Green Markets - August 15, 2024

Aug 15, 2024

Green Markets is a daily series dedicated to highlighting events of interest that could impact investments within environmental markets.

The Commonwealth Bank of Australia (CBA) has announced it will cease financing fossil fuel companies that do not align with the Paris Agreement's climate goals by the end of 2024. Climate advocates have praised the move, and they are now calling on other major banks like ANZ, NAB, and Westpac to follow suit. CBA's decision highlights a growing trend of financial institutions reevaluating their support for fossil fuel industries in light of climate goals. For the record, fossil fuel usage will be a necessity for decades to come, so I believe cutting off funding for these markets is a bad idea.

The US Department of Agriculture (USDA) is set to evaluate and list approved voluntary carbon market ecosystem players to facilitate private farmer and rancher participation in carbon offsetting initiatives.

Air Products, a specialty chemicals provider, has set a new goal to quadruple its use of renewable energy by 2030, based on a 2023 baseline. The company has updated its carbon intensity targets, shifting the baseline year to 2023 for a more ambitious 2030 goal. Additionally, Air Products is committing $15 billion to energy transition projects through 2027, focusing 70% of its 2023 R&D spend on sustainability.

BeZero Carbon awarded its first 'AAA' rating to Climeworks' Orca Direct Air Capture and Carbon Storage (DACCS) project in Iceland, recognizing its high likelihood of effectively removing and safely storing CO2. The Orca project, powered by geothermal energy, captures CO2 from the atmosphere and stores it in rock formations, aiming to remove 2,600 tonnes of CO2 annually.
Verra is introducing a new Project Activity Data Allocation (PADA) fee for REDD projects using the Verified Carbon Standard (VCS) Methodology VM0048 and Module VMD0055. This fee, ranging from $10,000 to $150,000 per project, covers costs related to jurisdictional baselines, including data collection, third-party reviews, and administration. The fee replaces previous baseline setting costs and ensures high-quality, unbiased data. Changes to the project area also elicits another fee that must be paid to the registry. Verra's updated methodology eliminates conflicts of interest by directly allocating deforestation data to projects.

Related Stock List(s): Carbon Credit Stocks

Tucson Electric Power (TEP) plans to build a second 200MW/800MWh battery energy storage system (BESS) project in Tucson, Arizona. This new project will follow the Roadrunner Reserve project, also a 200MW/800MWh BESS, scheduled to be operational in 2025. TEP aims to commission Roadrunner Reserve II in early 2026.
AGL Energy has announced its acquisition of Firm Power and Terrain Solar, significantly expanding its development pipeline. The acquisition adds 5.8 GW of large-scale solar and battery energy storage system (BESS) projects to AGL's portfolio. The combined development pipeline of AGL, Firm Power, and Terrain Solar now totals 8.1 GW.
SAE, a renewable energy firm, has taken full ownership of the 120 MW battery energy storage system (BESS) project at the Uskmouth Sustainable Energy Park (USEP) following a share purchase agreement with Enso Green Holdings. Construction is slated to start in 2025, with a target grid connection date of October 2026.

The Biden administration has reportedly shifted its stance to support the United Nations initiative aimed at reducing global plastic production. Previously, the U.S. favored a more flexible approach, but it now backs a treaty that could impose production caps and target specific chemicals. This change aligns the U.S. with countries like South Korea and the EU, though it faces opposition from major petrochemical producers. The treaty's enforcement mechanisms are still unclear, and final negotiations are expected to conclude in November 2024.

Related Stock List(s): Recycling Stocks

Nova Scotia is set to receive over $192 million in funding from Natural Resources Canada’s Smart Renewables & Electrification Pathways (SREP) and Electricity Predevelopment programs for several electricity projects. The funding will support Benjamin Mill Wind LP's 33.6 MW wind project, Higgins Mountain Wind Farm LP’s 100 MW wind project, and Wedgeport Wind Farm LP’s 84 MW wind project. Additionally, $117.6 million will go to Nova Scotia Power Inc. to install three 50-MW battery energy storage systems.
General Motors (GM) has signed a 15-year renewable energy purchase agreement with NorthStar Clean Energy, marking its largest power purchase deal. This agreement will supply renewable energy to three GM assembly plants. The deal brings GM’s total renewable energy sourcing agreements to 17 plants across 11 states, making it the automotive industry's largest buyer of renewable power.
European Energy has secured financing from mBank to construct two solar farms in Poland, located in Pomerania and West Pomerania, with a combined capacity of 70 MW. The Lobez PV farm will have a capacity of 16 MW, and the Debnica Kaszubska farm will have 54.2 MW. Both projects are expected to be completed by Q4 2024.

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