Green Markets - July 3, 2024

Jul 04, 2024

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

Alterra, a $30 billion fund launched by the UAE to support climate finance, is preparing for its next round of investments following initial deals totaling $6.5 billion with BlackRock, TPG, and Brookfield last year. Operated as a fund of funds, Alterra allocates capital to money managers investing in green energy transition projects, aiming to leverage de-risking structures to attract private finance.
The EPA will enforce a new rule, effective July 8, 2024, designating PFOA and PFOS (forever chemicals) as hazardous substances under CERCLA, prompting concerns among landfill operators about liability and costs. Facilities must report releases of these compounds exceeding one pound to the NRC and SERC within 24 hours and notify affected parties via local media. The EPA may pursue recovery of cleanup costs from responsible parties, with mandatory five-year reviews following remediation efforts.

BASF has decided to halt its investment plans in Chile's lithium sector due to the global slowdown in electric vehicle (EV) adoption, which has reduced demand for battery metals and lowered lithium prices. BASF was in preliminary talks with Wealth Minerals, a Canadian company with lithium projects in Chile, for potential funding and offtake agreements and was considering building a facility in Chile to process lithium into cathodes for EV batteries.
Glencore will cease production at its Mutanda cobalt and copper mine in the Democratic Republic of Congo (DRC) by the end of this year due to economic unviability. The mine, which produces a fifth of the world's cobalt supply, is affected by a significant drop in cobalt prices, which have fallen by over 40% this year due to an oversupply from the DRC. Last year, Mutanda produced 199,000 tonnes of copper and 27,300 tonnes of cobalt. While the mine will be maintained with the possibility of future production resumption, the current market conditions have rendered it unsustainable for the time being.
Bloomberg Index Services Limited has launched new indices, BCOMLM, BCOMLMT for lithium, and BCOMCB, BCOMCBT for cobalt, utilizing Fastmarkets' commodity pricing. These indices track CME Group futures contracts settled against Fastmarkets' physical market assessments, enhancing liquidity and relevance in financial markets.

The LEGO Group has launched a new Supplier Sustainability Programme to enhance collaboration with suppliers in meeting its climate goals and setting and reporting on emissions reduction targets. This initiative is part of LEGO's broader climate action plan, which includes achieving net zero emissions by 2050 and reducing emissions by 37% by 2032. Additionally, LEGO plans to tie a portion of bonuses for salaried employees to emissions reduction goals, aiming to expand this KPI to encompass more Scope 3 emissions.
Höegh LNG has partnered with Deutsche ReGas to establish the "H2-Import-Terminal Lubmin," which will be the world's first floating green ammonia cracker. This facility aims to produce approximately 30,000 tons of hydrogen annually, feeding it into Germany's hydrogen network via an existing feed-in point at Deutsche ReGas Terminal in Lubmin's port.

General Motors (GM) has agreed to pay a penalty of nearly $146 million and forfeit emissions credits to settle allegations that approximately 6 million of its vehicles emitted more carbon dioxide than initially reported. The Environmental Protection Agency (EPA) found that certain GM vehicles from model years 2012-2018 exceeded emissions standards by more than 10%. GM denied wrongdoing but agreed to the settlement to resolve fuel-efficiency compliance issues. As part of the settlement, GM will cancel 50 million metric tons of greenhouse gas credits and 30.6 million gas mileage credits.

Zunder, an electric vehicle charging infrastructure company, has secured a significant 225 million euro ($242.9 million) loan from Spanish bank Santander. This financing marks the largest syndicated loan to date in Spain’s electric mobility sector. The loan will facilitate the installation of over 3,000 new charging points in countries like France, Portugal, and Italy.

Lloyd’s Register, H2Terminals Limited, HiDROGEN, and D3IM have signed a Memorandum of Understanding (MoU) to explore the feasibility of a green hydrogen infrastructure project in the UK. The project aims to develop a floating island 100 km offshore that would host wind, wave, and solar energy plants.

Google and ENGIE have signed five new Corporate Power Purchase Agreements (cPPAs) for over 118 MW of renewable power in Belgium, supporting Google's goal of 24/7 carbon-free energy by 2030. The agreements will deliver power from four new onshore wind farms and extend the operation of a 92 MW wind park by eight years.

UNCAGED Innovations has raised $5.6 million in a Seed round to support the commercial launch of its sustainable leather alternative and expand its team. Its product significantly reduces environmental impact, emitting 95% less greenhouse gases, using 93% less water, and 72% less energy compared to traditional leather, and it is free of plastics.
Tree.ly, a carbon offset startup, has successfully raised €5 million from Seed investments. The company specializes in forest climate protection projects across Europe. Tree.ly ensures the credibility of its projects through third-party certification and annual audits by TÜV, employing scientifically validated methodologies that are ISO-certified.

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