Green Markets is a daily series dedicated to highlighting events of interest that could impact investments within environmental markets.
General Environmental/Regulatory
Malaysia's Deputy Prime Minister Fadillah Yusof announced that the country will phase out coal-fired power generation, with no new coal plants planned. This decision aligns with Malaysia's commitment to transition toward cleaner energy, aiming for 40% renewable energy in the national electricity mix by 2035 and 70% by 2050, up from the current 28%.
The Swedish government has decided to abolish a flight tax introduced in 2018, which was aimed at reducing aviation emissions. This change, effective July 2025, is expected to lower ticket prices significantly, encouraging more flying despite the government acknowledging that it will lead to increased emissions. Meanwhile, Denmark is moving in the opposite direction by planning to implement a flight tax in 2025 to support the transition to sustainable fuels in the aviation sector.
Voluntary Carbon Markets (VCMs)
AirCarbon Exchange (ACX) is closing its Abu Dhabi operations after just one year of trading. Demand for carbon credits has been weak, partly due to the absence of government mandates in the Middle East and global greenwashing allegations that have reduced voluntary purchases. Additionally, competition from other regional platforms, like Saudi Arabia's voluntary carbon market, has further fragmented demand.
Related Stock List(s): Carbon Credit Stocks
Hydrogen
Orsted has exited two Danish hydrogen projects: the Green Fuels for Denmark (GFDK) initiative and the H2RES demonstration project. The H2RES project, developed to explore small-scale hydrogen production, will not continue due to its limited relevance in the current market. Orsted's departure from GFDK aligns with its strategy to prioritize wind energy over e-fuels in Northern Europe. While stepping back from these projects, Orsted remains open to green hydrogen initiatives that complement its core wind energy focus.
Related Stock List(s): Hydrogen Stocks
Liquified Natural Gas (LNG)
Japan is considering quadrupling its emergency LNG purchases to boost energy security, aiming to buy 12 cargoes annually, up from three.
Related Stock List(s): LNG Stocks
Nuclear Energy
The European Commission has selected nuclear reactor projects from Italy's Ansaldo Nucleare and Newcleo as part of its initiative to advance small modular reactors. Ansaldo, in collaboration with Romanian and Belgian partners, is working on the ALFRED project, a fourth-generation modular reactor. Newcleo, led by physicist Stefano Buono, is developing a lead-cooled fast reactor (LFR) that utilizes reprocessed nuclear waste as fuel.
Related Stock List(s): Nuclear Energy & Uranium Stocks
Renewable Energy
Greece has unveiled a revised climate and energy plan, setting more ambitious renewable energy targets to combat greenhouse gas emissions. The plan aims for an 82% share of renewable electricity generation by 2030, up from the previous target of 66%. This is part of the country's commitment to the EU's goal of cutting emissions by at least 55% by 2030. The plan includes investments totaling €95 billion by 2030, rising to €330 billion by 2050, focusing on solar and wind power expansion, energy storage, and building efficiency.
Spain's Iberdrola has doubled its UK investment plan to £24 billion ($31.37 billion) for 2024-2028, primarily targeting power transmission and distribution networks.
The European Investment Bank (EIB) and Intesa Sanpaolo have announced an agreement to stimulate up to €8 billion in investments for the wind industry. This initiative includes a €500 million counter-guarantee from the EIB, enabling Intesa Sanpaolo to create a portfolio of guarantees worth up to €1 billion, thereby unlocking significant funding for wind power projects across the EU. The agreement is part of the EIB's €5 billion wind power package, designed to support the EU's goal of generating at least 45% of its energy from renewable sources by 2030.