore wind farm

Vattenfall's Nordlicht 1 and 2 offshore wind farms to drive Germany's renewable energy future with over 1.6 GW capacity.

Neelima N M

Published on 26th March 2025

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Vattenfall has made the final investment decision on developing the Nordlicht 1 and 2 offshore wind farms, a massive step towards renewable energy in the country. Construction of the Nordlicht 1 and 2 offshore wind farms is to begin in 2026, with both scheduled to go onstream in 2028. Nordlicht 1, when fully constructed, will be Germany’s largest offshore wind farm, pushing the nation towards its renewable energy target.

Vattenfall’s Sustainability Commitment

Helene Biström, Head of Business Area Wind at Vattenfall, said, “The Nordlicht offshore wind cluster makes a significant milestone in the path to enabling fossil freedom. By accelerating Germany’s energy transition and supporting industrial decarbonisation, it will provide clean, reliable energy while driving innovation and sustainability in the sector. We look forward to realising this important project in close collaboration with our supply chain partners”

BASF Secures Long-Term Renewable Energy Supply

With Vattenfall’s investment choice, BASF has deepened its cooperation with the company. Following BASF’s acquisition of shares in the Nordlicht cluster in 2024, Vattenfall will repurchase those shares while providing BASF with long-term access to renewable electricity. This partnership guarantees BASF’s European chemical production will be fueled by clean energy as demand for renewable energy surges simultaneously.

Also read: Vattenfall Pauses Carbon Capture and Storage Project

A Renewable Power Capacity of Over 1.6 GW

The Nordlicht wind cluster, which will feature both the Nordlicht 1 and 2 wind farms, will boast a combined net capacity of more than 1.6 GW. This designates Nordlicht 1 as the largest offshore wind project so far in Germany. Vattenfall has also committed to minimizing the project’s carbon emissions by implementing wind turbine towers constructed using low-emission steel, which will see overall emissions decreased by 16 percent.

Vattenfall has invested in Nordlicht 2 contingent upon approval of the required permits. Therefore, the project’s final go-ahead is still pending regulatory approval.

Climate-focused fund investments drop by 75% in the US since 2021

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E.ON and ARC Launch CopenCapture to Capture CO2

Prequalification for Danish CCS Tender Underway

Also read: Denmark’s First Full-Scale CO2 Storage Facility Receives Investment Decision

Turning Residual Waste into Negative Emissions

Vattenfall Greenlights Nordlicht 1 & 2 Offshore Wind Farms

Vattenfall’s Sustainability Commitment

BASF Secures Long-Term Renewable Energy Supply

Also read: Vattenfall Pauses Carbon Capture and Storage Project

A Renewable Power Capacity of Over 1.6 GW

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