Green Markets - December 19, 2024

Dec 20, 2024

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

President Joe Biden has set an ambitious climate target for the U.S. to reduce greenhouse gas emissions by 61-66% by 2035, building on the commitment to achieve net-zero emissions by 2050. This goal will be supported by investments from the Inflation Reduction Act and the Bipartisan Infrastructure Law, alongside federal standards and collaboration with local and state governments.
South Korea's National Pension Service (NPS), the world's third-largest retirement fund with assets worth approximately $791 billion, has announced new climate policies to exit coal investments. Starting in 2025, the NPS will divest from overseas companies that generate over 50% of their revenue from coal power or production. The policy will extend to domestic firms, including state-run utility Korea Electric Power Corp (KEPCO), by 2030, unless they present clear energy transition plans. The NPS currently holds shares in coal producers such as Coal India and Whitehaven Coal, which will be sold under the new guidelines.

Norway, through its Enova SF initiative, has allocated $108 million to fund 14 projects developing ammonia, hydrogen, and electric ships, including infrastructure like charging stations. This includes $83 million for ammonia and hydrogen vessels and $25 million for electric vessels.

Qatar's $500 billion sovereign wealth fund, the Qatar Investment Authority (QIA), is preparing to deploy its capital more aggressively as the country anticipates a significant increase in LNG revenues from its expanded North Field gasfield. The fund's new CEO, Mohammed Al-Sowaidi, stated that QIA will focus on larger deals and more frequent investments, particularly in the US, UK, and Asia, with a focus on technology, healthcare, and infrastructure.
Shell and Argentina’s state-run YPF have entered into a partnership to develop Argentina’s first LNG export project, with a total investment of $50 billion. The initial phase will involve the construction of two floating platforms designed to produce approximately 10 million metric tons of LNG annually.
Woodside has acquired Chevron's interests in the North West Shelf (NWS) LNG project, the NWS Oil project, and the Angel Carbon Capture and Storage (CCS) project in exchange for its stakes in the Wheatstone and Julimar-Brunello projects, plus a cash payment of up to $400 million from Chevron. This asset swap strengthens Woodside’s focus on its operated LNG assets. The NWS project is one of Australia's largest LNG operations, while the Angel CCS project aims to process up to 5 million tonnes of CO₂ annually.

Related Stock List(s): LNG Stocks

Virginia is set to build the world’s first grid-scale nuclear fusion power plant, with Commonwealth Fusion Systems leading the project. The plant aims to generate 400 MW of electricity by the early 2030s.

The OPEC Fund for International Development has approved over $130 million in financing for renewable energy projects in Egypt, Turkey, and Mauritania. The funding includes:
- $40 million for Egypt's Gulf of Suez wind project.
- $40 million for solar and grid infrastructure in Mauritania.
- $50 million for energy initiatives in Turkey.

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