Green Markets - August 7, 2024

Aug 07, 2024

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

The UK plans to introduce legislation next year to regulate ESG rating agencies, which currently operate with little oversight. Chancellor Rachel Reeves announced this initiative during her visit to Toronto, aiming to enhance transparency in the sector and align UK regulations with international standards, including those of the EU. The Financial Conduct Authority (FCA) will oversee the new rules, which will address concerns about opaque rating criteria and their potential impact on investment choices.

The European Union has introduced a law aiming for significant self-sufficiency in critical minerals by 2030. It targets mining 10%, recycling 25%, and processing 40% of its needs domestically. The EU also aims to limit dependency on any single country for rare earths to 65%.
Qatar’s sovereign wealth fund has invested $180 million in TechMet, a mining investment vehicle supported by the US International Development Finance Corporation, to bolster the development of critical minerals such as lithium, nickel, cobalt, and rare earths. TechMet, which has invested over $450 million in various global projects, has seen its valuation exceed $1 billion following this latest funding round.
BHP is considering selling its Brazilian copper and gold assets, which it acquired through its $6.27 billion purchase of Oz Minerals in May 2023. The company has engaged the financial services firm Banco Santander for advice on the potential sale. This move follows BHP's recent decision to abandon its acquisition plans for Anglo American.

South Jersey Industries (SJI) and OPAL Fuels have begun construction on a renewable natural gas (RNG) facility at the Burlington County Resource Recovery Complex in New Jersey. This project is expected to produce about 6.5 million gas gallons equivalent (GGE) of RNG per year.
Delek has temporarily idled its three biodiesel plants in Arkansas, Texas, and Mississippi, which collectively produced 2,600 barrels per day of biodiesel from various feedstocks. The decision, influenced by a decline in the biodiesel market, resulted in a $22 million impairment reported in their second-quarter earnings. Delek is exploring alternative strategies amid worsening production economics for U.S. biodiesel producers.

Australia Post will end its Carbon Neutral Deliveries program, effective August 12th, despite its commitment to achieving net zero emissions by 2050. The program, which offset emissions through carbon credits, will be replaced by a focus on direct decarbonization initiatives. Australia Post emphasized that it remains committed to its sustainability goals and will continue working towards its net zero targets as outlined in its 2025 Sustainability Roadmap.

Related Stock List(s): Carbon Credit Stocks

Fotowatio Renewable Ventures (FRV) Australia has secured $1.2 billion in funding to advance its first major battery project, the 100MW/200MWh Terang BESS in Victoria. FRV purchased the Terang project from Ace Energy in 2021, and it has also signed agreements for the nearby 250MW/500MWh Gnarwarre project. With nearly 1GW of solar and 205MWh of battery storage in its portfolio, FRV continues to expand its presence in renewable energy through various projects across Australia.

GFI LNG and Pilot LNG have announced a partnership to develop a small-scale LNG terminal in Salina Cruz, Mexico. The project will enter the front-end engineering and design (FEED) phase this quarter, with a final investment decision (FID) expected in the second half of 2025 and full operations targeted between mid-to-late 2027. The terminal will produce 600,000 gallons of LNG daily.

Related Stock List(s): LNG Stocks

Blackstone Energy Transition Partners has acquired a majority stake in Westwood Professional Services, a firm specializing in renewables and power infrastructure. Westwood offers engineering and consulting services for wind and solar energy, energy storage, EV infrastructure, and more. This acquisition aligns with Blackstone's strategy to invest $100 billion in energy transition and climate solutions over the next decade.

The Government of Ontario has announced a $970 million investment through its House-Enabling Water Systems Fund to support 54 water infrastructure projects across 60 municipalities, aimed at expanding drinking water, wastewater, and stormwater systems to facilitate housing development. An additional $250 million will be available for a second round of applications, bringing the total fund to $1.2 billion.

Related Stock List(s): Water Stocks

The Retirement Fund (KWAP) has committed $4.5 billion to transition assets, focusing on ESG principles. The fund will invest in renewable energy, sustainable infrastructure, and clean technologies, aiming for a net-zero portfolio by 2050.
Impact Earth plans to launch a biodiversity fund, aiming to raise between $50-100 million, with a focus on either Latin America or Southeast Asia. The fund will leverage nature-based solutions to address biodiversity and climate impacts, similar to its Amazon Biodiversity Fund.

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