Green Markets - January 8, 2025
News in environmental markets.
Green Markets is a daily series dedicated to highlighting events of interest that could impact investments within environmental markets.
General Environmental/Regulatory
David Kennedy has been appointed as the new CEO of the Science Based Targets initiative (SBTi). Kennedy, who previously served as the founding CEO of the UK's Committee on Climate Change (CCC), has extensive experience in guiding businesses on net-zero strategies. He succeeds interim CEO Sue Jenny Ehr and will focus on updating the Corporate Net-Zero Standard and developing new sector-specific frameworks. Kennedy's leadership aims to strengthen SBTi's position as the global leader in voluntary climate action, with nearly 40% of global market cap companies already engaged with the initiative.
JPMorgan Chase has exited the UN-backed Net-Zero Banking Alliance (NZBA), marking the departure of all major U.S. banks from the group, including Citi, BofA, Morgan Stanley, Goldman Sachs, and Wells Fargo. The bank stated it will continue to pursue low-carbon technologies and energy security independently, while supporting clients in their energy transition.
The Glasgow Financial Alliance for Net Zero (GFANZ) has announced a major restructuring, refocusing on mobilizing capital for the low-carbon transition, and widening its participation to include financial institutions not part of its net-zero coalitions. This shift follows the departure of major U.S. banks, like Citi and Bank of America, from the Net Zero Banking Alliance (NZBA) amid pressure from U.S. Republican politicians. GFANZ, led by Mark Carney and Michael Bloomberg, will now focus on removing barriers to financing energy transitions, particularly in emerging markets, and facilitating public-private partnerships.
Battery Metals
Zijin Mining Group is set to begin lithium production in the Democratic Republic of Congo (DRC) in early 2026. This development centers around the Manono project, one of the largest lithium deposits in the world. The project is currently under legal dispute with Australian company AVZ Minerals, which is attempting to reclaim its exploration license through arbitration. If successful, the Manono project will be Congo's first lithium mine, complementing the country’s role as a leading producer of copper and cobalt globally. Chinese firms, including Zijin, are increasing investments in Africa's lithium reserves to secure raw materials for their refineries as demand from the new energy vehicle and energy storage sectors grows.
Related Stock List(s): Commodity Trust Stocks, Commodity Royalty Stocks
Biofuels/Chemicals
BP's Archaea Energy has successfully launched its first Archaea Modular Design (AMD) RNG plant in Medora, Indiana. This plant, located next to a landfill owned by Rumpke Waste and Recycling, captures landfill gas and converts it into RNG. The AMD design, which features standardized modular components, accelerates plant construction, enabling faster builds compared to traditional methods. This plant is the first in a series of modular RNG plants that Archaea plans to bring online, helping BP advance its goal to increase biogas supply volumes sixfold by 2030.
Related Stock List(s): Biofuels & Chemicals Stocks
Hydrogen
NTPC Green Energy Ltd (NGEL) is set to begin developing a $21 billion green hydrogen hub in Andhra Pradesh, India. The project will cover 1,200 acres in Pudimadaka, near Visakhapatnam, and aims to produce 1,500 tonnes of green hydrogen daily, along with derivatives like green methanol and sustainable aviation fuel.
Related Stock List(s): Hydrogen Stocks
Nuclear Energy
Poland has approved up to $14.7 billion in funding for its first nuclear power plant, aiming to replace aging coal plants with cleaner energy sources. The state-owned utility PEJ will oversee the construction of the 3.75GW plant along the Baltic coast, with the project expected to be completed by 2036. The funding will consist of 30% equity and 70% debt financing, though EU approval is still pending.
Related Stock List(s): Nuclear Energy & Uranium Stocks
Renewable Energy
President-elect Donald Trump recently announced plans to oppose new wind turbine projects, claiming they rely on government subsidies. His comments raised concerns for farmers and ranchers who lease land for turbines, as well as for workers in the U.S. wind industry, especially offshore projects. The focus seems to be on offshore wind, where U.S. projects rely on federal leases.
Grenergy has raised $324 million for the fourth phase of its Oasis de Atacama solar-plus-storage project in northern Chile. The financing, secured from major banks like BNP Paribas and Société Générale, will fund the addition of 269 MW of solar PV capacity and 1.1 GWh of battery energy storage systems (BESS). The Oasis de Atacama project, when fully completed in seven phases, will feature 2 GW of solar PV and 11 GWh of storage, making it one of the world's largest battery storage installations.