Green Markets - December 2, 2024

Dec 02, 2024

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

The fifth meeting of the Intergovernmental Negotiating Committee on Plastic Pollution (INC-5) concluded in Busan, South Korea without reaching an agreement, delaying progress on a binding treaty to curb plastic pollution until next year. Despite "significant progress," unresolved issues, such as regulating plastic production, hazardous chemicals, and funding mechanisms, prevented consensus.

Project Tundra, a $2 billion carbon capture initiative at the Milton R. Young coal plant in North Dakota, faces delays with no final investment decision expected in 2024. Minnkota Power Cooperative, the project's lead developer, also lost a key sponsor and opposes the EPA's new power plant emissions rule, citing concerns about reliability and affordability. The incoming Trump administration has signaled plans to roll back such federal energy regulations.

Related Stock List(s): Carbon Capture Stocks

Trafigura is investing $600 million to capitalize on a potential revival in the VCM, bolstered by regulatory clarity and the adoption of new global frameworks under the Paris Agreement. This includes $500 million for reforestation in Africa's Miombo woodlands and $100 million for a nature-based carbon project in Colombia. Despite criticism over market integrity and a 23% market value drop in 2023, Trafigura sees carbon credits evolving into investment-grade assets, essential for achieving corporate net-zero goals.

Related Stock List(s): Carbon Credit Stocks

U.S. LNG demand reached near-record levels in November, driven by cooler weather and fewer outages. LNG export plants were expected to draw 14.6 billion cubic feet (bcf) of natural gas, just shy of the record 14.7 bcf from December 2023. The U.S. remains the world’s largest LNG exporter.
QatarEnergy has signed a long-term sales and purchase agreement with Shell to supply three million metric tons per annum of LNG to China, starting in January 2025. Qatar is the third-largest LNG exporter globally, behind the U.S. and Australia, and continues to secure long-term contracts, including recent deals with Chinese buyers for new gas from its North Field.

Related Stock List(s): LNG Stocks

Avon Pension Fund plans to invest an additional £100m to £150m in natural capital, focusing on sustainable forestry and agriculture, to support its net-zero goals by 2045. The fund also aims to increase investments in climate solutions, including renewable energy and waste management.

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