Green Markets - November 22, 2024

Nov 23, 2024

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

A recently announced COP 29 draft climate finance deal proposes that wealthy nations provide $250 billion annually to developing countries until 2035 to address climate change. This amount, while a step up from the existing $100 billion annual pledge, has been criticized by developing nations like Kenya and Panama as insufficient, with some delegates threatening to walk out without a more ambitious agreement. Meanwhile, major contributors such as the EU argue that higher commitments are politically unrealistic without significant private-sector involvement.

Corteva has announced a partnership with BP to form a joint venture (JV) aimed at developing crop-based biofuel feedstocks for SAF production. The JV has a goal of delivering one million metric tons of biofuel feedstocks annually by the mid-2030s. Corteva will work with farmers in North and South America, and Europe, to grow proprietary crops like mustard seed, sunflower, and canola, designed to meet SAF production standards and qualify for EU and U.S. low-carbon incentives.

U.S. Senators Lisa Murkowski (R-Alaska) and Michael Bennet (D-Colorado) have introduced the Carbon Dioxide Removal (CDR) Investment Act, aiming to incentivize CO2 removal technologies through a new production tax credit. The proposed credit, potentially named 45BB, will provide $250 per ton of CO2 removed, with a reduced rate of $110 for bio-energy with carbon capture (BECCS). The tax credit will support various carbon removal approaches, including direct air capture (DAC), enhanced rock weathering, and marine carbon removal, and is intended for companies not receiving funds from the existing 45Q credit.

Related Stock List(s): Carbon Capture Stocks

Swedish battery maker Northvolt has filed for Chapter 11 bankruptcy protection in the U.S. due to severe liquidity issues. Despite this, the company secured $100 million in financing from Swedish truck manufacturer Scania, its largest customer, to continue operations while restructuring. Northvolt aims to complete the restructuring by Q1 2025. The bankruptcy comes amid intense competition from Chinese rivals and slower-than-expected demand for EV batteries.
The U.S. Department of Energy (DOE) has announced a $1.3 billion loan to ENTEK Lithium Separators LLC for a new lithium-ion battery separator manufacturing facility in Terre Haute, Indiana. The facility will produce 1.72 billion square meters of separator material annually, enough to support approximately 1.9 million mid-size EVs.

North Asia's spot LNG prices have reached their highest levels this year, driven by increased competition from Europe for liquefied natural gas. The Japan-Korea marker surged to around $15.3 per million BTUs, the highest since December 2023. This price rise is partly due to unusually cold weather in Europe, depleting gas inventories and boosting demand for LNG shipments. As a result, some European traders are diverting supply away from Asia, although buyers in China and India are reducing spot purchases due to high costs. Despite the rise in Asian prices, U.S. shipments continue to favor Europe, with weekly LNG deliveries to Europe expected to reach their highest level since February.

Related Stock List(s): LNG Stocks

Finland and the UK have signed an MoU to strengthen collaboration in civil nuclear energy, focusing on deploying traditional reactors, small modular reactors (SMRs), and advanced nuclear technologies for power, heat, and hydrogen production.

The U.S. EPA has released a National Strategy to Prevent Plastic Pollution, focusing on reducing single-use plastic consumption and improving recycling systems through extended producer responsibility (EPR). As global treaty talks on plastic waste approach, key discussions will center on capping plastic production to reduce pollution, a policy seen as crucial by environmental experts.

Related Stock List(s): Recycling Stocks

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