Climate Transition Capital Acquisition I B : CTCA1 Publishes Interim Financials to 30 June 2022

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, SOUTH AFRICA, JAPAN OR ANY OTHER JURISDICTION IN VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

PRESS RELEASE

CTCA1 2022 INTERIM RESULTS

Amsterdam, 28 September 2022

Climate Transition Capital Acquisition 1 ("CTCA1") publishes its interim financial report for the period from 31 December 2021 to 30 June 2022 (the "Period").

Marieke Bax, CTCA1 Chair, said:

High temperatures and high energy prices have a common solution

European households and businesses continue to suffer the effects of climate change and the higher cost of living. Following two months of extreme heat, Europe sweltered again in July and August with temperatures exceeding 40°C, in some cases for the first time ever. Europe has also experienced very dry conditions over the summer, with much of the continent seeing rainfall well below average.

As expected, the European Central Bank raised interest rates in July for the first time in more than a decade, lifting its benchmark deposit rate from minus 0.5% to zero. A further increase of 0.75% came in September as inflation reached 9.1% in August, well above the ECB's previous prediction of a peak at 7.5%.

Energy prices remain the most important component of overall inflation and European governments have now allocated over 280 billion euros in funding to cushion the impact of the energy crisis on households and businesses which could last a decade.

Against this backdrop, many of the companies that CTC talks to are reporting effectively unlimited demand for their climate solutions, given the rapid payback from such investments and the increased security of supply. Nonetheless, some of these companies continue to face significant supply chain constraints.

These challenges can be seen very clearly in the case of solar PV, where two main factors are driving up costs. First, shipping prices have skyrocketed, especially for containers leaving China, whose share of global polysilicon, ingot and wafer production is almost 95%.

Second, key solar panel components have become more expensive. Polysilicon production has been hit especially hard by the bullwhip effect: an oversupply before the pandemic, which prompted manufacturers to halt production. Then, economic activity returned faster than expected, and polysilicon miners and refiners struggled to catch up, sending prices soaring. Amidst a slowdown in solar PV installations globally, suppliers are prioritising well-capitalised customers.

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NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, SOUTH AFRICA, JAPAN OR ANY OTHER JURISDICTION IN VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

What CTC offers a European climate transition leader

Trillions of euros will be needed to decarbonise the European economy and many households will not be able to afford to make these investments, despite the ongoing savings. For example, the average domestic solar PV system costs 15,000 euros whereas average annual household savings are only 3,700 euros. The cost-of-living crisis will deplete household finances further, making much-neededcost-saving investments even less affordable and meaning that retail propositions will need to be fully financed, 'no money down' deals. Equally on the commercial side, many businesses may be unwilling or unable to fund climate solutions from their balance sheets, despite the potential for improved returns on capital employed. This suggests that a very significant portion of the capital needed for the climate transition in Europe will have to be supplied by third-party providers (particularly institutional investors) or otherwise intermediated.

These factors all play very favourably towards a European climate transition SPAC. While capital markets globally continue to be challenged by macroeconomic tailwinds, selective equity issuance is still succeeding - particularly on Euronext Amsterdam which is increasing its share of this activity in the European market.

Further, the European SPAC market lacks many of the structural challenges that have so disrupted the US since the start of the year, such as new SEC rules, new taxes on share transactions, litigation and regulatory risks and a fundamental oversupply of SPAC capital.

CTC also benefits from being mission-driven and having a higher proportion of strategic and long-only shareholders in our SPAC (and broader investor relationships) who share our climate goals, compared with many other SPACs. This means we can provide a European climate transition leader with the opportunity to raise a significant amount of capital in a controlled transaction which can then be used to accelerate business growth. The public listing also provides a currency for M&A, enabling the company to drive the consolidation and integration we expect to see in numerous climate transition sub-sectors.

For climate asset companies, such as rooftop solar providers, the enhanced public profile may also help with tapping public capital markets for lower cost funding such as asset finance, infrastructure debt and green bonds which would allow the creation of climate asset portfolios of considerable scale.

At Climate Transition Capital we remain very realistic about the current market challenges but also very excited about the opportunity to bring a climate transition leader to Amsterdam. As John F. Kennedy said, our problems are man-made, therefore they can be solved by man.

On 5 September, we announced that Non-Executive Director David Crane had stood down from the Board in connection with his nomination by President Biden to the role of Under Secretary of Infrastructure at the Department of Energy. I would like to take this opportunity, on behalf of all the Board, to thank him again for his insights and experience over the last year and to wish him every success for the future."

More information about CTCA1 can be found athttps://climatetransitioncapital.com/investor-resources/.

Financial highlights as at 30 June 2022
Proceeds receivable from the issue of Units	€190.0m
Financial liability relating to Units	€186.7m
Closing price of Units on 30 June 2021	€9.85

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