Green Markets - December 27, 2024

Dec 28, 2024

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

New York Governor Kathy Hochul has signed a law requiring oil, gas, and coal companies to pay $75 billion over 24 years for their contributions to carbon emissions and climate change. The funds, to be collected under the New York Climate Superfund, will finance climate resiliency projects like coastal protection and flood mitigation. Critics, including energy companies and business advocates, argue the law is unworkable, potentially unconstitutional, and will ultimately raise costs for consumers.
- For the record, I think punishing fossil fuel companies for producing commodities necessary for our very survival… is a bad idea. Implementing new carbon taxes or other measures is one thing— but billions of dollars in fines over historical activity is just ridiculous.
India is re-evaluating its $30 billion program to install flue-gas desulphurization (FGD) systems in coal-fired power plants due to the low sulphur content (0.5%) of Indian coal and the limited air quality improvements these systems provide. Only 8% of targeted plants have adopted FGDs, citing high costs and operational challenges. The government proposes cost-effective alternatives like electrostatic precipitators, better suited to tackle particulate matter pollution from high-ash coal. The deadline for FGD compliance may be extended to 2029 as policymakers consult further, while environmental groups urge broader reforms to reduce coal dependency.

BloombergNEF's latest report predicts that green hydrogen will remain significantly more expensive than gray hydrogen until at least 2050, with production costs revised sharply upward due to rising electrolyzer expenses. Green hydrogen is now expected to cost $1.60–$5.09 per kilogram by 2050, compared to gray hydrogen's $1.11–$2.35. The International Energy Agency also cites unclear demand signals, regulatory hurdles, and financing issues as key factors slowing the adoption of low-carbon hydrogen.

Related Stock List(s): Hydrogen Stocks

UAE-based investment firm Kazar plans to invest $2.5 billion in a 3.1 GW hybrid renewable energy plant in Egypt’s Zafarana region. The project will generate 2 GW of solar power and 1.1 GW of wind power. Construction is set to begin in 2026 following the completion of feasibility studies and financial arrangements.

China has approved the construction of the world’s largest hydropower dam on Tibet’s Yarlung Zangbo River, capable of generating 300 billion kWh of electricity annually. While the project supports China's carbon neutrality goals and economic development in Tibet, it raises environmental concerns and risks disrupting water flows to India and Bangladesh downstream.

Related Stock List(s): Water Stocks

Green Investing